Florida Senate - 2026                                     SB 230
       
       
        
       By Senator Smith
       
       
       
       
       
       17-00288A-26                                           2026230__
    1                        A bill to be entitled                      
    2         An act relating to transparency in insurance matters;
    3         amending s. 624.4213, F.S.; defining the term “trade
    4         secret”; revising the requirements of a notice of
    5         trade secret submitted to the Office of Insurance
    6         Regulation or the Department of Financial Services;
    7         specifying that certain information is not a trade
    8         secret and is subject to public disclosure; requiring
    9         the office to review all claims of trade secret
   10         protection; requiring that certain claims of trade
   11         secret protection be denied; requiring the office to
   12         issue a written notice of denial of trade secret
   13         protection under certain circumstances; requiring the
   14         Financial Services Commission to contract with a
   15         certain independent third-party entity for a specified
   16         purpose; requiring that a certain reporting
   17         requirement be included in the contract; providing
   18         administrative fines; authorizing the office to
   19         suspend or revoke a person’s certificate of authority
   20         or license under certain circumstances; creating s.
   21         624.4214, F.S.; requiring that fees, commissions, and
   22         profit-sharing agreements between insurers and
   23         affiliates be filed with the office and made publicly
   24         accessible on the department’s website; providing an
   25         effective date.
   26          
   27  Be It Enacted by the Legislature of the State of Florida:
   28  
   29         Section 1. Present subsections (1), (2), and (3) of section
   30  624.4213, Florida Statutes, are redesignated as subsections (2),
   31  (3), and (4), respectively, a new subsection (1) and subsections
   32  (5) through (8) are added to that section, and present
   33  subsection (1) of that section is amended, to read:
   34         624.4213 Trade secret documents.—
   35         (1) As used in this section, the term “trade secret” has
   36  the same meaning as provided in s. 688.002.
   37         (2)(1) If any person who is required to submit documents or
   38  other information to the office or department pursuant to the
   39  insurance code or by rule or order of the office, department, or
   40  commission claims that such submission contains a trade secret,
   41  such person may file with the office or department a notice of
   42  trade secret as provided in this section. Failure to do so
   43  constitutes a waiver of any claim by such person that the
   44  document or information is a trade secret.
   45         (a) Each page of such document or specific portion of a
   46  document claimed to be a trade secret must be clearly marked as
   47  “trade secret.”
   48         (b) All material marked as a trade secret must be separated
   49  from all non-trade secret material, such as being submitted in a
   50  separate envelope clearly marked as “trade secret.”
   51         (c) In submitting a notice of trade secret to the office or
   52  department, the submitting party must include a sworn an
   53  affidavit that includes all certifying under oath to the truth
   54  of the following statements concerning all documents or
   55  information that are claimed to be trade secrets:
   56         1.The basis for the claim that the submission qualifies as
   57  a trade secret.
   58         2.A statement that all of the following are true:
   59         a.1. ...(I consider/My company considers)... this
   60  information a trade secret that has value and provides an
   61  advantage or an opportunity to obtain an advantage over those
   62  who do not know or use it.
   63         b.2. ...(I have/My company has)... taken measures to
   64  prevent the disclosure of the information to anyone other than
   65  those who have been selected to have access for limited
   66  purposes, and ...(I intend/my company intends)... to continue to
   67  take such measures.
   68         c.3. The information is not, and has not been, reasonably
   69  obtainable without ...(my/our)... consent by other persons by
   70  use of legitimate means.
   71         d.4. The information is not publicly available elsewhere,
   72  and the public release of such information would cause actual,
   73  demonstrable harm to ...(me/my company)....
   74         3.A summary prepared for the general public which
   75  describes the nature of the submission claimed to be a trade
   76  secret without disclosing the protected details of the
   77  submission.
   78         (5)The following information is not considered a trade
   79  secret and is subject to public disclosure:
   80         (a)Any financial information, including data, models, or
   81  assumptions, used in the calculation or justification of
   82  insurance rates.
   83         (b)All transactions between an insurer and any affiliate,
   84  including, but not limited to, fees, commissions, payments, or
   85  profit-sharing agreements with managing general agents, as
   86  defined in s. 626.015, claims handlers, reinsurers, or third
   87  party administrators.
   88         (c)Officer and employee compensation.
   89         (d)Dividends paid to shareholders.
   90         (e)Any information contained in rate filings.
   91         (f)Any information used to support or oppose proposed
   92  legislation.
   93         (g)The summary prepared in accordance with subparagraph
   94  (2)(c)3.
   95         (6)The office shall review all claims of trade secret
   96  protection submitted under this section. If the office or
   97  department determines that the information does not meet the
   98  definition of a trade secret under s. 688.002 or falls within
   99  the categories described in subsection (5), the claim must be
  100  denied and the office must issue a written notice of denial to
  101  the submitting party.
  102         (7)The commission shall, at least once every other year,
  103  contract with an independent third-party entity with expertise
  104  in insurance regulation to conduct an independent review of
  105  trade secret claims submitted under this section. The contract
  106  must require submission of a final report to the commission, the
  107  President of the Senate, and the Speaker of the House of
  108  Representatives by February 1 following the year in which a
  109  review is conducted which identifies any trade secret claim the
  110  third-party entity recommends be rejected by the commission.
  111         (8)A person who knowingly asserts a false claim of trade
  112  secret protection in order to conceal unlawful financial
  113  practices is subject to an administrative fine imposed by the
  114  office in an amount not to exceed $25,000 per violation. In
  115  addition, the office may suspend or revoke the person’s
  116  certificate of authority or license as provided in s. 624.418.
  117         Section 2. Section 624.4214, Florida Statutes, is created
  118  to read:
  119         624.4214 Public disclosure of affiliate financial
  120  arrangement.—All fees, commissions, and profit-sharing
  121  agreements between an insurer and its affiliates must be filed
  122  with the office and made publicly accessible on the department’s
  123  website.
  124         Section 3. This act shall take effect July 1, 2026.