HIGHLIGHTS
HIGHLIGHTS
INCREASING TRANSPARENCY
he third
In 2014,
highest
Thescore
U.S. in
Public
the nation
Interest
and
Research Group (PIRG) gave Florida an A- for transparency, the third highest score in the nation and
e nation
a tremendous
from 2011 to
increase
2014. from a D rating in 2011, making it the second biggest improvement in the nation from 2011 to 2014.
Florida’s increased transparency can be attributed to:
Launching the Transparency Florida website
Developing the Florida Accountability Contract Tracking System (FACTS)
ate contract accountability
» Latest audit of state-contracts revealed a 14 percentage point improvement in state contract accountability
c viewing Creating Solaris, an online tracking system for state-owned lands and facilities for public viewing
FIGHTING FRAUD
arrests
More
per than
day. 5,000 insurance fraud arrests have been made since January 2011, an average of 3.8 arrests per day.
During the 2013-14 Fiscal Year, 87 percent of insurance fraud arrests led to a conviction.
ry 2011, an average
Nearly 2,000
of 1.5 Personal
arrests Injury Protection (PIP) fraud arrests have been made since January 2011, an average of 1.5 arrests
per day.
160 fraudulent PIP clinics have been closed since January 2011.
nit forWithin
the first
the
time
Office
to include
of FiscalFalse
Integrity, CFO Atwater expanded the duties of the Criminal Law Unit for the first time to include False
y billed
Claims
a state
Actagency.
prosecutions. These are cases in which, generally, a state contractor has fraudulently billed a state agency.
s a result
Sinceof2011,
the Division
$129 million
of Public
worth of fraudulent public assistance has been prevented or stopped as a result of the Division of Public
Assistance Fraud’s investigations.
SMART INVESTING
educing
Since
the2011,
burden
Florida’s
on Florida’s
treasury
state
investments have generated $1.2 billion for the state, effectively reducing the burden on Florida’s state
budget and on taxpayers.
states to maintain
Floridaitsis‘AAA’
one ofcredit
only 15
rating
states with a top ‘AAA’ rating from S&P and is only one of eight states to maintain its ‘AAA’ credit rating
from S&P since 2005.
k management
In 2011,
processes
the CFO
and called
financial
for an external review of the State Board of Administration's risk management processes and financial
which havecontrols.
been addressed.
A study conducted by Crowe Horwath resulted in 63 recommendations – all of which have been addressed.
to replace the
CFO
current
Atwater
Internal
created a new externally managed mandate with approximately $2 billion to replace the current Internal
h is expected
Intermediate
to generate portfolio.
average Four external managers were selected to run this mandate, which is expected to generate average
excess net earnings of $6 million annually.
HELPING CONSUMERS
Since 2011:
to insuranceDFS
consumers.
has advocated on behalf of nearly 70,000 Floridians and helped return $87 million to insurance consumers.
ty to its rightful
The owners.
DFS Bureau of Unclaimed Property has returned $824 million in unclaimed property to its rightful owners.
what steps they
A Homeowner
need to takeClaims
in the Bill of Rights was created to provide policyholders advice about what steps they need to take in the
claim-handling process.
PLANNIN G FOR THE FUTURE
Plans are already underway at DFS to:
Expand financial literacy programs throughout Florida
’s accounting
Replace
and financial
the Florida Accounting Information Resource (FLAIR) which performs Florida’s accounting and financial
management functions
Make the insurance industry more transparent and consumer friendly
Establish federal and local partnerships to fight fraud.
Fostering Financial Prosperity
Florida’s Bottom Line
1
PROMOTING GOVERNMENT EFFICIENCY, ACCOUNTABILITY & TRANSPARENCY
DFS BUDGET
Reduced agency spending without reducing strategic investments:
DFS has reduced its total expenditures by
$256
million
$15 million (-6%),
FY08-09
$241
million
FY13-14
TRANSPARENCY FLORIDA
Upon arriving in office, Florida’s U.S. Public Interest Research Group (PIRG) Transparency
Grade was a ‘D’ (2010). As a result of CFO Atwater‘s Transparency initiatives, Florida’s PIRG
Transparency Grade has
risen to an “A-.”
