Florida Senate - 2017 COMMITTEE AMENDMENT Bill No. SB 1014 Ì309546?Î309546 LEGISLATIVE ACTION Senate . House Comm: RCS . 04/03/2017 . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Banking and Insurance (Brandes) recommended the following: 1 Senate Amendment (with title amendment) 2 3 Delete everything after the enacting clause 4 and insert: 5 Section 1. Subsection (10) is added to section 626.9891, 6 Florida Statutes, to read: 7 626.9891 Insurer anti-fraud investigative units; reporting 8 requirements; penalties for noncompliance.— 9 (10)(a) The information submitted to the department 10 pursuant to paragraphs (3)(d), (e), and (f) and paragraphs 11 (5)(d), (e), (f), (g), and (k) is exempt from s. 119.07(1) and 12 s. 24(a), Art. I of the State Constitution. 13 (b) This subsection is subject to the Open Government 14 Sunset Review Act in accordance with s. 119.15 and shall stand 15 repealed on October 2, 2022, unless reviewed and saved from 16 repeal through reenactment by the Legislature. 17 (c) This exemption applies to records held before, on, or 18 after the effective date of this exemption. 19 Section 2. (1) The Legislature finds that it is a public 20 necessity to make exempt from s. 119.07(1), Florida Statutes, 21 and s. 24(a), Article I of the State Constitution the 22 description of an insurer’s anti-fraud education and training, 23 the description of an insurer’s anti-fraud investigative unit, 24 and an insurer’s rationale for the level of staffing and 25 resources it provides to the anti-fraud investigative unit as 26 required in s. 626.9891(3)(d), (e), and (f), Florida Statutes, 27 and filed with the Division of Investigative and Forensic 28 Services pursuant to s. 626.9891(2), Florida Statutes, and the 29 data collected and reported to the Division of Investigative and 30 Forensic Services pursuant to s. 626.9891(5)(d), (e), (f), (g), 31 and (k), Florida Statutes. 32 (2) The description of an insurer’s anti-fraud education 33 and training that assists in identifying and evaluating 34 instances of suspected fraudulent insurance acts, the 35 description of an insurer’s anti-fraud investigative unit, and 36 an insurer’s rationale for the level of staffing and resources 37 it provides to the anti-fraud investigative unit will allow the 38 Department of Financial Services to ensure that insurers have 39 adequate procedures in place to properly detect, investigate, 40 and report potential insurance fraud. The public disclosure of 41 this information would allow criminal elements to use such 42 information to identify fraud prevention or detection strategies 43 employed by insurers and use this information to commit 44 insurance fraud. The Legislature further finds that disclosure 45 of this information would allow persons suspected of fraud to be 46 alerted to a potential or ongoing investigation and alter 47 behavior to impede an investigation. To ensure the integrity of 48 such records already in the possession of the department, this 49 exemption is made retroactive in its application. 50 (3) The data submitted pursuant to s. 626.9891(5)(d), (e), 51 (f), (g), and (k), Florida Statutes, allow the department to 52 track and assess trends in insurance fraud in this state. Such 53 information includes the number of claims referred to the anti 54 fraud investigative unit, the number of matters referred to the 55 anti-fraud investigative unit which were not claim-related, the 56 number of claims investigated or accepted by the anti-fraud 57 investigative unit, the number of other insurance fraud matters 58 investigated or accepted by the anti-fraud investigative unit 59 which were not claim-related, and the estimated dollar amount or 60 range of damages on cases referred to the Division of 61 Investigative and Forensic Services or other agencies. The 62 public disclosure of this information could injure a business in 63 the marketplace by providing its competitors with detailed 64 insights into the claim investigation processes and statistics 65 of the company, thereby diminishing the advantage that the 66 business maintains over competitors that do not possess such 67 information. Without this exemption, insurers might refrain from 68 providing accurate and unbiased data, thus impairing the 69 department’s ability to track and assess insurance fraud in this 70 state. This data will allow insurance fraud investigators to 71 better track, predict, and curb fraud trends in this state by 72 providing access to data gathered by insurers’ anti-fraud 73 investigative units. Information regarding the amount of 74 insurance fraud experienced, referred, and addressed internally 75 will be valuable material for the department and will better 76 enable law enforcement agencies to assist state prosecutors in 77 the successful prosecution of fraudulent behavior. 78 Section 3. This act shall take effect on the same date that 79 CS/SB 1012 or similar legislation takes effect, if such 80 legislation is adopted in the same legislative session or an 81 extension thereof and becomes a law. 82 83 ================= T I T L E A M E N D M E N T ================ 84 And the title is amended as follows: 85 Delete everything before the enacting clause 86 and insert: 87 A bill to be entitled 88 An act relating to public records; amending s. 89 626.9891, F.S.; providing an exemption from public 90 records requirements for reports, documents, or other 91 information relating to the investigation and tracking 92 of insurance fraud submitted by insurers to the 93 Department of Financial Services; providing for future 94 legislative review and repeal of the exemption; 95 providing retroactive applicability; providing a 96 statement of public necessity; providing a contingent 97 effective date.