Florida Senate - 2020                        COMMITTEE AMENDMENT
       Bill No. SB 1188
       
       
       
       
       
       
                                Ì4922566Î492256                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  02/03/2020           .                                
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       The Committee on Governmental Oversight and Accountability
       (Albritton) recommended the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         
    6         Section 1. Section 631.195, Florida Statutes, is created to
    7  read:
    8         631.195 Records of insurers; public records exemptions.—
    9         (1)As used in this section, the term:
   10         (a)“Consumer” means a prospective purchaser of, a
   11  purchaser of, a beneficiary of, or an applicant for any
   12  insurance product or service. The term also includes a family
   13  member or dependent of such person.
   14         (b)“Personal financial and health information” means:
   15         1.A consumer’s personal health condition, disease, or
   16  injury;
   17         2.A history of a consumer’s personal medical diagnosis or
   18  treatment;
   19         3.The existence, nature, source, or amount of a consumer’s
   20  personal income or expenses;
   21         4.Records of, or relating to, a consumer’s personal
   22  financial transactions of any kind;
   23         5.The existence, identification, nature, or value of a
   24  consumer’s assets, liabilities, or net worth;
   25         6.The existence or content of, or any individual coverage
   26  or status under a consumer’s beneficial interest in, any
   27  insurance policy or annuity contract; or
   28         7.The existence, identification, nature, or value of a
   29  consumer’s interest in any insurance policy, annuity contract,
   30  or trust.
   31         (2)The following records, in whatever form, of an insurer
   32  which are made or received by the department, acting as receiver
   33  pursuant to this chapter, are confidential and exempt from s.
   34  119.07(1) and s. 24(a), Art. I of the State Constitution:
   35         (a)All personal financial and health information of a
   36  consumer.
   37         (b)Underwriting files of a type customarily maintained by
   38  an insurer transacting lines of insurance similar to those lines
   39  transacted by the insurer.
   40         (c)Personnel and payroll records of the insurer.
   41         (d)Consumer claim files.
   42         (e)An ORSA summary report, a substantially similar ORSA
   43  summary report, and supporting documents submitted to the office
   44  pursuant to s. 628.8015.
   45         (f)A corporate governance annual disclosure and supporting
   46  documents submitted to the office pursuant to s. 628.8015.
   47         (g)Information received from the National Association of
   48  Insurance Commissioners, a governmental entity in this or
   49  another state, the Federal Government, or a government of
   50  another nation which is confidential or exempt if held by that
   51  entity and which is held by the department for use in the
   52  performance of its duties relating to insurer solvency.
   53         (3)The exemptions in subsection (2) applies to records
   54  held by the department before, on, and after July 1, 2020.
   55         (4)Records or portions of records made confidential and
   56  exempt by this section may be released under any of the
   57  following circumstances:
   58         (a)To any state or federal agency, upon written request,
   59  if disclosure is necessary for the receiving entity to perform
   60  its duties and responsibilities. The receiving agency shall
   61  maintain the confidential and exempt status of such record or
   62  portion of such record.
   63         (b)To comply with a properly authorized civil, criminal,
   64  or regulatory investigation or a subpoena or summons by a
   65  federal, state, or local authority.
   66         (c)To the National Association of Insurance Commissioners
   67  and its affiliates and subsidiaries, if the recipient agrees in
   68  writing to maintain the confidential and exempt status of the
   69  records.
   70         (d)To the guaranty associations and funds of the various
   71  states which are receiving, adjudicating, and paying claims of
   72  the insolvent insurer subject to delinquency proceedings
   73  pursuant to this chapter. The receiving guaranty association
   74  shall maintain the confidential and exempt status of such record
   75  or portion of such record.
   76         (e)Upon written request, to persons identified as
   77  designated employees as described in s. 626.989(4)(d), whose
   78  responsibilities include the investigation and disposition of
   79  claims relating to suspected fraudulent insurance acts.
   80         (f)In the case of personal financial and health
   81  information of a consumer, upon written request of the consumer
   82  or the consumer’s legally authorized representative.
   83         (5)This section is subject to the Open Government Sunset
   84  Review Act in accordance with s. 119.15 and shall stand repealed
   85  on October 2, 2025, unless reviewed and saved from repeal
   86  through reenactment by the Legislature.
   87         Section 2. (1)The Legislature finds it is a public
   88  necessity to make confidential and exempt from s. 119.07(1),
   89  Florida Statutes, and s. 24(a), Article I of the State
   90  Constitution:
   91         1. All personal financial and health information of a
   92  consumer;
   93         2. Underwriting files of a type customarily maintained by
   94  an insurer transacting lines of insurance similar to those lines
   95  transacted by the insurer;
   96         3. Personnel and payroll records of an insurer;
   97         4. Consumer claim files;
   98         5.An own-risk and solvency assessment (ORSA) summary
   99  report, a substantially similar ORSA summary report, and
  100  supporting documents submitted to the Office of Insurance
  101  Regulation pursuant to s. 628.8015, Florida Statutes;
