Florida Senate - 2020 SB 1188
By Senator Albritton
26-00996A-20 20201188__
1 A bill to be entitled
2 An act relating to public records; creating s.
3 631.195, F.S.; defining the terms “consumer” and
4 “personal financial and health information”; exempting
5 from public records requirements consumer personal
6 financial and health information, certain underwriting
7 files, insurer personnel and payroll records, and
8 consumer claim files that are made or received by the
9 Department of Financial Services acting as receiver as
10 to an insurer; exempting from public records
11 requirements certain reports and documents held by the
12 department relating to insurer own-risk and solvency
13 assessments and corporate governance annual
14 disclosures and certain information received from the
15 National Association of Insurance Commissioners or
16 governments; providing retroactive applicability;
17 providing that exempted records may be released under
18 specified circumstances; providing for future
19 legislative review and repeal of the exemptions;
20 providing statements of public necessity; providing an
21 effective date.
22
23 Be It Enacted by the Legislature of the State of Florida:
24
25 Section 1. Section 631.195, Florida Statutes, is created to
26 read:
27 631.195 Records of insurers; public records exemptions.—
28 (1) As used in this section, the term:
29 (a) “Consumer” means a prospective purchaser of, a
30 purchaser of, a beneficiary of, or an applicant for any
31 insurance product or service. The term also includes a family
32 member or dependent of such person.
33 (b) “Personal financial and health information” means:
34 1. A consumer’s personal health condition, disease, or
35 injury;
36 2. A history of a consumer’s personal medical diagnosis or
37 treatment;
38 3. The existence, nature, source, or amount of a consumer’s
39 personal income or expenses;
40 4. Records of, or relating to, a consumer’s personal
41 financial transactions of any kind;
42 5. The existence, identification, nature, or value of a
43 consumer’s assets, liabilities, or net worth;
44 6. The existence or content of, or any individual coverage
45 or status under a consumer’s beneficial interest in, any
46 insurance policy or annuity contract; or
47 7. The existence, identification, nature, or value of a
48 consumer’s interest in any insurance policy, annuity contract,
49 or trust.
50 (2) The following records, in whatever form, of an insurer
51 which are made or received by the department, acting as receiver
52 pursuant to this chapter, are exempt from s. 119.07(1) and s.
53 24(a), Art. I of the State Constitution:
54 (a) All personal financial and health information of a
55 consumer.
56 (b) Underwriting files of a type customarily maintained by
57 an insurer transacting lines of insurance similar to those lines
58 transacted by the insurer.
59 (c) Personnel and payroll records of the insurer.
60 (d) Consumer claim files.
61 (3) The following records held by the department are
62 confidential and exempt from s. 119.07(1) and s. 24(a), Art. I
63 of the State Constitution:
64 (a) An ORSA summary report, a substantially similar ORSA
65 summary report, and supporting documents submitted to the office
66 pursuant to s. 628.8015.
67 (b) A corporate governance annual disclosure and supporting
68 documents submitted to the office pursuant to s. 628.8015.
69 (c) Information received from the National Association of
70 Insurance Commissioners, a governmental entity in this or
71 another state, the Federal Government, or a government of
72 another nation which is confidential or exempt if held by that
73 entity and which is held by the department for use in the
74 performance of its duties relating to insurer solvency.
75 (4) The exemptions in subsections (2) and (3) apply to
76 records held by the department before, on, and after July 1,
77 2020.
78 (5) Records or portions of records made confidential and
79 exempt by this section may be released under any of the
80 following circumstances:
81 (a) To any state or federal agency, upon written request,
82 if disclosure is necessary for the receiving entity to perform
83 its duties and responsibilities. The receiving agency shall
84 maintain the confidential and exempt status of such record or
85 portion of such record.
86 (b) To comply with a properly authorized civil, criminal,
87 or regulatory investigation or a subpoena or summons by a
88 federal, state, or local authority.
89 (c) To the National Association of Insurance Commissioners
90 and its affiliates and subsidiaries, if the recipient agrees in
91 writing to maintain the confidential and exempt status of the
92 records.
93 (d) To the guaranty associations and funds of the various
94 states which are receiving, adjudicating, and paying claims of
95 the insolvent insurer subject to delinquency proceedings
96 pursuant to this chapter. The receiving guaranty association
97 shall maintain the confidential and exempt status of such record
98 or portion of such record.
99 (e) Upon written request, to persons identified as
100 designated employees as described in s. 626.989(4)(d), whose
101 responsibilities include the investigation and disposition of
102 claims relating to suspected fraudulent insurance acts.