Florida's transparency grade has risen from 36th in 2011 to 3rd in the nation by 2014.
FLORIDA ACCOUNTABILITY CONTRACT
TRACKING SYSTEM (FACTS)
CFO Atwater led the development of FACTS to track state contracts by government agencies and gives the public access to
contract information.
More than 284,000 active state contracts available online
DFS has trained more than
Latest audit of state
contracts revealed a
3,500 contract
managers while also
14 percentage
point improvement
providing assistance in the
drafting of state contracts
More than two-thirds
in state contract
accountability
of state agencies have improved their deficiency rating by writing better contracts.
Twice as many contracts were reviewed
in FY13-14 (885) than in FY10-11 (445).
Nearly 3,000 contract reviews
conducted over the past four fiscal years.
885
FY 13-14
FY 10-11
14%
445
Fostering Financial Prosperity
Florida’s Bottom Line 2
PROMOTING
PROMOTINGGOVERNMENT
GOVERNMENTEFFICIENCY,
EFFICIENCY,ACCOUNTABILITY
ACCOUNTABILITY&&TRANSPARENCY
TRANSPARENCY
TREASURY
TRE ASURY INVESTMENT
INVESTMENT RETURNS
RETURNS
CFO
CFO
Atwater
Atwater
created
created
a new
a new
externally
externally
managed
managed
mandate
mandate
(Intermediate
(Intermediate
Duration)
Duration)
with
with
approximately
approximately
two
two
billion
billion
dollars
dollars
to to
replace
replace
thethe
current
current
Internal
Internal
Intermediate
Intermediate
portfolio.
portfolio.
This
This
initiative
initiative
will
will
allow
allow
forfor
anan
expansion
expansion
of of
investment
investment
opportunities
opportunities
in in
thethe
intermediate
intermediate
part
part
of of
thethe
yield
yield
curve
curve
asas
well
well
asas
a reduction
a reduction
in in
concentration
concentration
risk.
risk.
Four
Four
external
external
managers
managers
were
were
selected
selected
to to
run
run
this
this
mandate.
mandate.
This
This
initiative
initiative
is is
expected
expected
to to
generate
generate
average
average
excess
excess
netnet
earnings
earnings
of of
$6
$6million
millionannually.
annually.
investments
investmentshave
havegenerated
generated$1.2
$1.2billion
billioninininvestment
investment
earnings
earnings
forfor
thethe
state,
state,
effectively
effectively
Since
Since
2011,
2011,
reducing
reducing
thethe
burden
burden
onon
our
our
state
state
budget
budget
and
and
taxpayers.
taxpayers.
CFO
CFO
Atwater
Atwater
modified
modified
thethe
membership
membership
of of
thethe
Treasury
Treasury
Investment
Investment
Committee
Committee
to to
include
include
members
members
outside
outside
thethe
Department
Department
of of
Financial
Financial
Services
Services
who
who
have
have
knowledge
knowledge
and
and
experience
experience
in in
finance
finance
and
and
investments.
investments.
Prior
Prior
to to
2011,
2011,
members
members
were
were
department
department
employees
employees
oror
former
former
employees.
employees.
Adding
Adding
members
members
from
from
outside
outside
thethe
department
department
allows
allows
forfor
more
more
diverse
diverse
input
input
into
into
making
making
recommendations
recommendations
regarding
regarding
investment
investment
policies.
policies.
CFO
CFO
Atwater
Atwater
also
also
created
created
a Chief
a Chief
Investment
Investment
Officer
Officer
position
position
to to
oversee
oversee
thethe
strategies
strategies
and
and
processes
processes
of of
thethe
investment
investment
pool
pool
asas
a whole
a whole
instead
instead
of of
at at
thethe
portfolio
portfolio
level,
level,
which
which
enhances
enhances
thethe
management
management
of of
allall
funds
funds
in in
thethe
pool.
pool.