  102         6.A corporate governance annual disclosure and supporting
  103  documents submitted to the office pursuant to s. 628.8015,
  104  Florida Statutes; and
  105         7.Information received from the National Association of
  106  Insurance Commissioners, a governmental entity in this or
  107  another state, the Federal Government, or a government of
  108  another nation which is confidential or exempt if held by that
  109  entity and which is held by the department for use in the
  110  performance of its duties relating to insurer solvency.
  111         (2)(a)Disclosure of financial, health, underwriting,
  112  personnel, payroll, or consumer claim information would create
  113  the opportunity for theft or fraud, thereby jeopardizing the
  114  financial security of a person. Limiting disclosure of such
  115  information held by the department is also necessary in order to
  116  protect the financial interests of the persons to whom that
  117  information pertains. Such information could be used for
  118  fraudulent or other illegal purposes, including identity theft,
  119  and could result in substantial financial harm. Furthermore,
  120  every person has an expectation of and a right to privacy in all
  121  matters concerning his or her financial interests. Additionally,
  122  matters of personal health are traditionally private and
  123  confidential concerns between the patient and his or her health
  124  care provider. The private and confidential nature of personal
  125  health matters pervades both the public and private health care
  126  sectors. Public disclosure of health information could have a
  127  negative effect upon a person’s business and personal
  128  relationships and could also have detrimental financial
  129  consequences.
  130         (b)In conducting an ORSA, an insurer or insurance group
  131  identifies and evaluates the material and relevant risks to the
  132  insurer or insurance group and the adequacy of capital resources
  133  to support these risks. The ORSA summary report, substantially
  134  similar ORSA report, and supporting documents contain highly
  135  sensitive and strategic financial information about an insurer
  136  or insurer group. Having a comprehensive and unbiased assessment
  137  provides the office with an effective early warning mechanism
  138  for preventing insolvencies and protecting policyholders and
  139  promotes a stable insurance market. Divulging the ORSA summary
  140  report, substantially similar ORSA summary report, and
  141  supporting documents will injure the insurer or insurance group
  142  by providing competitors with detailed insight into their
  143  financial position, risk management strategies, business plans,
  144  pricing and marketing strategies, management systems, and
  145  operational protocols.
  146         (c)The corporate governance annual disclosure describes an
  147  insurer’s governance structure and the internal practices and
  148  procedures used in conducting the business affairs of the
  149  company, making strategic operational decisions affecting its
  150  competitive position, and managing its financial condition.
  151  Release of the corporate governance annual disclosure and
  152  supporting documents will injure the insurer or insurance group
  153  in the marketplace by providing competitors with the insurer’s
  154  or the insurance group’s confidential business information.
  155  Broad disclosure will give state regulators a thorough
  156  understanding of the corporate governance structure and internal
  157  policies and practices used by insurers and promote market
  158  integrity. Effective governance mechanisms will enable insurers
  159  to take any necessary corrective actions and achieve strategic
  160  goals while allowing the office to perform its regulatory duties
  161  effectively and efficiently.
  162         (d)Divulgence of confidential or exempt information
  163  received from the National Association of Insurance
  164  Commissioners or governments could impede the exchange of
  165  information and communication among regulators across multiple
  166  agencies and jurisdictions and jeopardize the ability of
  167  regulators to effectively supervise insurers and groups
  168  operating in multiple jurisdictions and engaged in significant
  169  cross-border activities.
  170         (3) The legislature finds that the harm that may result
  171  from the release of such location information outweighs any
  172  public benefit that may be derived from the disclosure of the
  173  information.
  174         Section 3. This act shall take effect July 1, 2020.
  175  
  176  ================= T I T L E  A M E N D M E N T ================
  177  And the title is amended as follows:
  178         Delete everything before the enacting clause
  179  and insert:
  180                        A bill to be entitled                      
  181         An act relating to public records; creating s.
  182         631.195, F.S.; defining the terms “consumer” and
  183         “personal financial and health information”; exempting
  184         from public records requirements when made or received
  185         by the Department of Financial Services acting as
  186         receiver as to an insurer: consumer personal financial
  187         and health information, certain underwriting files,
  188         insurer personnel and payroll records, consumer claim
  189         files, certain reports and documents held by the
  190         department relating to insurer own-risk, solvency
  191         assessments, corporate governance annual disclosures,
  192         and certain information received from the National
  193         Association of Insurance Commissioners or governments;
  194         providing retroactive applicability; providing that
  195         exempted records may be released under specified
  196         circumstances; providing for future legislative review
  197         and repeal of the exemptions; providing statements of
  198         public necessity; providing an effective date.