Florida Senate - 2020                      CS for CS for SB 1188
       
       
        
       By the Committees on Rules; and Governmental Oversight and
       Accountability; and Senator Albritton
       
       
       
       
       595-03947-20                                          20201188c2
    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”; providing
    5         an exemption from public records requirements for
    6         consumer personal financial and health information,
    7         certain underwriting files, insurer personnel and
    8         payroll records, consumer claim files, certain reports
    9         and documents relating to insurer own-risk and
   10         solvency assessments and corporate governance annual
   11         disclosures, and certain information received from the
   12         National Association of Insurance Commissioners or
   13         governments, in records made or received by the
   14         Department of Financial Services acting as receiver as
   15         to an insurer; providing retroactive applicability of
   16         the exemptions; authorizing the release of
   17         confidential and exempt information under specified
   18         circumstances; providing for future legislative review
   19         and repeal of the exemptions; providing statements of
   20         public necessity; providing an effective date.
   21          
   22  Be It Enacted by the Legislature of the State of Florida:
   23  
   24         Section 1. Section 631.195, Florida Statutes, is created to
   25  read:
   26         631.195 Records of insurers; public records exemptions.—
   27         (1) As used in this section, the term:
   28         (a) “Consumer” means a prospective purchaser of, a
   29  purchaser of, a beneficiary of, or an applicant for any
   30  insurance product or service. The term also includes a family
   31  member or dependent of such person.
   32         (b) “Personal financial and health information” means:
   33         1. A consumer’s personal health condition, disease, or
   34  injury;
   35         2. A history of a consumer’s personal medical diagnosis or
   36  treatment;
   37         3. The existence, nature, source, or amount of a consumer’s
   38  personal income or expenses;
   39         4. Records of, or relating to, a consumer’s personal
   40  financial transactions of any kind;
   41         5. The existence, identification, nature, or value of a
   42  consumer’s assets, liabilities, or net worth;
   43         6. The existence or content of, or any individual coverage
   44  or status under a consumer’s beneficial interest in, any
   45  insurance policy or annuity contract; or
   46         7. The existence, identification, nature, or value of a
   47  consumer’s interest in any insurance policy, annuity contract,
   48  or trust.
   49         (2) The following records, in whatever form, of an insurer
   50  which are made or received by the department, acting as receiver
   51  pursuant to this chapter, are confidential and exempt from s.
   52  119.07(1) and s. 24(a), Art. I of the State Constitution:
   53         (a) All personal financial and health information of a
   54  consumer.
   55         (b) Underwriting files of a type customarily maintained by
   56  an insurer transacting lines of insurance similar to those lines
   57  transacted by the insurer.
   58         (c) Personnel and payroll records of the insurer.
   59         (d) Consumer claim files.
   60         (e) An ORSA summary report, a substantially similar ORSA
   61  summary report, and supporting documents submitted to the office
   62  pursuant to s. 628.8015.
   63         (f) A corporate governance annual disclosure and supporting
   64  documents submitted to the office pursuant to s. 628.8015.
   65         (g) Information received from the National Association of
   66  Insurance Commissioners, a governmental entity in this or
   67  another state, the Federal Government, or a government of
   68  another nation which is confidential or exempt if held by that
   69  entity and which is held by the department for use in the
   70  performance of its duties relating to insurer solvency.
   71         (3) The exemptions in subsection (2) apply to records held
   72  by the department before, on, and after July 1, 2020.
   73         (4) Records or portions of records made confidential and
   74  exempt by this section may be released under any of the
   75  following circumstances:
   76         (a) To any state or federal agency, upon written request,
   77  if disclosure is necessary for the receiving entity to perform
   78  its duties and responsibilities. The receiving agency shall
   79  maintain the confidential and exempt status of such record or
   80  portion of such record.
   81         (b) To comply with a properly authorized civil, criminal,
   82  or regulatory investigation or a subpoena or summons by a
   83  federal, state, or local authority.
   84         (c) To the National Association of Insurance Commissioners
   85  and its affiliates and subsidiaries, if the recipient agrees in
   86  writing to maintain the confidential and exempt status of the
   87  records.
   88         (d) To the guaranty associations and funds of the various
   89  states which are receiving, adjudicating, and paying claims of
   90  the insolvent insurer subject to delinquency proceedings
   91  pursuant to this chapter. The receiving guaranty association
   92  shall maintain the confidential and exempt status of such record
   93  or portion of such record.
   94         (e) Upon written request, to persons identified as
   95  designated employees as described in s. 626.989(4)(d), whose
   96  responsibilities include the investigation and disposition of
   97  claims relating to suspected fraudulent insurance acts.
   98         (f) In the case of personal financial and health