Prior
Prior
to to
this
this
position,
position,
DFS
DFS
had
had
anan
investment
investment
professional
professional
overseeing
overseeing
thethe
internal
internal
investments
investments
and
and
another
another
overseeing
overseeing
thethe
external
external
investments.
investments.
Each
Each
were
were
very
very
good
good
at at
their
their
jobjob
but
but
wewe
were
were
lacking
lacking
a global
a global
investment
investment
vision
vision
forfor
thethe
Investment
Investment
Pool
Pool
asas
a whole.
a whole.
SBA
SBA INVESTMENT
INVESTMENT RETURNS
RETURNS
InIn
2011,
2011,
thethe
CFO
CFO
called
called
forfor
anan
external
externalreview
reviewofofthetheState
State
Board
Board
of of
Administration's
Administration's
risk
risk
management
management
processes
processes
and
and
financial
financial
controls.
controls.
A study
A study
conducted
conducted
byby
Crowe
Crowe
Horwath
Horwath
resulted
resulted
in in
63
63recommendations
recommendations– all
– all
of of
which
which
have
have
been
been
addressed.
addressed.
$24
$24billion
billion
, from
, from
$154
$154
billion
billion
in in
January
January
2011
2011
to to
$181
$181
billion
billion
in in
June
June
2014.
2014.
SBA
SBA
investments
investments
have
have
grown
grown
FRS
FRS
Pension
Pension
Fund
Fund
Net
Net
Asset
Asset
Value
Value
grew
grew
(gross)
(gross)
$45.3
$45.3billion
billionfrom
from
January
January
2011
2011
to to
June
June
2014.
2014.
Annualized
Annualized
return
return
from
from
January
January
2011
2011
to to
July
July
2014
2014
is is
+11%
+11%
. .
SOLARIS
SOLARIS(Internal
(Internal
Improvement
Improvement
Trust
Trust
Fund)
Fund)
CFO
CFO
Atwater
Atwater
created
created
anan
online
online
tracking
tracking
system
system
forfor
state-owned
state-owned
lands
lands
and
and
facilities
facilities
forfor
public
public
viewing.
viewing.
A facility
A facility
tracking
tracking
system
system
has
has
been
been
in in
place
place
since
since
April
April
2012.
2012.
The
The
State
State
of of
Florida
Florida
own
own
20,368
20,368
facilities.
facilities.
A land
A land
information
information
tracking
tracking
system
system
has
has
been
been
in in
place
place
since
since
February
February
2013.
2013.
The
The
State
State
of of
Florida
Florida
(excluding
(excluding
thethe
Department
Department
of of
Transportation)
Transportation)
owns
owns
5,602,540
5,602,540
acres.
acres.
Fostering Financial Prosperity
Florida’s Bottom Line 3
FIGHTING FRAUD
INSURANCE FRAUD ARRESTS
More than 5,000
insurance fraud arrests since 2011, an average of
3.8 insurance fraud arrests per day
95%
62%
87%
5,021
3,105
95 percent
of the insurance fraud
investigations presented
to the State Attorney since
2011 led to an arrest,
compared to
Last fiscal year,
2007-2010
2011-2014
87 percent .
of insurance fraud arrests
led to a conviction,
compared to
Insurance fraud arrests are up 62%
compared to the previous 4 years.
68% in 2010
82% in 2010
PER SONAL INJURY PROTECTION (PIP) REFORM
2007-10
2011-14
Nearly 2,000 PIP fraud arrests
have been made since January 2011, an average of
1.5 PIP fraud arrests per day
982
1,994
103%
PIP arrests have doubled over
the past 4 years, up 103% compared
to the previous 4 years.
160 fraudulent PIP clinics have been closed since January 2011
Estimated average decrease
of 13.2% in PIP premiums statewide as a result of HB 119.
