House Bill hb0195c2

    Florida House of Representatives - 2002           CS/CS/HB 195

        By the Council for Competitive Commerce and Committee on
    Insurance and Representatives Gannon and Kallinger





  1                      A bill to be entitled

  2         An act relating to public records; providing an

  3         exemption from public records requirements for

  4         records of insurers subject to delinquency

  5         proceedings; providing for retroactive

  6         application; providing for future review and

  7         repeal; providing a finding of public

  8         necessity; providing a contingent effective

  9         date.

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

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13         Section 1.  (1)  The following information and records

14  of an insurer subject to delinquency proceedings pursuant to

15  chapter 631, Florida Statutes, held by the Department of

16  Insurance acting as receiver pursuant to chapter 631, Florida

17  Statutes, or by a guaranty association established pursuant to

18  chapter 631, Florida Statutes, are exempt from the provisions

19  of s. 119.07(1), Florida Statutes, and s. 24(a), Art. I of the

20  State Constitution:

21         (a)  Information in customary underwriting files that

22  identifies an insured or claimant.

23         (b)  Records that if held by the insurer would be

24  privileged or protected against discovery under Rule 1.280(b),

25  Florida Rules of Civil Procedure, or other applicable rule or

26  law.

27         (c)  All medical records.

28         (d)  Personal identifying information contained in

29  nonmanagerial personnel records and nonmanagerial payroll

30  records.

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    Florida House of Representatives - 2002           CS/CS/HB 195

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  1         (e)  Information in claims files that identifies an

  2  insured or a claimant.

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  4  This exemption applies to such information and records held by

  5  the Department of Insurance acting as receiver, or by a

  6  guaranty association, before, on, or after the effective date

  7  of this exemption.

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

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

10  Florida Statutes, and shall stand repealed on October 2, 2007,

11  unless reviewed and saved from repeal through reenactment by

12  the Legislature.

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

14  necessity that certain records of an insurer subject to

15  delinquency proceedings held by the Department of Insurance as

16  receiver, or by a guaranty association, be made exempt from

17  public disclosure. Medical records and identifying information

18  contained in underwriting files, nonmanagerial personnel

19  records, nonmanagerial payroll records, and claims files

20  contain sensitive personal information that is not available

21  to the public when held by the insurer.  Access to such

22  records and information could cause harm or embarrassment to

23  an individual.  Disclosure of such records and information

24  allows access to private information about a person, which

25  could be used to perpetrate fraud upon that person.  Access to

26  such records and information constitutes an unwarranted

27  invasion into the life and personal privacy of a person.

28  Thus, the harm from disclosing such records and information

29  outweighs any public benefit that can be derived from public

30  access.  Furthermore, the Legislature finds that this

31  exemption is a public necessity because matters of personal

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  1  health are traditionally private and confidential concerns

  2  between a patient and the patient's health care provider.  The

  3  private and confidential nature of personal health matters

  4  pervades both the public and private health care sectors.

  5  Other records contain attorney work product and information

  6  that would be privileged or protected under other applicable

  7  law.  Disclosure of information not otherwise available

  8  pursuant to the applicable rules of civil procedure or

  9  privileged or protected under other applicable law puts the

10  receiver and guaranty associations at a disadvantage in legal

11  proceedings which are intended to maximize the value of the

12  estate of a delinquent insurer and thereby afford insured

13  persons and creditors of the insurer greater recoveries

14  through delinquency proceedings. The Legislature finds that

15  making otherwise undiscoverable records available to the

16  public would prejudice claimants with legal entitlement to

17  proceeds of the receivership estate by undermining the

18  legitimate receivership function of maximizing the value of

19  the estate for the benefit of such claimants. Personnel and

20  payroll records of nonmanagerial personnel of the insurer

21  contain sensitive personal information that should be exempt

22  from public disclosure.

23         Section 3.  This act shall take effect October 1, 2002,

24  if HB 193 or similar legislation is adopted in the same

25  legislative session or an extension thereof and becomes law.

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