Senate Banking and Insurance, House Homeland Security Committee Reports

On Wednesday, February 6, 2008, the Senate Banking and Insurance Committee (“Committee”) met to review two Interim Projects and consider Senate Bill 7042, an insurance-related proposed committee bill regarding a public records exemption for credit scoring methodologies.

Florida Office of Insurance Regulation (“OIR”) General Counsel Steve Parton testified in favor of eliminating the existing statutory public records exemption slated to expire on October 2, 2008.  Referencing four studies indicating that the use of credit scoring is unfairly discriminatory against minorities, Mr. Parton noted that insurers unnecessarily assert the trade secret exemption and suggested enactment of OIR authorization to enter sanctions when that occurs. 

A State Farm representative testified regarding industry advantages to the public records exemption.  The representative said he welcomed the opportunity to debate the policy rationale for the use of credit scores with the OIR, but not in the context of deliberation regarding the public records exemption.  Because the meeting concluded before a vote could be taken, the issue is expected to be heard at the next meeting.

To view the Senate Interim Committee Report on Open Government Sunset Review of Section 626.97411, F.S., Credit Scoring Methodologies [2008-204], click here.

The next Committee meeting is scheduled for February 19 at 1:45 p.m.

House Homeland Security and Public Safety Committee

Also on February 6, the House Homeland Security and Public Safety Committee heard House Bill 267 relating to False and Fraudulent Insurance Claims sponsored by Representative Alan Hayes.  This bill would increase the penalties for persons who commit insurance fraud in connection with Personal Injury Protection claims.  After brief discussion on the bill, it passed the Committee unanimously with one technical amendment.  During the limited debate, Representative William Synder expressed concerns about applicable minimum mandatory sentences.
 
Should you have any questions or comments, please feel free to contact this office.