   99  information of a consumer, upon written request of the consumer
  100  or the consumer’s legally authorized representative.
  101         (5) This section is subject to the Open Government Sunset
  102  Review Act in accordance with s. 119.15 and shall stand repealed
  103  on October 2, 2025, unless reviewed and saved from repeal
  104  through reenactment by the Legislature.
  105         Section 2. (1) The Legislature finds it is a public
  106  necessity to make confidential and exempt from s. 119.07(1),
  107  Florida Statutes, and s. 24(a), Article I of the State
  108  Constitution:
  109         (a)All personal financial and health information of a
  110  consumer;
  111         (b)Underwriting files of a type customarily maintained by
  112  an insurer transacting lines of insurance similar to those lines
  113  transacted by the insurer;
  114         (c)Personnel and payroll records of an insurer;
  115         (d)Consumer claim files;
  116         (e) An own-risk and solvency assessment (ORSA) summary
  117  report, a substantially similar ORSA summary report, and
  118  supporting documents submitted to the Office of Insurance
  119  Regulation pursuant to s. 628.8015, Florida Statutes;
  120         (f) A corporate governance annual disclosure and supporting
  121  documents submitted to the office pursuant to s. 628.8015,
  122  Florida Statutes; and
  123         (g) Information received from the National Association of
  124  Insurance Commissioners, a governmental entity in this or
  125  another state, the Federal Government, or a government of
  126  another nation which is confidential or exempt if held by that
  127  entity and which is held by the Department of Financial Services
  128  for use in the performance of its duties relating to insurer
  129  solvency.
  130         (2)(a)Disclosure of financial, health, underwriting,
  131  personnel, payroll, or consumer claim information would create
  132  the opportunity for theft or fraud, thereby jeopardizing the
  133  financial security of a person. Limiting disclosure of such
  134  information held by the department is also necessary in order to
  135  protect the financial interests of the persons to whom that
  136  information pertains. Such information could be used for
  137  fraudulent or other illegal purposes, including identity theft,
  138  and could result in substantial financial harm. Furthermore,
  139  every person has an expectation of and a right to privacy in all
  140  matters concerning his or her financial interests. Additionally,
  141  matters of personal health are traditionally private and
  142  confidential concerns between the patient and his or her health
  143  care provider. The private and confidential nature of personal
  144  health matters pervades both the public and private health care
  145  sectors. Public disclosure of health information could have a
  146  negative effect upon a person’s business and personal
  147  relationships and could also have detrimental financial
  148  consequences.
  149         (b) In conducting an ORSA, an insurer or insurance group
  150  identifies and evaluates the material and relevant risks to the
  151  insurer or insurance group and the adequacy of capital resources
  152  to support these risks. The ORSA summary report, substantially
  153  similar ORSA report, and supporting documents contain highly
  154  sensitive and strategic financial information about an insurer
  155  or insurer group. Having a comprehensive and unbiased assessment
  156  provides the office with an effective early warning mechanism
  157  for preventing insolvencies and protecting policyholders and
  158  promotes a stable insurance market. Divulging the ORSA summary
  159  report, substantially similar ORSA summary report, and
  160  supporting documents will injure the insurer or insurance group
  161  by providing competitors with detailed insight into their
  162  financial position, risk management strategies, business plans,
  163  pricing and marketing strategies, management systems, and
  164  operational protocols.
  165         (c) The corporate governance annual disclosure describes an
  166  insurer’s governance structure and the internal practices and
  167  procedures used in conducting the business affairs of the
  168  company, making strategic operational decisions affecting its
  169  competitive position, and managing its financial condition.
  170  Release of the corporate governance annual disclosure and
  171  supporting documents will injure the insurer or insurance group
  172  in the marketplace by providing competitors with the insurer’s
  173  or the insurance group’s confidential business information.
  174  Broad disclosure will give state regulators a thorough
  175  understanding of the corporate governance structure and internal
  176  policies and practices used by insurers and promote market
  177  integrity. Effective governance mechanisms will enable insurers
  178  to take any necessary corrective actions and achieve strategic
  179  goals while allowing the office to perform its regulatory duties
  180  effectively and efficiently.
  181         (d) Divulgence of confidential or exempt information
  182  received from the National Association of Insurance
  183  Commissioners or governments could impede the exchange of
  184  information and communication among regulators across multiple
  185  agencies and jurisdictions and jeopardize the ability of
  186  regulators to effectively supervise insurers and groups
  187  operating in multiple jurisdictions and engaged in significant
  188  cross-border activities.
  189         (3)The Legislature finds that the harm that may result
  190  from the release of such information outweighs any public
  191  benefit that may be derived from the disclosure of the
  192  information.
  193         Section 3. This act shall take effect July 1, 2020.