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House Bill 1887c1

Florida House of Representatives - 1998 CS/HB 1887 By the Committee on Governmental Operations and Representative Ball 1 A bill to be entitled 2 An act relating to confidentiality of records 3 and meetings of the Florida Automobile Joint 4 Underwriting Association; amending s. 627.311, 5 F.S.; providing exemptions from public records 6 requirements for underwriting files, open claim 7 files, audit records for a specified time, 8 matters reasonably encompassed in privileged 9 attorney-client communications, licensed 10 proprietary information made confidential by 11 contract, certain employee medical records and 12 employee assistance programs records, certain 13 negotiation information for a specified time, 14 minutes of closed meetings regarding 15 underwriting files, and minutes of closed 16 meetings regarding claims files for a specified 17 time; providing requirements regarding sharing 18 of confidential records; providing an exemption 19 from public meetings requirements for meetings 20 during which underwriting files or open claims 21 files are discussed; providing requirements 22 regarding such closed meetings and records 23 thereof; providing for future review and 24 repeal; providing a finding of public 25 necessity; providing an effective date. 26 27 Be It Enacted by the Legislature of the State of Florida: 28 29 Section 1. Paragraph (l) is added to subsection (3) of 30 section 627.311, Florida Statutes, to read: 31 627.311 Joint underwriters and joint reinsurers.-- 1 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1998 CS/HB 1887 192-958-98 1 (3) The department may, after consultation with 2 insurers licensed to write automobile insurance in this state, 3 approve a joint underwriting plan for purposes of equitable 4 apportionment or sharing among insurers of automobile 5 liability insurance and other motor vehicle insurance, as an 6 alternate to the plan required in s. 627.351(1). All insurers 7 authorized to write automobile insurance in this state shall 8 subscribe to the plan and participate therein. The plan shall 9 be subject to continuous review by the department which may at 10 any time disapprove the entire plan or any part thereof if it 11 determines that conditions have changed since prior approval 12 and that in view of the purposes of the plan changes are 13 warranted. Any disapproval by the department shall be subject 14 to the provisions of chapter 120. If adopted, the plan and 15 the association created under the plan: 16 (l)1. Shall be subject to the public records 17 requirements of chapter 119 and the public meeting 18 requirements of s. 286.011. However, the following records of 19 the Florida Automobile Joint Underwriting Association are 20 confidential and exempt from s. 119.07(1) and s. 24(a), Art. I 21 of the State Constitution: 22 a. Underwriting files, except that a policyholder or 23 an applicant shall have access to his or her own underwriting 24 files. 25 b. Claims files, until termination of all litigation 26 and settlement of all claims arising out of the same incident, 27 although portions of the claims files may remain exempt, as 28 otherwise provided by law. Confidential and exempt claims 29 file records may be released to other governmental agencies 30 upon written request and demonstration of need; such records 31 2 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1998 CS/HB 1887 192-958-98 1 held by the receiving agency remain confidential and exempt as 2 provided by this paragraph. 3 c. Records obtained or generated by an internal 4 auditor pursuant to a routine audit, until the audit is 5 completed or, if the audit is conducted as part of an 6 investigation, until the investigation is closed or ceases to 7 be active. An investigation is considered "active" while the 8 investigation is being conducted with a reasonable, good-faith 9 belief that it could lead to the filing of administrative, 10 civil, or criminal proceedings. 11 d. Matters reasonably encompassed in privileged 12 attorney-client communications. 13 e. Proprietary information licensed to the association 14 under contract when the contract provides for the 15 confidentiality of such proprietary information. 16 f. All information relating to the medical condition 17 or medical status of an association employee which is not 18 revelant to the employee's capacity to perform his or her 19 duties, except as otherwise provided in this paragraph. 20 Information which is exempt shall include, but is not limited 21 to, information relating to workers' compensation, insurance 22 benefits, and retirement or disability benefits. 23 g. All records relative to an employee's participation 24 in an employee assistance program designed to assist any 25 employee who has a behavioral or medical disorder, substance 26 abuse problem, or emotional difficulty which affects the 27 employee's job performance, except as otherwise provided in s. 28 112.0455(11). 29 h. Information relating to negotiations for financing, 30 reinsurance, depopulation, or contractual services, until the 31 conclusion of the negotiations. 