Florida Senate - 2020                                    SB 1188
       
       
        
       By Senator Albritton
       
       
       
       
       
       26-00996A-20                                          20201188__
    1                        A bill to be entitled                      
    2         An act relating to public records; creating s.
    3         631.195, F.S.; defining the terms “consumer” and
    4         “personal financial and health information”; exempting
    5         from public records requirements consumer personal
    6         financial and health information, certain underwriting
    7         files, insurer personnel and payroll records, and
    8         consumer claim files that are made or received by the
    9         Department of Financial Services acting as receiver as
   10         to an insurer; exempting from public records
   11         requirements certain reports and documents held by the
   12         department relating to insurer own-risk and solvency
   13         assessments and corporate governance annual
   14         disclosures and certain information received from the
   15         National Association of Insurance Commissioners or
   16         governments; providing retroactive applicability;
   17         providing that exempted records may be released under
   18         specified circumstances; providing for future
   19         legislative review and repeal of the exemptions;
   20         providing statements of public necessity; providing an
   21         effective date.
   22          
   23  Be It Enacted by the Legislature of the State of Florida:
   24  
   25         Section 1. Section 631.195, Florida Statutes, is created to
   26  read:
   27         631.195 Records of insurers; public records exemptions.—
   28         (1)As used in this section, the term:
   29         (a)“Consumer” means a prospective purchaser of, a
   30  purchaser of, a beneficiary of, or an applicant for any
   31  insurance product or service. The term also includes a family
   32  member or dependent of such person.
   33         (b)“Personal financial and health information” means:
   34         1.A consumer’s personal health condition, disease, or
   35  injury;
   36         2.A history of a consumer’s personal medical diagnosis or
   37  treatment;
   38         3.The existence, nature, source, or amount of a consumer’s
   39  personal income or expenses;
   40         4.Records of, or relating to, a consumer’s personal
   41  financial transactions of any kind;
   42         5.The existence, identification, nature, or value of a
   43  consumer’s assets, liabilities, or net worth;
   44         6.The existence or content of, or any individual coverage
   45  or status under a consumer’s beneficial interest in, any
   46  insurance policy or annuity contract; or
   47         7.The existence, identification, nature, or value of a
   48  consumer’s interest in any insurance policy, annuity contract,
   49  or trust.
   50         (2)The following records, in whatever form, of an insurer
   51  which are made or received by the department, acting as receiver
   52  pursuant to this chapter, are exempt from s. 119.07(1) and s.
   53  24(a), Art. I of the State Constitution:
   54         (a)All personal financial and health information of a
   55  consumer.
   56         (b)Underwriting files of a type customarily maintained by
   57  an insurer transacting lines of insurance similar to those lines
   58  transacted by the insurer.
   59         (c)Personnel and payroll records of the insurer.
   60         (d)Consumer claim files.
   61         (3)The following records held by the department are
   62  confidential and exempt from s. 119.07(1) and s. 24(a), Art. I
   63  of the State Constitution:
   64         (a)An ORSA summary report, a substantially similar ORSA
   65  summary report, and supporting documents submitted to the office
   66  pursuant to s. 628.8015.
   67         (b)A corporate governance annual disclosure and supporting
   68  documents submitted to the office pursuant to s. 628.8015.
   69         (c)Information received from the National Association of
   70  Insurance Commissioners, a governmental entity in this or
   71  another state, the Federal Government, or a government of
   72  another nation which is confidential or exempt if held by that
   73  entity and which is held by the department for use in the
   74  performance of its duties relating to insurer solvency.
   75         (4)The exemptions in subsections (2) and (3) apply to
   76  records held by the department before, on, and after July 1,
   77  2020.
   78         (5)Records or portions of records made confidential and
   79  exempt by this section may be released under any of the
   80  following circumstances:
   81         (a)To any state or federal agency, upon written request,
   82  if disclosure is necessary for the receiving entity to perform
   83  its duties and responsibilities. The receiving agency shall
   84  maintain the confidential and exempt status of such record or
   85  portion of such record.
   86         (b)To comply with a properly authorized civil, criminal,
   87  or regulatory investigation or a subpoena or summons by a
   88  federal, state, or local authority.
   89         (c)To the National Association of Insurance Commissioners
   90  and its affiliates and subsidiaries, if the recipient agrees in
   91  writing to maintain the confidential and exempt status of the
   92  records.
   93         (d)To the guaranty associations and funds of the various
   94  states which are receiving, adjudicating, and paying claims of
   95  the insolvent insurer subject to delinquency proceedings
   96  pursuant to this chapter. The receiving guaranty association
   97  shall maintain the confidential and exempt status of such record
   98  or portion of such record.
   99         (e)Upon written request, to persons identified as
  100  designated employees as described in s. 626.989(4)(d), whose
  101  responsibilities include the investigation and disposition of
  102  claims relating to suspected fraudulent insurance acts.