-13.2%
Fostering Financial Prosperity
Florida’s Bottom Line 4
FIGHTING FRAUD
FIGHTING FRAUD
Y O F F I C E O F FI S C A L I N T E G R I T Y
ude False
CFO Atwater
Claims Act
expanded
prosecutions.
the duties
These
of the
are Criminal Law Unit for the first time to include False Claims Act prosecutions. These are
cases in which, generally, a state contractor has fraudulently billed a state agency.
Case Summaries:
ndependent
LivingCounty
of Southwest
Florida
Hillsborough
Association
for Retarded Citizens (HARC):
st): An
investigation
conducted
the Office
In 2013,
the Office
of Fiscal by
Integrity
conducted an investigation
egrityofresulted
in theHomelink
arrest of CILSF
Ex.with
Dir.the Agency for Persons
the HARC’s
Contract
st forwith
stealing
nearly $1million in state funds
Disabilities.
nter.
This was the first case ever pursued by
l, 2014
trial
resulted
in a False Claims Act.
DFS
under
the Florida
verdict of Aggravated
Resulted
in a settlement
Collar
Crime,
1st
of $310,000
due to false
e Grand
Theft and
billings to the State for ineligible clients.
unications Fraud.
Center for Independent Living of Southwest Florida
(Robert Bruist): An investigation conducted by the Office
of Fiscal Integrity resulted in the arrest of CILSF Ex. Dir.
Robert Bruist for stealing nearly $1million in state funds
from the Center.
Bruist’s April, 2014 trial resulted in a
guilty verdict of Aggravated
White Collar Crime, 1st
Degree Grand Theft and
Communications Fraud.
occurred on May 12th, 2014.
Sentencing occurred on May 12th, 2014.
2014,As
thea Office
Integrity
arrestedbythe
part ofof
anFiscal
ongoing
investigation
the Office of Fiscal
perator
of a cancer
in Department
Miami and of Corrections, Thomas
Integrity,
FDLEcenter
and the
Tomblin, Tyrone Walker and Christy Walker, were arrested in
On July 23, 2014, the Office of Fiscal Integrity arrested the
owner and operator of a cancer center in Miami and
d him with stealing nearly
2014,funds
and charged
with
multiple
felonies in a
000July
in state
intended
to help
screen
erican
womentofor
cancer.
Jacques
scheme
defraud
the
state ofAlbert
more Calixte
than $1.5 million.
ing invoices and other financial records submitted
rtment of Health between 2011 and 2013.
charged him with stealing nearly
$300,000 in state funds intended to help screen
Haitian American women for cancer. Jacques Albert Calixte
falsified billing invoices and other financial records submitted
to the Department of Health between 2011 and 2013.
P UB L I C ASS I STA N C E F R AU D
beenSince
prevented
January
or stopped
2011, $129
as a result
million
of Publicworth of fraudulent public assistance has been prevented or stopped as a result of Public
Assistance Fraud’s investigations. This type of fraud includes:
Disability fraud
SNAP Benefit tracking: illegal use of electronic Supplement
Nutrition Assistance Program benefits by recipients and merchants
Welfare fraud
R AUD
WOR K E R S ’ CO MP E N SAT I O N F R AU D
rkers’To
Compensation
protect Florida
fraud,
businesses
in 2012,from
CFO$1
Atwater
billion in rising costs associated with Workers’ Compensation fraud, in 2012, CFO Atwater
ing services
convened
industry
a special
who
task
were
force
aiding
to review
in complex
the practices of bad actors in the check cashing services industry who were aiding in complex
egislation
workers’
wascompensation
passed to require
premium
real time
fraud
check
schemes. As a result of the working group, legislation was passed to require real time check
udulent
cashers
activity.
to log check cashing data into a statewide data base designed to prevent fraudulent activity.
ell In
companies
which an
of Fraud investigated more than 38 shell companies in which an excess of
FY 2013–2014, theinDivision
ofexcess
Insurance
d. $500 million dollars worth of fraudulent transactions were identified.
11
15 Money service business owners, 18 facilitators
17
and 14 shell company owners were criminally charged.
