Florida Senate - 2020 COMMITTEE AMENDMENT Bill No. SB 1188 Ì4922566Î492256 LEGISLATIVE ACTION Senate . House . . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Governmental Oversight and Accountability (Albritton) recommended the following: 1 Senate Amendment (with title amendment) 2 3 Delete everything after the enacting clause 4 and insert: 5 6 Section 1. Section 631.195, Florida Statutes, is created to 7 read: 8 631.195 Records of insurers; public records exemptions.— 9 (1) As used in this section, the term: 10 (a) “Consumer” means a prospective purchaser of, a 11 purchaser of, a beneficiary of, or an applicant for any 12 insurance product or service. The term also includes a family 13 member or dependent of such person. 14 (b) “Personal financial and health information” means: 15 1. A consumer’s personal health condition, disease, or 16 injury; 17 2. A history of a consumer’s personal medical diagnosis or 18 treatment; 19 3. The existence, nature, source, or amount of a consumer’s 20 personal income or expenses; 21 4. Records of, or relating to, a consumer’s personal 22 financial transactions of any kind; 23 5. The existence, identification, nature, or value of a 24 consumer’s assets, liabilities, or net worth; 25 6. The existence or content of, or any individual coverage 26 or status under a consumer’s beneficial interest in, any 27 insurance policy or annuity contract; or 28 7. The existence, identification, nature, or value of a 29 consumer’s interest in any insurance policy, annuity contract, 30 or trust. 31 (2) The following records, in whatever form, of an insurer 32 which are made or received by the department, acting as receiver 33 pursuant to this chapter, are confidential and exempt from s. 34 119.07(1) and s. 24(a), Art. I of the State Constitution: 35 (a) All personal financial and health information of a 36 consumer. 37 (b) Underwriting files of a type customarily maintained by 38 an insurer transacting lines of insurance similar to those lines 39 transacted by the insurer. 40 (c) Personnel and payroll records of the insurer. 41 (d) Consumer claim files. 42 (e) An ORSA summary report, a substantially similar ORSA 43 summary report, and supporting documents submitted to the office 44 pursuant to s. 628.8015. 45 (f) A corporate governance annual disclosure and supporting 46 documents submitted to the office pursuant to s. 628.8015. 47 (g) Information received from the National Association of 48 Insurance Commissioners, a governmental entity in this or 49 another state, the Federal Government, or a government of 50 another nation which is confidential or exempt if held by that 51 entity and which is held by the department for use in the 52 performance of its duties relating to insurer solvency. 53 (3) The exemptions in subsection (2) applies to records 54 held by the department before, on, and after July 1, 2020. 55 (4) Records or portions of records made confidential and 56 exempt by this section may be released under any of the 57 following circumstances: 58 (a) To any state or federal agency, upon written request, 59 if disclosure is necessary for the receiving entity to perform 60 its duties and responsibilities. The receiving agency shall 61 maintain the confidential and exempt status of such record or 62 portion of such record. 63 (b) To comply with a properly authorized civil, criminal, 64 or regulatory investigation or a subpoena or summons by a 65 federal, state, or local authority. 66 (c) To the National Association of Insurance Commissioners 67 and its affiliates and subsidiaries, if the recipient agrees in 68 writing to maintain the confidential and exempt status of the 69 records. 70 (d) To the guaranty associations and funds of the various 71 states which are receiving, adjudicating, and paying claims of 72 the insolvent insurer subject to delinquency proceedings 73 pursuant to this chapter. The receiving guaranty association 74 shall maintain the confidential and exempt status of such record 75 or portion of such record. 76 (e) Upon written request, to persons identified as 77 designated employees as described in s. 626.989(4)(d), whose 78 responsibilities include the investigation and disposition of 79 claims relating to suspected fraudulent insurance acts. 80 (f) In the case of personal financial and health 81 information of a consumer, upon written request of the consumer 82 or the consumer’s legally authorized representative. 83 (5) This section is subject to the Open Government Sunset 84 Review Act in accordance with s. 119.15 and shall stand repealed 85 on October 2, 2025, unless reviewed and saved from repeal 86 through reenactment by the Legislature. 87 Section 2. (1) The Legislature finds it is a public 88 necessity to make confidential and exempt from s. 119.07(1), 89 Florida Statutes, and s. 24(a), Article I of the State 90 Constitution: 91 1. All personal financial and health information of a 92 consumer; 93 2. Underwriting files of a type customarily maintained by 94 an insurer transacting lines of insurance similar to those lines 95 transacted by the insurer; 96 3. Personnel and payroll records of an insurer; 97 4. Consumer claim files; 98 5. An own-risk and solvency assessment (ORSA) summary 99 report, a substantially similar ORSA summary report, and 100 supporting documents submitted to the Office of Insurance 101 Regulation pursuant to s. 628.8015, Florida Statutes; 102 6. A corporate governance annual disclosure and supporting 103 documents submitted to the office pursuant to s. 628.8015, 104 Florida Statutes; and 105 7. Information received from the National Association of 106 Insurance Commissioners, a governmental entity in this or 107 another state, the Federal Government, or a government of 108 another nation which is confidential or exempt if held by that 109 entity and which is held by the department for use in the 110 performance of its duties relating to insurer solvency. 