Senate Bill sb1458

    Florida Senate - 2001                                  SB 1458

    By Senator Klein





    28-1260-01

  1                      A bill to be entitled

  2         An act relating to public records; creating s.

  3         631.195, F.S.; exempting certain records that

  4         come into the possession of the Department of

  5         Insurance pursuant to insurer receivership

  6         proceedings from inspection or disclosure as

  7         public records in order to protect the privacy

  8         interests of insureds; providing for future

  9         review and repeal; providing a finding of

10         public necessity; providing an effective date.

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

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14         Section 1.  Section 631.195, Florida Statutes, is

15  created to read:

16         631.195  Records of insurers in receivership.--The

17  following records are confidential and exempt from the

18  provisions of s. 119.07(1) and S. 24(A), Art. I of the State

19  Constitution:

20         (1)  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 are

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

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

31  receivership proceedings.

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    Florida Senate - 2001                                  SB 1458
    28-1260-01




  1         (2)  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 document 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  are not exempt and confidential after the receivership is

11  terminated and all appellate or post-trial litigation, in any

12  forum, involving the receivership has concluded. The

13  department may furnish any such confidential record to a law

14  enforcement agency with or without subpoena, and any material

15  so furnished retains its confidential character and is

16  inadmissible in any civil proceedings involving the department

17  in its receivership capacity unless the department expressly

18  agrees to its admission.

19         (3)  Documents generated by the department in its

20  administration of the estate which are not covered by

21  subsection (2) are "public records" according to the laws of

22  this state unless covered by another exemption.

23         (4)  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 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 which come

29  into the possession of the Department of Insurance when it

30  becomes a receiver under chapter 631, Florida Statutes, be

31  withheld from public inspection or disclosure because an

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    Florida Senate - 2001                                  SB 1458
    28-1260-01




  1  insurer, prior to the institution of delinquency proceedings,

  2  is a private entity entrusted with highly confidential

  3  information concerning its policyholders and claimants. This

  4  confidentiality, which was fully expected by the persons who

  5  furnished the information to the insurer or consented to its

  6  collection by the insurer, should not be forfeited by the

  7  insured when, through no fault of the insured, the insurer

  8  becomes insolvent and is placed in receivership. Such a result

  9  would violate the right to privacy which is explicitly

10  recognized in this state. Furthermore, there is no logical

11  reason why clearly private information in the possession of a

12  private business should become public record merely because

13  the entity holding the information has become insolvent. The

14  receiver may also be able to obtain recoveries by selling

15  proprietary assets that would become valueless if made public.

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

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19                          SENATE SUMMARY

20    Provides exemptions from the public-records requirements
      for specified reports and information in the possession
21    of the Department of Insurance relating to insurers in
      receivership. Provides for future review and repeal.
22    Provides a finding of public necessity.

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