3 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1998 CS/HB 1887 192-958-98 1 i. Minutes of closed meetings regarding underwriting 2 files, and minutes of closed meetings regarding an open claims 3 file until termination of all litigation and settlement of all 4 claims with regard to that claim, except that information 5 otherwise confidential or exempt by law must be redacted. 6 7 When an authorized insurer is considering underwriting a risk 8 insured by the association, relevant underwriting files and 9 confidential claims files may be released to the insurer 10 provided the insurer agrees in writing, notarized and under 11 oath, to maintain the confidentiality of such files. When a 12 file is transferred to an insurer, that file is no longer a 13 public record because it is not held by an agency subject to 14 the provisions of the public records law. The association may 15 make the following information obtained from underwriting 16 files and confidential claims files available to licensed 17 general lines insurance agents: name, address, and telephone 18 number of the automobile owner or insured; location of the 19 risk; rating information; loss history; and policy type. The 20 receiving licensed general lines insurance agent must retain 21 the confidentiality of the information received. 22 2. Portions of meetings of the Florida Automobile 23 Joint Underwriting Association during which confidential 24 underwriting files or confidential open claims files are 25 discussed are exempt from the provisions of s. 286.011 and s. 26 24(b), Art. I of the State Constitution. All portions of 27 association meetings which are closed to the public shall be 28 recorded by a court reporter. The court reporter shall record 29 the times of commencement and termination of the meeting, all 30 discussion and proceedings, the names of all persons present 31 at any time, and the names of all persons speaking. No 4 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1998 CS/HB 1887 192-958-98 1 portion of any closed meeting shall be off the record. 2 Subject to the provisions of this paragraph and s. 3 119.07(2)(a), the court reporter's notes of any closed meeting 4 shall be retained by the association for a minimum of 5 years. 5 A copy of the transcript, less any exempt matters, of any 6 closed meeting during which claims are discussed shall become 7 public as to individual claims after settlement of the claim. 8 9 This paragraph is subject to the Open Government Sunset Review 10 Act of 1995 in accordance with s. 119.15, and shall stand 11 repealed on October 2, 2003, unless reviewed and saved from 12 repeal through reenactment by the Legislature. 13 Section 2. The Legislature finds that it is a public 14 necessity that certain records of the Florida Automobile Joint 15 Underwriting Association be held confidential and exempt. 16 Certain medical records of association employees must be held 17 confidential and exempt because they contain personal, 18 sensitive information regarding an employee's medical 19 condition, the disclosure of which would be harmful to the 20 employee. Likewise, underwriting files contain medical 21 information as well as private financial information regarding 22 insureds, the disclosure of which could be harmful to those 23 insureds. Additionally, such files contain proprietary 24 confidential business information. Accordingly, it is a 25 public necessity that those files, and meetings relating to 26 such files, be closed. Additionally, matters reasonably 27 encompassed in privileged attorney-client communications 28 should be held confidential and exempt because the release of 29 such information could jeopardize ongoing or pending 30 litigation or other business matters. Also, open claims files 31 records should be closed, as well as meetings concerning open 5 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1998 CS/HB 1887 192-958-98 1 claims files. If such records and meetings were not exempt, 2 claimants would have unfettered access to information held by 3 the association which could be used as evidence and for 4 purposes of negotiation, claim evaluation, and settlement 5 considerations, which would result in higher awards and 6 settlements paid out by the association and ultimately the 7 consumer. Records held by an internal auditor while an audit 8 is incomplete, or while an investigation is pending, should be 9 held confidential and exempt because otherwise possibly 10 inaccurate information would be released or investigations 11 jeopardized. Finally, it is a public necessity that 12 information relating to negotiations for financing, 13 reinsurance, depopulation, or contractual services be held 14 confidential and exempt. If such information were not 15 confidential and exempt, those with whom the association 16 contracted would have an economic advantage over the 17 association, thus driving up the costs of doing business, 18 which cost would be passed on to the consumer. 19 Section 3. This act shall take effect upon becoming a 20 law. 21 22 23 24 25 26 27 28 29 30 31 6