103 (f) In the case of personal financial and health
104 information of a consumer, upon written request of the consumer
105 or the consumer’s legally authorized representative.
106 (6) This section is subject to the Open Government Sunset
107 Review Act in accordance with s. 119.15 and shall stand repealed
108 on October 2, 2025, unless reviewed and saved from repeal
109 through reenactment by the Legislature.
110 Section 2. (1) The Legislature finds it is a public
111 necessity to exempt from s. 119.07(1), Florida Statutes, and s.
112 24(a), Article I of the State Constitution all personal
113 financial and health information of a consumer, underwriting
114 files of a type customarily maintained by an insurer transacting
115 lines of insurance similar to those lines transacted by the
116 insurer, personnel and payroll records of an insurer, and
117 consumer claim files that are made or received by the Department
118 of Financial Services acting as receiver as to an insurer.
119 Disclosure of financial, health, underwriting, personnel,
120 payroll, or consumer claim information would create the
121 opportunity for theft or fraud, thereby jeopardizing the
122 financial security of a person. Limiting disclosure of such
123 information held by the department is also necessary in order to
124 protect the financial interests of the persons to whom that
125 information pertains. Such information could be used for
126 fraudulent or other illegal purposes, including identity theft,
127 and could result in substantial financial harm. Furthermore,
128 every person has an expectation of and a right to privacy in all
129 matters concerning his or her financial interests. The
130 Legislature further finds that it is a public necessity that
131 health information held by the department be made confidential
132 and exempt because matters of personal health are traditionally
133 private and confidential concerns between the patient and his or
134 her health care provider. The private and confidential nature of
135 personal health matters pervades both the public and private
136 health care sectors. Moreover, public disclosure of health
137 information could have a negative effect upon a person’s
138 business and personal relationships and could also have
139 detrimental financial consequences.
140 (2)(a) The Legislature further finds that it is a public
141 necessity to exempt from s. 119.07(1), Florida Statutes, and s.
142 24(a), Article I of the State Constitution the following records
143 held by the department:
144 1. An own-risk and solvency assessment (ORSA) summary
145 report, a substantially similar ORSA summary report, and
146 supporting documents submitted to the Office of Insurance
147 Regulation pursuant to s. 628.8015, Florida Statutes;
148 2. A corporate governance annual disclosure and supporting
149 documents submitted to the office pursuant to s. 628.8015,
150 Florida Statutes; and
151 3. Information received from the National Association of
152 Insurance Commissioners, a governmental entity in this or
153 another state, the Federal Government, or a government of
154 another nation which is confidential or exempt if held by that
155 entity and which is held by the department for use in the
156 performance of its duties relating to insurer solvency.
157 (b) In conducting an ORSA, an insurer or insurance group
158 identifies and evaluates the material and relevant risks to the
159 insurer or insurance group and the adequacy of capital resources
160 to support these risks. The ORSA summary report, substantially
161 similar ORSA report, and supporting documents contain highly
162 sensitive and strategic financial information about an insurer
163 or insurer group. Having a comprehensive and unbiased assessment
164 provides the office with an effective early warning mechanism
165 for preventing insolvencies and protecting policyholders and
166 promotes a stable insurance market. Divulging the ORSA summary
167 report, substantially similar ORSA summary report, and
168 supporting documents will injure the insurer or insurance group
169 by providing competitors with detailed insight into their
170 financial position, risk management strategies, business plans,
171 pricing and marketing strategies, management systems, and
172 operational protocols.
173 (c) The corporate governance annual disclosure describes an
174 insurer’s governance structure and the internal practices and
175 procedures used in conducting the business affairs of the
176 company, making strategic operational decisions affecting its
177 competitive position, and managing its financial condition.
178 Release of the corporate governance annual disclosure and
179 supporting documents will injure the insurer or insurance group
180 in the marketplace by providing competitors with the insurer’s
181 or the insurance group’s confidential business information.
182 Broad disclosure will give state regulators a thorough
183 understanding of the corporate governance structure and internal
184 policies and practices used by insurers and promote market
185 integrity. Effective governance mechanisms will enable insurers
186 to take any necessary corrective actions and achieve strategic
187 goals while allowing the office to perform its regulatory duties
188 effectively and efficiently.
189 (d) Divulgence of confidential or exempt information
190 received from the National Association of Insurance
191 Commissioners or governments could impede the exchange of
192 information and communication among regulators across multiple
193 agencies and jurisdictions and jeopardize the ability of
194 regulators to effectively supervise insurers and groups
195 operating in multiple jurisdictions and engaged in significant
196 cross-border activities.
197 Section 3. This act shall take effect July 1, 2020.