Senate Bill sb0430c2

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    Florida Senate - 2002                     CS for CS for SB 430

    By the Committees on Governmental Oversight and Productivity;
    Banking and Insurance; and Senator Klein




    302-1804-02

  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 future review and

  6         repeal; providing a finding of public

  7         necessity; providing a contingent effective

  8         date.

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

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

13  of an insurer subject to delinquency proceedings pursuant to

14  chapter 631 held by the Department of Insurance, acting as

15  receiver pursuant to chapter 631, or held by a guaranty

16  association established pursuant to chapter 631, are exempt

17  from the provisions of section 119.07(1), Florida Statutes,

18  and Section 24(a), Article I of the State Constitution:

19         (a)  Information in customary underwriting files which

20  identifies an insured or a claimant.

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

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

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

24  law.

25         (c)  All medical records.

26         (d)  Personal identifying information contained in

27  nonmanagerial personnel records and nonmanagerial payroll

28  records.

29         (e)  Information in claims files which identifies an

30  insured or a claimant.

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    Florida Senate - 2002                     CS for CS for SB 430
    302-1804-02




  1  This exemption applies to such information and records held by

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

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

  4  of this exemption.

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

  6  Sunset Review Act of 1995 in accordance with section 119.15,

  7  Florida Statutes, and shall stand repealed on October 2, 2007,

  8  unless reviewed and saved from repeal through reenactment by

  9  the Legislature.

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

11  necessity that certain records of an insurer subject to

12  delinquency proceedings which are held by the Department of

13  Insurance as receiver, or by a guaranty association, be made

14  exempt from public disclosure. Identifying information

15  contained in underwriting files, nonmanagerial personnel

16  records, nonmanagerial payroll records, and claims files, and

17  medical records contain sensitive personal information that is

18  not available to the public when held by the insurer. Access

19  to such information and records could cause harm or

20  embarrassment to an individual. Disclosure of such information

21  and records allows access to private information concerning a

22  person which could be used to perpetrate fraud upon that

23  person. Access to such information and records constitutes an

24  unwarranted invasion into the life and personal privacy of a

25  person. Thus, the harm from disclosing such information and

26  records outweighs any public benefit that can be derived from

27  public disclosure. Furthermore, the Legislature finds that

28  this exemption is a public necessity because matters of

29  personal health are traditionally private and confidential

30  concerns between a patient and the patient's health care

31  provider. The private and confidential nature of personal

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    Florida Senate - 2002                     CS for CS for SB 430
    302-1804-02




  1  health matters pervades both the public and private health

  2  care sectors. Other records contain attorney work product and

  3  information privileged or protected under other applicable

  4  law. Disclosure of information not otherwise available

  5  pursuant to the applicable rules of civil procedure or

  6  privileged or protected under other applicable law puts the

  7  receiver and guaranty associations at a disadvantage in legal

  8  proceedings which are intended to maximize the value of the

  9  estate of a delinquent insurer and thereby afford insured

10  persons and creditors of the insurer greater recoveries

11  through delinquency proceedings. The Legislature finds that

12  making otherwise undiscoverable records available to the

13  public would prejudice claimants with legal entitlement to

14  proceeds of the receivership estate by undermining the

15  legitimate receivership function of maximizing the value of

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

17  payroll records of nonmanagerial personnel of the insurer

18  contain sensitive personal information that should be exempt

19  from public disclosure.

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

21  if Committee Substitute for Senate Bill 432 or similar

22  legislation is adopted in the same legislative session or an

23  extension thereof and becomes law.

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    Florida Senate - 2002                     CS for CS for SB 430
    302-1804-02




  1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
  2                            CS/SB 430

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  4  Narrows the exemption created. Information in underwriting
    files that is made exempt is limited to information that
  5  identifies an insured or a claimant. Also, limits exemption in
    nonmanagerial personnel and payroll records to personal
  6  identifying information contained in those records.

  7  Adds a statement of retroactive application.

  8  Revises statement of public necessity to reflect modifications
    made to exemption.
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