  103         (f)In the case of personal financial and health
  104  information of a consumer, upon written request of the consumer
  105  or the consumer’s legally authorized representative.
  106         (6)This section is subject to the Open Government Sunset
  107  Review Act in accordance with s. 119.15 and shall stand repealed
  108  on October 2, 2025, unless reviewed and saved from repeal
  109  through reenactment by the Legislature.
  110         Section 2. (1)The Legislature finds it is a public
  111  necessity to exempt from s. 119.07(1), Florida Statutes, and s.
  112  24(a), Article I of the State Constitution all personal
  113  financial and health information of a consumer, underwriting
  114  files of a type customarily maintained by an insurer transacting
  115  lines of insurance similar to those lines transacted by the
  116  insurer, personnel and payroll records of an insurer, and
  117  consumer claim files that are made or received by the Department
  118  of Financial Services acting as receiver as to an insurer.
  119  Disclosure of financial, health, underwriting, personnel,
  120  payroll, or consumer claim information would create the
  121  opportunity for theft or fraud, thereby jeopardizing the
  122  financial security of a person. Limiting disclosure of such
  123  information held by the department is also necessary in order to
  124  protect the financial interests of the persons to whom that
  125  information pertains. Such information could be used for
  126  fraudulent or other illegal purposes, including identity theft,
  127  and could result in substantial financial harm. Furthermore,
  128  every person has an expectation of and a right to privacy in all
  129  matters concerning his or her financial interests. The
  130  Legislature further finds that it is a public necessity that
  131  health information held by the department be made confidential
  132  and exempt because matters of personal health are traditionally
  133  private and confidential concerns between the patient and his or
  134  her health care provider. The private and confidential nature of
  135  personal health matters pervades both the public and private
  136  health care sectors. Moreover, public disclosure of health
  137  information could have a negative effect upon a person’s
  138  business and personal relationships and could also have
  139  detrimental financial consequences.
  140         (2)(a)The Legislature further finds that it is a public
  141  necessity to exempt from s. 119.07(1), Florida Statutes, and s.
  142  24(a), Article I of the State Constitution the following records
  143  held by the department:
  144         1.An own-risk and solvency assessment (ORSA) summary
  145  report, a substantially similar ORSA summary report, and
  146  supporting documents submitted to the Office of Insurance
  147  Regulation pursuant to s. 628.8015, Florida Statutes;
  148         2.A corporate governance annual disclosure and supporting
  149  documents submitted to the office pursuant to s. 628.8015,
  150  Florida Statutes; and
  151         3.Information received from the National Association of
  152  Insurance Commissioners, a governmental entity in this or
  153  another state, the Federal Government, or a government of
  154  another nation which is confidential or exempt if held by that
  155  entity and which is held by the department for use in the
  156  performance of its duties relating to insurer solvency.
  157         (b)In conducting an ORSA, an insurer or insurance group
  158  identifies and evaluates the material and relevant risks to the
  159  insurer or insurance group and the adequacy of capital resources
  160  to support these risks. The ORSA summary report, substantially
  161  similar ORSA report, and supporting documents contain highly
  162  sensitive and strategic financial information about an insurer
  163  or insurer group. Having a comprehensive and unbiased assessment
  164  provides the office with an effective early warning mechanism
  165  for preventing insolvencies and protecting policyholders and
  166  promotes a stable insurance market. Divulging the ORSA summary
  167  report, substantially similar ORSA summary report, and
  168  supporting documents will injure the insurer or insurance group
  169  by providing competitors with detailed insight into their
  170  financial position, risk management strategies, business plans,
  171  pricing and marketing strategies, management systems, and
  172  operational protocols.
  173         (c)The corporate governance annual disclosure describes an
  174  insurer’s governance structure and the internal practices and
  175  procedures used in conducting the business affairs of the
  176  company, making strategic operational decisions affecting its
  177  competitive position, and managing its financial condition.
  178  Release of the corporate governance annual disclosure and
  179  supporting documents will injure the insurer or insurance group
  180  in the marketplace by providing competitors with the insurer’s
  181  or the insurance group’s confidential business information.
  182  Broad disclosure will give state regulators a thorough
  183  understanding of the corporate governance structure and internal
  184  policies and practices used by insurers and promote market
  185  integrity. Effective governance mechanisms will enable insurers
  186  to take any necessary corrective actions and achieve strategic
  187  goals while allowing the office to perform its regulatory duties
  188  effectively and efficiently.
  189         (d)Divulgence of confidential or exempt information
  190  received from the National Association of Insurance
  191  Commissioners or governments could impede the exchange of
  192  information and communication among regulators across multiple
  193  agencies and jurisdictions and jeopardize the ability of
  194  regulators to effectively supervise insurers and groups
  195  operating in multiple jurisdictions and engaged in significant
  196  cross-border activities.
  197         Section 3. This act shall take effect July 1, 2020.