111 (2)(a)Disclosure of financial, health, underwriting, 112 personnel, payroll, or consumer claim information would create 113 the opportunity for theft or fraud, thereby jeopardizing the 114 financial security of a person. Limiting disclosure of such 115 information held by the department is also necessary in order to 116 protect the financial interests of the persons to whom that 117 information pertains. Such information could be used for 118 fraudulent or other illegal purposes, including identity theft, 119 and could result in substantial financial harm. Furthermore, 120 every person has an expectation of and a right to privacy in all 121 matters concerning his or her financial interests. Additionally, 122 matters of personal health are traditionally private and 123 confidential concerns between the patient and his or her health 124 care provider. The private and confidential nature of personal 125 health matters pervades both the public and private health care 126 sectors. Public disclosure of health information could have a 127 negative effect upon a person’s business and personal 128 relationships and could also have detrimental financial 129 consequences. 130 (b) In conducting an ORSA, an insurer or insurance group 131 identifies and evaluates the material and relevant risks to the 132 insurer or insurance group and the adequacy of capital resources 133 to support these risks. The ORSA summary report, substantially 134 similar ORSA report, and supporting documents contain highly 135 sensitive and strategic financial information about an insurer 136 or insurer group. Having a comprehensive and unbiased assessment 137 provides the office with an effective early warning mechanism 138 for preventing insolvencies and protecting policyholders and 139 promotes a stable insurance market. Divulging the ORSA summary 140 report, substantially similar ORSA summary report, and 141 supporting documents will injure the insurer or insurance group 142 by providing competitors with detailed insight into their 143 financial position, risk management strategies, business plans, 144 pricing and marketing strategies, management systems, and 145 operational protocols. 146 (c) The corporate governance annual disclosure describes an 147 insurer’s governance structure and the internal practices and 148 procedures used in conducting the business affairs of the 149 company, making strategic operational decisions affecting its 150 competitive position, and managing its financial condition. 151 Release of the corporate governance annual disclosure and 152 supporting documents will injure the insurer or insurance group 153 in the marketplace by providing competitors with the insurer’s 154 or the insurance group’s confidential business information. 155 Broad disclosure will give state regulators a thorough 156 understanding of the corporate governance structure and internal 157 policies and practices used by insurers and promote market 158 integrity. Effective governance mechanisms will enable insurers 159 to take any necessary corrective actions and achieve strategic 160 goals while allowing the office to perform its regulatory duties 161 effectively and efficiently. 162 (d) Divulgence of confidential or exempt information 163 received from the National Association of Insurance 164 Commissioners or governments could impede the exchange of 165 information and communication among regulators across multiple 166 agencies and jurisdictions and jeopardize the ability of 167 regulators to effectively supervise insurers and groups 168 operating in multiple jurisdictions and engaged in significant 169 cross-border activities. 170 (3) The legislature finds that the harm that may result 171 from the release of such location information outweighs any 172 public benefit that may be derived from the disclosure of the 173 information. 174 Section 3. This act shall take effect July 1, 2020. 175 176 ================= T I T L E A M E N D M E N T ================ 177 And the title is amended as follows: 178 Delete everything before the enacting clause 179 and insert: 180 A bill to be entitled 181 An act relating to public records; creating s. 182 631.195, F.S.; defining the terms “consumer” and 183 “personal financial and health information”; exempting 184 from public records requirements when made or received 185 by the Department of Financial Services acting as 186 receiver as to an insurer: consumer personal financial 187 and health information, certain underwriting files, 188 insurer personnel and payroll records, consumer claim 189 files, certain reports and documents held by the 190 department relating to insurer own-risk, solvency 191 assessments, corporate governance annual disclosures, 192 and certain information received from the National 193 Association of Insurance Commissioners or governments; 194 providing retroactive applicability; providing that 195 exempted records may be released under specified 196 circumstances; providing for future legislative review 197 and repeal of the exemptions; providing statements of 198 public necessity; providing an effective date.