13
Fostering Financial Prosperity
Money service
business owners
11
17
Facilitators
Shell company
owners
13
Florida’s Bottom Line 5
PROTECTING CONSUMERS
CONSUMER HELPLINE
$87
$62
million
2007-10
2011-14
million
More than
1 million
consumer calls answered
since 2011
The Helpline has recovered
Returned
Advocated on behalf of
70,000 Floridians
since 2011
$25 million
$87 million
to insurance consumers
since 2011
more for consumers
since 2011 than in the
preceding 4 years
H E LP ING SEN IORS
CFO launched ‘On Guard for Seniors’ to educate Florida’s seniors about
financial planning and protection.
DFS has hosted 45
Operation
S.A.F.E. workshops throughout
Florida to Stop Adult Financial Exploitation.
Since 2011, DFS has educated nearly
52,000 seniors through its various
senior outreach initiatives.
U NCLAIMED PROPER TY
RE TURNED T O CON SUME R S
$824 million in unclaimed property has been returned to rightful
owners since 2011. Nearly 35% of all unclaimed property returned since the
$181 million more
$824 Million
in unclaimed property has been
returned to rightful owners over
the past 4 years than in the
preceding 4 years
program’s creation in 1961 has occurred since 2011.
LI FE INSURA NCE SE TTL E ME NT
Since 2011, in conjunction with the Office of Insurance Regulation, more than $106 million
in unclaimed life insurance benefits has been recovered as a result of settlements reached with
life insurance companies over the inappropriate use of the Social Security Death Master File.
3,900 unclaimed property accounts were claimed and paid as a result of the settlement agreements
11 settlement agreements have been reached with companies such as John Hancock, Nationwide, and MetLife.
DIV ISION OF REHA B & L I QU I DATI ON
Paid claims that resulted in more than $113 million
returned to the consumers’ pockets since 2011.
38 companies are currently in receivership including
Returned more than $7.4 million
in premiums to help policyholders find
replacement coverage since 2011.
Sunshine State Insurance Co., Physicians United, and Universal
Health Care.
Fostering Financial Prosperity
Florida’s Bottom Line 6
FOSTERING
FOSTERINGECONOMIC
ECONOMICGROWTH
GROWTH&&PROSPERITY
PROSPERITY
PR
PROTECTING
OTECTING FLORIDA’S
FLORIDA’STOP
TOPBOND
BONDRATING
RATING
AA
AA
AA
One
One
ofof
only
only
1515
states
states
C R EDI
CR TEDI
R ATI
T RNG
ATI NG
currently
currently
withwith
a top
a top
‘AAA’
‘AAA’
credit
credit
rating
rating
from
from
S&PS&P
One
One
ofof
only
only
8 states
8 states
to maintain
to maintain
its its
‘AAA’
‘AAA’
credit
credit
rating
rating
from
from
S&PS&P
since
since
2005.
2005.
DEBT
DEBTREDUCTION
REDUCTION
Reduced
Reduced
statestate
debtdebt
by by
$4$4
billion
billion
overover
the the
pastpast
fourfour
fiscal
fiscal
years.
years.
$1.3
$1.3
billion
billion
Saved
Saved
an additional
an additional
in debt
in debt
service
service
since
since
2011,
2011,
as aas
result
a result
of of
refunding
refunding
transactions
transactions
to refinance
to refinance
outstanding
outstanding
debtdebt
at lower
at lower
interest
interest
rates
rates
$1.3
$1.3
billion
billion
COMPREHENSIVE
COMPREHENSIVEREGULATORY
REGULATORYREFORM
REFORM
CFOCFO
Atwater
Atwater
directed
directed
regulatory
regulatory
reviews
reviews
to ensure
to ensure
laws,
laws,
rules,
rules,
policies
policies
andand
procedures
procedures
are meeting
are meeting
the the
needs
needs
of regulated
of regulated
industries
industries
without
without
being
being
overly
overly
burdensome
burdensome
or unnecessarily
or unnecessarily
complex.
complex.
