Senate Bill 1302

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    Florida Senate - 1999                                  SB 1302

    By Senator Geller





    29-1175-99

  1                      A bill to be entitled

  2         An act relating to public records; providing an

  3         exemption from public records requirements for

  4         certain documents in possession of the

  5         Department of Insurance and the Department of

  6         Legal Affairs; providing for future review and

  7         repeal; providing a finding of public

  8         necessity; providing an effective date.

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10  Be It Enacted by the Legislature of the State of Florida:

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12         Section 1.  Except as otherwise provided in this

13  section, any documents or compilation of documents or other

14  records of any medium which are provided voluntarily by an

15  insurer to the Department of Insurance or the Department of

16  Legal Affairs, or in conjunction with an investigation or

17  examination of the insurer's conduct by the Department of

18  Insurance or the Department of Legal Affairs, are confidential

19  and exempt from the provisions of section 119.07(1), Florida

20  Statutes, and s. 24(a), Art. I of the State Constitution if

21  such documents were prepared by the insurer at the request of

22  counsel as part of the insurer's program to monitor and

23  enhance compliance with provisions of Florida Statutes or

24  administrative rules for which the Department of Insurance or

25  the Department of Legal Affairs have regulatory or enforcement

26  authority. This exemption does not apply to documents or

27  records if there is a final determination after exhaustion of

28  appeals that the insurer was guilty of a conscious disregard

29  of the illegality of actions taken after preparation of the

30  document, and if there is a determination by a court that

31  illegal conduct described in the document is ongoing in spite

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    Florida Senate - 1999                                  SB 1302
    29-1175-99




  1  of an administrative determination of such illegality and that

  2  without public disclosure such ongoing conduct creates danger

  3  to the public health, safety, or welfare. This section is

  4  repealed July 1, 2004, and must be reviewed by the Legislature

  5  before that date in accordance with section 119.15, Florida

  6  Statutes.

  7         Section 2.  The Legislature finds that there is great

  8  public necessity that insurers, under the direction and

  9  supervision of counsel, establish and implement programs to

10  examine their conduct and operations in order to detect

11  failure to comply with law, monitor company conduct to assure

12  compliance with law, and correct violations that may be

13  discovered; and that insurers are presently deterred from

14  implementing such plans by the fear that documents and other

15  records that are created pursuant to such plans will become

16  public records under circumstances in which disclosure will

17  impair the value of trade secrets, impair the reputation of

18  the insurer, and expose the insurer to public ridicule and

19  litigation, none of which would have occurred but for

20  implementation of the compliance program and preparation of

21  these documents. Moreover, there is public need to enhance the

22  ability of the Department of Insurance to regulate insurer

23  conduct by encouraging insurance companies to conduct

24  compliance audits and to disclose the results and documents

25  pertaining to such audits with the department for the

26  department's use in regulating, investigating, and examining

27  the insurer's affairs. Further, the Legislature finds that

28  present law recognizes the rights of insurers to maintain

29  confidentiality of internal documents by allowing the

30  Department of Insurance, during examinations, to review them

31  in the custody of the insurer without taking them from that

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    Florida Senate - 1999                                  SB 1302
    29-1175-99




  1  custody, and this review does not cause those internal

  2  documents to become public records. The Legislature finds that

  3  the department will be able to monitor and examine the conduct

  4  of insurers better if insurers are free to provide to the

  5  department documents prepared as a part of such compliance

  6  programs without fear that they will be making public any

  7  information that would not otherwise come into the

  8  department's possession.

  9         Section 3.  This act shall take effect July 1, 1999.

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12                          SENATE SUMMARY

13    Provides an exemption from public records requirements of
      documents provided by an insurer voluntarily to the
14    Department of Insurance or the Department of Legal
      Affairs, or provided in conjunction with an investigation
15    or examination of the insurer's conduct under certain
      conditions. Provides for future review and repeal.
16    Provides a statement of public necessity.

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