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.