Since
Since
2011,
2011,
DFS
DFS
has
has
examined
examined
1,350
1,350
rules,
rules,
resulting
resulting
in in
8686
repeals
repeals
andand
multiple
multiple
amendments
amendments
in order
in order
to eliminate
to eliminate
rules
rules
thatthat
were
were
duplicative
duplicative
and/or
and/or
unnecessarily
unnecessarily
burdened
burdened
business.
business.
REPREAPLEEADLED
STREAMLINED
STREAMLINEDLICENSING
LICENSING
In 2012,
In 2012,
DFS
DFS
collapsed
collapsed
4949
insurance
insurance
license
license
types
types
into
into
7 to7ease
to ease
of license
of license
applications,
applications,
revise
revise
continuing
continuing
education
education
requirements
requirements
to better
to better
tailor
tailor
curriculum
curriculum
to agent
to agent
needs,
needs,
eliminate
eliminate
a duplicative
a duplicative
andand
expensive
expensive
surety
surety
bond
bond
requirement,
requirement,
change
change
report
report
dates
dates
to increase
to increase
consistency,
consistency,
andand
provide
provide
for increased
for increased
electronic
electronic
communications.
communications.
Fostering Financial Prosperity
Florida’s Bottom Line 7
FOSTERING ECONOMIC GROWTH & PROSPERITY
IMP ROV ED BU SINE SS P RAC TIC ES
Cut the licensing application
review process time in half,
Lowered exam costs by
from 5-7 days
to 1-2 days
1-2
to allow qualified license
applicants to begin
working sooner.
days
25 percent,
or an estimated
$500,000 annually.
25%
745,604
active licenses
Waived application fees for veterans
and families of active duty military
RE G ULATORY R E LIEF
STOP WORK ORDER REFORM
In 2014, workers' compensation reform was passed to provide regulatory
relief to employers while ensuring employees are protected.
Decreases in
workers’ comp assessment
rates since 2012
Allows employers to get back to
work faster by making a $1,000 down payment on their
penalty, so long as they have secured workers’ compensation
coverage.
Credits the assessed penalty with the
amount the employer pays for the new workers’ compensation
coverage for ‘first time offenders’.
Modifies the statutory penalty formula to
make business records easier and faster to produce
Gives employers an additional five
days by which to comply with a business records request.
END E D I NSU R ANCE TAX
(Hurricane Catastrophe Fund Emergency Assessment)
As a member of the Florida Cabinet, CFO Atwater voted
to end the Florida
Hurricane Catastrophe Fund Emergency Assessment
one year early, on January 1, 2014, saving policyholders more than $400 million
in taxes.
Fostering Financial Prosperity
2015
JA NUA RY
1
Florida’s Bottom Line 8
FIRE PREVENTION, EDUCATION & ARSON INVESTIGATION
A R SO N
Since 2011, the Bureau of Fire and Arson Investigations
responded to 12,856 fire incidents, of which 5,046 were
determined to be incendiary fires resulting in 1,095 arson
arrests.
12,856
Fire incidents
1,095 arson arrests made since 2011.
5,046
Incendiary fires
1,095
Arson arrests
FO R ENSI C FI R E EX PLOS IVES
AN D AN ALYSI S LABORATORY
Average turnaround to complete a sample analysis in our
Florida
Average
laboratory is 5 days, significantly lower than the
national average turnaround of 55.5 days.
National
average
5 days
55.5 days
The Arson Clearance Rate is currently 37%,
compared to 17%
in 2010
Last year, more than 12,000 lab samples requests were analyzed and processed.
HI G H ER STANDAR DS
& TRAIN I NG
Florida State Fire College is now recognized as a national
leader in
training, education and fire service delivery.
Since 2011, the division has enhanced the volunteer firefighter training program, adopted
curricula for a Fire Code Administrator program (first in the nation), and partnered with
several Florida public colleges to form a Fire Service Higher Education Consortium. The
Bureau of Fire Standards and Training has also added several new Pro-Board accredited
courses since 2011.
This has created more course opportunities for career and volunteer firefighters and provides additional higher education
opportunities for Fire Service senior leaders. Students are assured of the highest fire service training standards, which are
recognized internationally, by having accreditation available.
