House Bill hb1103

    Florida House of Representatives - 2001                HB 1103

        By Representative Gannon






  1                      A bill to be entitled

  2         An act relating to public records; creating s.

  3         631.195, F.S.; providing an exemption from

  4         public records requirements for certain records

  5         that come into the Department of Insurance's

  6         possession pursuant to insurer receivership

  7         proceedings; providing for future review and

  8         repeal; providing a finding of public

  9         necessity; providing a contingent effective

10         date.

11

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

13

14         Section 1.  Section 631.195, Florida Statutes, is

15  created to read:

16         631.195  Records of insurers in receivership.--

17         (1)  The following records shall be confidential and

18  exempt from the provisions of s. 119.07(1) and s. 24(a), Art.

19  I of the State Constitution:

20         (a)  Records in whatever form generated or maintained

21  by an entity subjected to receivership proceedings, including,

22  but not limited to, correspondence, underwriting files, claims

23  files, financial records, personnel records, payroll records,

24  manuals, promotional material, tax returns, internal audit

25  records, computer files, audio and sound recordings, customer

26  lists, contracts, bank records, memoranda, checks, or other

27  records that come into the custody of the department pursuant

28  to the provisions of this chapter. However, such records shall

29  not be confidential and exempt if they would have been subject

30  to public scrutiny in the hands of the entity itself absent

31  the receivership proceedings.

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    Florida House of Representatives - 2001                HB 1103

    761-104-01






  1         (b)  Claim file records relating to any entity

  2  undergoing receivership proceedings, whether or not the claim

  3  is currently in litigation, and all correspondence, memoranda,

  4  research, reports, notes, draft pleadings, legal bills,

  5  electronic mail, or other documents generated or collected in

  6  connection with current or prior litigation by or against the

  7  receivership estate or its predecessor in interest, except for

  8  items filed with courts or public bodies other than the

  9  department in its receivership capacity; however, such records

10  shall not be exempt and confidential after the receivership is

11  terminated and all appellate or posttrial litigation, in any

12  forum, involving the receivership has concluded.  However, the

13  department may furnish any such confidential record to a law

14  enforcement agency with or without subpoena, and materials so

15  furnished shall retain their confidential character and shall

16  be inadmissible in any civil proceedings involving the

17  department in its receivership capacity unless the department

18  expressly agrees to their admission.

19         (2)  Documents generated by the department in its

20  administration of the estate not included in paragraph (1)(b)

21  shall be public records according to the laws of this state

22  unless covered by another exemption.

23         (3)  This section is subject to the Open Government

24  Sunset Review Act of 1995 in accordance with s. 119.15, and

25  shall stand repealed on October 2, 2006, unless reviewed and

26  saved from repeal through reenactment by the Legislature.

27         Section 2.  The Legislature finds that there is a

28  public necessity that certain records of insurers that come

29  into the department's possession when it becomes a receiver

30  pursuant to the provisions of chapter 631, Florida Statutes,

31  be withheld from public inspection or disclosure. An insurer,

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    Florida House of Representatives - 2001                HB 1103

    761-104-01






  1  prior to the institution of delinquency proceedings, is a

  2  private entity entrusted with highly confidential information

  3  of its policyholders and claimants.  This confidentiality,

  4  which was fully expected by persons who furnished the

  5  information to the insurer or consented to its collection by

  6  the insurer, should not be forfeited by the insured when,

  7  through no fault of the insured, the insurer becomes insolvent

  8  and is placed in receivership.  Such a result would violate

  9  the right to privacy which Florida has explicitly recognized.

10  Further, there is no logical reason that clearly private

11  information in the possession of a private business should

12  become public record merely because the entity holding same

13  has become insolvent.  The receiver may also be able to obtain

14  recoveries by selling off proprietary assets which would

15  become valueless if made public.

16         Section 3.  This act shall take effect October 1, 2001,

17  if HB .... or similar legislation is adopted in the same

18  legislative session or an extension thereof and becomes law.

19

20            *****************************************

21                          HOUSE SUMMARY

22
      Provides an exemption from public records requirements
23    for records that come into the possession of the
      Department of Insurance during insurer receivership
24    proceedings. Provides for future review and repeal.

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