Bill Text: FL S1014 | 2017 | Regular Session | Introduced

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

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Bill Title: Public Records/Investigation and Tracking of Insurance Fraud/Department of Financial Services

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2017-05-04 - Laid on Table, companion bill(s) passed, see CS/HB 1009 (Ch. 2017-179), CS/CS/CS/HB 1007 (Ch. 2017-178) [S1014 Detail]

Download: Florida-2017-S1014-Introduced.html

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       Florida Senate - 2017                                    SB 1014
       
       
        
       By Senator Brandes
       
       
       
       
       
       24-01264A-17                                          20171014__
    1                        A bill to be entitled                      
    2         An act relating to public records; amending s.
    3         626.9891, F.S.; providing an exemption from public
    4         records requirements for certain information held by
    5         the Division of Investigative and Forensic Services of
    6         the Department of Financial Services, or the
    7         department, relating to insurer anti-fraud plans,
    8         descriptions, contracts, related documents, anti-fraud
    9         statistics, and information reported by insurers
   10         writing workers’ compensation insurance; providing for
   11         future legislative review and repeal of the exemption;
   12         providing a statement of public necessity; providing a
   13         contingent effective date.
   14          
   15  Be It Enacted by the Legislature of the State of Florida:
   16  
   17         Section 1. Subsection (11) is added to section 626.9891,
   18  Florida Statutes, as amended by SB ____, 2017 Regular Session,
   19  to read:
   20         626.9891 Insurer anti-fraud investigative units; reporting
   21  requirements; penalties for noncompliance.—
   22         (11)(a) The following information held by the Division of
   23  Investigative and Forensic Services or the department is exempt
   24  from s. 119.07(1) and s. 24(a), Art. I of the State
   25  Constitution:
   26         1. An insurer’s anti-fraud plan adopted pursuant to
   27  subsections (2), (3), and (4) which is filed with the Division
   28  of Investigative and Forensic Services;
   29         2. An insurer’s description of its unit or division that
   30  investigates possible fraudulent insurance acts and copies of
   31  contracts and related documents which are filed with the
   32  Division of Investigative and Forensic Services pursuant to
   33  subsection (2);
   34         3. An insurer’s anti-fraud statistics submitted to the
   35  department pursuant to subsection (5); and
   36         4. Information reported by an insurer to the department
   37  pursuant to subsection (6).
   38         (b) This subsection is subject to the Open Government
   39  Sunset Review Act in accordance with s. 119.15 and is repealed
   40  on October 2, 2022, unless reviewed and saved from repeal
   41  through reenactment by the Legislature.
   42         Section 2. (1) The Legislature finds that it is a public
   43  necessity to make exempt from s. 119.07(1), Florida Statutes,
   44  and s. 24(a), Article I of the State Constitution the anti-fraud
   45  plans adopted by insurers and filed with the Division of
   46  Investigative and Forensic Services of the Department of
   47  Financial Services pursuant to s. 626.9891(2), (3), and (4),
   48  Florida Statutes, an insurer’s description of its unit or
   49  division that investigates possible fraudulent insurance acts
   50  and copies of contracts and related documents which are filed
   51  with the Division of Investigative and Forensic Services
   52  pursuant to s. 626.9891(2), Florida Statutes, the anti-fraud
   53  statistics annually submitted by insurers to the department
   54  pursuant to s. 626.9891(5), Florida Statutes, and the
   55  information annually reported by insurers writing workers’
   56  compensation insurance to the department pursuant to s.
   57  626.9891(6), Florida Statutes.
   58         (2) The anti-fraud plans adopted and filed pursuant to s.
   59  626.9891(2), (3), and (4), Florida Statutes, and an insurer’s
   60  description of its unit or division that investigates possible
   61  fraudulent insurance acts and copies of contracts and related
   62  documents which are filed with the Division of Investigative and
   63  Forensic Services pursuant to s. 626.9891, Florida Statutes,
   64  will allow the department to ensure that insurers have adequate
   65  procedures in place to properly detect, investigate, and report
   66  possible instances of insurance fraud. Such information
   67  includes, but is not limited to, a description of the anti-fraud
   68  education and training that is provided to the designated anti
   69  fraud investigative unit or contractor and that is designed to
   70  assist in identifying and evaluating instances of suspected
   71  fraudulent insurance acts in underwriting or claims activities;
   72  a written description or chart outlining the organizational
   73  arrangement of the insurer’s anti-fraud personnel who are
   74  responsible for the investigation and reporting of possible
   75  fraudulent insurance acts; and the rationale for the level of
   76  staffing and resources being provided for the anti-fraud
   77  investigative unit, such as the number of policies written, the
   78  number of claims received on an annual basis, the volume of
   79  suspected fraudulent claims detected on an annual basis, an
   80  assessment of the optimal caseload that one investigator can
   81  handle on an annual basis, and other factors. The public
   82  disclosure of this information would allow criminal elements to
   83  use such information to identify fraud prevention or detection
   84  strategies employed by insurers and use this information to
   85  commit insurance fraud. The Legislature further finds that
   86  disclosure of this information would allow persons suspected of
   87  fraudulent behavior to be alerted to a potential or ongoing
   88  investigation into suspicious criminal insurance activity and
   89  alter behavior to impede an investigation.
   90         (3) The anti-fraud statistics annually submitted by
   91  insurers to the department pursuant to s. 626.9891(5), Florida
   92  Statutes, and the information annually reported by insurers
   93  writing workers’ compensation insurance to the department
   94  pursuant to s. 626.9891(6), Florida Statutes, enables the
   95  department to track and assess insurance fraud in this state.
   96  Such information includes detailed information about fraud
   97  related cases, including those referred to the Division of
   98  Insurance and Forensic Services. The public disclosure of this
   99  information could injure a business in the marketplace by
  100  providing its competitors with detailed insights into the claim
  101  investigation processes and statistics of these companies,
  102  thereby diminishing the advantage that the business maintains
  103  over competitors that do not possess such information. Without
  104  this exemption, insurers might refrain from providing accurate
  105  and unbiased data, thus impairing the department’s ability to
  106  track and assess insurance fraud in this state. This data will
  107  allow insurance fraud investigators to better track, predict,
  108  and curb fraud trends in this state by providing access to data
  109  gathered by insurers’ anti-fraud investigative units or
  110  contractors. Information regarding the amount of insurance fraud
  111  experienced, referred, and addressed internally will be valuable
  112  material for the department and will better enable law
  113  enforcement agencies to assist state prosecutors in the
  114  successful prosecution of fraudulent behavior.
  115         Section 3. This act shall take effect on the same date that
  116  SB ____ or similar legislation takes effect, if such legislation
  117  is adopted in the same legislative session or an extension
  118  thereof and becomes a law.