Fostering Financial Prosperity
Florida’s Bottom Line 9
PLANNING FOR THE FUTURE
ENHANCING FLORIDA’S FINANCIAL LITERACY
47%
More than 1 in 6
U.S. students do not
meet a basic level of
financial literacy
47 percent
of Americans say managing
their debt is a significant
obstacle to achieving the
‘American Dream’
58%
58 percent
of Floridians have not
tried to figure out their
retirement savings needs
CFO Atwater has made it a priority to improve the financial literacy of Floridians from every life stage. He has already helped establish
programs to help educate Floridians about retirement savings, education costs, health insurance, hurricane preparation, financial fraud
prevention, as well as a program for kids as young as four and another program to help active military with their finances.
CFO Atwater is already planning to expand these financial literacy programs into high school classrooms and universities and to
develop additional financial education workshops for professionals and Spanish-speaking communities.
REPLACING THE FLORIDA ACCOUNTING
INFORMATION RESOURCE (FLAIR)
CFO Atwater is spearheading the replacement of the Florida Accounting Information Resource, also known as FLAIR. The program,
which performs Florida's accounting and financial management functions, came online in 1981 and was written with 1970’s technology.
Following CFO Atwater’s recommendation, the Florida Legislature and Governor have dedicated funds to allow the Department of
Financial Services to replace FLAIR, which may take up to seven years due to the sophistication of the program. The new system will
allow the state to maximize interest, decrease transaction fees, improve audit effenciency and ensure Florida has a reliable program to
conduct the state’s financial functions.
50 MILLION
accounting transactions
FLAIR processes more than
50 million
accounting transactions per year
Fostering Financial Prosperity
More than
$82 billion
is annually dispersed
through FLAIR
FLAIR has more than
16,000 users statewide
(up to 5,000 concurrently)
Florida’s Bottom Line 10
PLANNING FOR THE FUTURE
PLANNING FOR THE FUTURE
DA’S
IMPROVING FLORIDA’S
ON
INSURANCE
MENT
ENVIRONMENT
vocated
During
for insurance
the 2014 Legislative
reforms to Session,
make Florida’s
CFO Atwater
insurance
advocated
marketfor
more
insurance reforms to make Florida’s insurance market more
moreconsumer
transparent.
friendly
For example,
and makea the
Homeowner
claim-filing
Claims
process
Billmore
of Rights
transparent.
was created
For example, a Homeowner Claims Bill of Rights was created
y should
to provide
take inpolicyholders
the claim-filing
advice
process.
about
CFO
what
Atwater
steps they
has also
should
been
take
vocal
in the
about
claim-filing process. CFO Atwater has also been vocal about
ians.the
He need
has asked
to lower
for aproperty
transparent
insurance
analysis
costs
of rate
for Floridians.
increases and
Hecalled
has asked
for for a transparent analysis of rate increases and called for
statelower
and lower
ratesreinsurance
as a result ofcosts
fewer
forstorms
insurers.
impacting
CFO Atwater
the state
remains
and lower
committed
reinsurance costs for insurers. CFO Atwater remains committed
ce industry
to continuing
more consumer-friendly.
these efforts to make
For Florida’s
example,insurance
plans are already
industryunderway
more consumer-friendly.
to:
For example, plans are already underway to:
ir post-claim Seek
benefits
protections
to a thirdfor
party
consumers
(assignment
assigned
of benefits)
their post-claim benefits to a third party (assignment of benefits)
ts from any abusive
Seek guidelines
practices, designed
for example,
to protect
when an
claimants
insurance
from
company
any abusive practices, for example, when an insurance company
tion Under Oath
requires
whenathere
claimant
are no
to clear
submit
directions
to an Examination
or guidelines.
