Senate Bill sb1458e1

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    CS for SB 1458                           First Engrossed (ntc)



  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.--

17         (1)  The following records, in whatever form, of an

18  insurer subject to delinquency proceedings pursuant to this

19  chapter, made or received by the Department of Insurance,

20  acting as receiver pursuant to this chapter, or by a guaranty

21  association established pursuant to this chapter, are exempt

22  from the provisions of s. 119.07(1) and s. 24(a), Art. I of

23  the State Constitution:

24         (a)  Underwriting files of a type customarily

25  maintained by an insurer transacting lines of insurance

26  similar to those lines transacted by the insurer subject to

27  delinquency proceedings.

28         (b)  Records of the receiver, or a guaranty

29  association, of, or with respect to, the insurer that would be

30  privileged against discovery in the hands of the insurer under

31  Rule 1.280(b), Florida Rules of Civil Procedure, or other


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    CS for SB 1458                           First Engrossed (ntc)



  1  applicable rule or law, but for the appointment of the

  2  receiver.

  3         (c)  All medical records.

  4         (d)  Nonmanagerial personnel and payroll records of the

  5  insurer.

  6         (e)  Claims information that identifies an insured or a

  7  claimant.

  8         (2)  This section is subject to the Open Government

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

10  shall stand repealed on October 2, 2006, unless reviewed and

11  saved from repeal through reenactment by the Legislature.

12         Section 2.  The Legislature finds that it is a public

13  necessity to protect certain records of an insurer subject to

14  delinquency proceedings from public disclosure, which

15  justifies exempting such records from the constitutional and

16  statutory provisions of this state favoring public disclosure.

17  These records include customary underwriting files, claims

18  files, and medical files of the insurer which contain

19  sensitive personal information regarding insured persons and

20  claimants. The records contain attorney work product and

21  information privileged under other applicable law. Disclosure

22  of information not otherwise available pursuant to the

23  applicable rules of civil procedure or privileged under other

24  applicable law puts the receiver and guaranty associations at

25  a disadvantage in legal proceedings that are intended to

26  maximize the value of the estate of a delinquent insurer and

27  thereby afford insured persons and creditors of the insurer

28  greater recoveries through delinquency proceedings. The

29  Legislature finds that making otherwise undiscoverable records

30  available to the public would prejudice claimants with legal

31  entitlement to proceeds of the receivership estate by


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    CS for SB 1458                           First Engrossed (ntc)



  1  undermining the legitimate receivership function of maximizing

  2  the value of the estate for the benefit of such claimants.

  3  Personnel and payroll records of nonmanagerial personnel of

  4  the insurer contain sensitive personal information that should

  5  be exempt from public disclosure.

  6         Section 3.  This act shall take effect upon becoming a

  7  law.

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