Bill Text: FL S1416 | 2016 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Public Records/Own-risk and Solvency Assessment/Corporate Governance Annual Disclosure

Spectrum: Slight Partisan Bill (? 2-1)

Status: (Passed) 2016-04-08 - Chapter No. 2016-205, companion bill(s) passed, see CS/CS/SB 1422 (Ch. 2016-206) [S1416 Detail]

Download: Florida-2016-S1416-Introduced.html

---

       Florida Senate - 2016                                    SB 1416
       
       
        
       By Senator Simmons
       
       10-00982B-16                                          20161416__
    1                        A bill to be entitled                      
    2         An act relating to public records; amending s.
    3         624.4212, F.S.; providing an exemption from public
    4         records requirements for certain reports and documents
    5         submitted to the Office of Insurance Regulation
    6         related to an own-risk and solvency assessment by an
    7         insurer or insurance group; providing an exemption
    8         from public records requirements for a corporate
    9         governance annual disclosure and supporting documents
   10         submitted to the office; revising the actuarial board
   11         to which the office may disclose certain information;
   12         providing for and revising future legislative review
   13         and repeal; providing a statement of public necessity;
   14         providing a contingent effective date.
   15          
   16  Be It Enacted by the Legislature of the State of Florida:
   17  
   18         Section 1. Present subsections (3), (4), and (5) of section
   19  624.4212, Florida Statutes, are redesignated as subsections (4),
   20  (5), and (6), respectively, and amended, and a new subsection
   21  (3) is added to that section, to read:
   22         624.4212 Confidentiality of proprietary business and other
   23  information.—
   24         (3) The following information held by the office is
   25  confidential and exempt from s. 119.07(1) and s. 24(a), Art. I
   26  of the State Constitution:
   27         (a) An ORSA summary report, a substantially similar ORSA
   28  report, and supporting documents submitted pursuant to s.
   29  628.8015.
   30         (b) A corporate governance annual disclosure and supporting
   31  documents submitted pursuant to s. 628.8015.
   32         (4)(3) Information received from the NAIC, a or another
   33  governmental entity in this or another state, the Federal
   34  Government, or a government of another nation which is
   35  confidential or exempt if held by that entity and which is held
   36  by the office for use in the office’s performance of its duties
   37  relating to insurer valuation and solvency is confidential and
   38  exempt from s. 119.07(1) and s. 24(a), Art. I of the State
   39  Constitution.
   40         (5)(4) The office may disclose information made
   41  confidential and exempt under this section:
   42         (a) If the insurer to which it pertains gives prior written
   43  consent;
   44         (b) Pursuant to a court order;
   45         (c) To the Actuarial Board for Counseling and Discipline
   46  American Academy of Actuaries upon a request stating that the
   47  information is for the purpose of professional disciplinary
   48  proceedings and specifying procedures satisfactory to the office
   49  for preserving the confidentiality of the information;
   50         (d) To other states, federal and international agencies,
   51  the National Association of Insurance Commissioners and its
   52  affiliates and subsidiaries, and state, federal, and
   53  international law enforcement authorities, including members of
   54  a supervisory college described in s. 628.805 if the recipient
   55  agrees in writing to maintain the confidential and exempt status
   56  of the document, material, or other information and has
   57  certified in writing its legal authority to maintain such
   58  confidentiality; or
   59         (e) For the purpose of aggregating information on an
   60  industrywide basis and disclosing the information to the public
   61  only if the specific identities of the insurers, or persons or
   62  affiliated persons, are not revealed.
   63         (6)(5) This section is subject to the Open Government
   64  Sunset Review Act in accordance with s. 119.15 and is repealed
   65  on October 2, 2021 2019, unless reviewed and saved from repeal
   66  through reenactment by the Legislature.
   67         Section 2. (1) The Legislature finds that it is a public
   68  necessity that the own-risk and solvency assessment (ORSA)
   69  summary report, a substantially similar ORSA report, and
   70  supporting documents submitted to and held by the Office of
   71  Insurance Regulation pursuant to s. 628.8015, Florida Statutes,
   72  be exempt from public records requirements. In conducting this
   73  required internal assessment, an insurer or insurance group
   74  identifies and evaluates the material and relevant risks to the
   75  insurer or insurance group and the adequacy of capital resources
   76  to support these risks. The ORSA summary report, substantially
   77  similar ORSA report, and supporting documents contain highly
   78  sensitive and strategic financial information about an insurer
   79  or insurer group. Having a comprehensive and unbiased assessment
   80  will provide the office with an effective early warning
   81  mechanism for preventing insolvencies and protecting
   82  policyholders and promote a stable insurance market. Divulging
   83  the ORSA summary report, substantially similar ORSA summary
   84  report, and supporting documents will injure the insurer or
   85  insurance group by providing competitors with detailed insight
   86  into their financial position, risk management strategies,
   87  business plans, pricing and marketing strategies, management
   88  systems, and operational protocols.
   89         (2) The Legislature finds that it is a public necessity
   90  that the corporate governance annual disclosure and supporting
   91  documents submitted to and held by the office be exempt from
   92  public records requirements. The corporate governance annual
   93  disclosure describes an insurer’s governance structure and the
   94  internal practices and procedures used in conducting the
   95  business affairs of the company, making strategic operational
   96  decisions affecting its competitive position, and managing its
   97  financial condition. Broad disclosure will give state regulators
   98  a thorough understanding of the corporate governance structure
   99  and internal policies and practices used by insurers and promote
  100  market integrity. Effective governance mechanisms will enable
  101  insurers to take any necessary corrective actions and achieve
  102  strategic goals.
  103         Section 3. This act shall take effect on the same date that
  104  SB ____ or similar legislation takes effect, if such legislation
  105  is adopted in the same legislative session or an extension
  106  thereof and becomes a law.