Under Oath when there are no clear directions or guidelines.
o make sure that
Review
potential
insurance
coverage
policy
changes
form filings
are fairly
to try
and
toclearly
make sure
presented
that potential coverage changes are fairly and clearly presented
n a way to assure
to consumers,
that the consumer
with theiswording
able to make
presented
an informed
in a waydecision
to assure
onthat the consumer is able to make an informed decision on
verage from one
whether
policytoyear
accept
to the
or next.
reject any change in coverage from one policy year to the next.
to make sure that
Review
the rate
premium
filingsa on
consumer
a selected
pays
basis
is appropriate
to try to make
forsure
the that the premium a consumer pays is appropriate for the
coverage received.
rotection thatLook
is allowed
at companies’
through statute
use of the
to make
trade sure
secret
that
protection
there is no
that
abuse
is allowed through statute to make sure that there is no abuse
nsparency. to the detriment of legitimate and proper transparency.
information on
Survey
contracting
all residual
practices,
market
staff
entities
compensation,
to gather information
etc., to assure
onthat
contracting practices, staff compensation, etc., to assure that
vel of transparency.
these entities are meeting the appropriate level of transparency.
There are 5.7 million residential and commercial property
cial property
billion
insurance policies in Florida, representing $10.5 billion
in written premium.
PO L I CY
P OLICY
P OLICY
P OLICY
POLICY
POLICY
POLICY
POLICY
POLICY
POLICY
POLICY
POLICY
DERAL
ESTABLISHING
AND LOCAL
FEDERAL AND LOCAL
HIPS
F RAUD
TO FIGHT
PARTNERSHIPS
FRAUD
TO FIGHT FRAUD
10% 1.7%
10%
Florida has
icaid Fraud
is estimated
to account
Medicaid Fraud is estimated to account for
The amount
of medical
fraud for
and abuse
occurring across the country is estimated highest mortgage
10 percent
of Florida’s Medicaid
up to 10 percent of Florida’s Medicaid
to be 1.7 percent of the US GDP, fraud investigation
dget, or $2.1 billion annually
budget, or $2.1 billion annually
rate in the nation
or $272 billion annually
Florida has
highest mortgage
fraud investigation
rate in the nation
mustCFO
work
Atwater
together
understands
and be proactive
law enforcement
to fight against
agencies
ever-evolving
must work
fraud
together and be proactive to fight against ever-evolving fraud
ederal
schemes.
and local
CFO
partnerships
Atwater has
to already
fight against
helped
PIP
establish
fraud, public
federalassistance
and localfraud
partnerships to fight against PIP fraud, public assistance fraud
er is focused
and other
onprominent
furtheringcategories
these relationships
of fraud. CFO
and building
Atwaternew
is focused
partnerships
on furthering
to
these relationships and building new partnerships to
stay ahead of the fight against fraud.
Fostering Financial Prosperity
Florida’s Bottom Line 11
ABOUT THE FLORIDA DEPARTMENT OF FINANCIAL SERVICES
The Chief Financial Officer is a constitutional officer who serves as Florida’s
financial watchdog and is responsible for the management and policies of the Florida
Department of Financial Services. His duties include but are not limited to monitoring state
investments and spending, as well as keeping track of the more than $70 billion that comes into
and goes out of state government each year.
RESPONSIBILITIES OF THE CHIEF
FINANCIAL OFFICER ARE:
•
•
•
•
•
•
•
•
•
•
Provide leadership and management direction as a Cabinet member
Inform and protect insurance consumers through prompt, thorough and courteous resolution of insurance consumer complaints,
claims and inquiries through intervention with insurance representatives and companies
Enforce stringent licensing requirements for agents, solicitors and adjusters
Assist fire prevention and protection professionals to better serve the citizens of Florida in all areas of fire safety
Keep all state funds and securities, disburse state funds and invest surplus funds for Florida’s benefit
Maintain custody of all bonds and securities owned by or deposited by the various state agencies, banks, insurance companies and
others required by law
Provide a program of risk management and insurance protection for state buildings and automobiles, workers’ compensation
coverage for state employees, and general liability and federal civil rights liability insurance coverage for state agencies
Investigate cases of waste, fraud and abuse in state government
Safeguard unclaimed property until the rightful owner or heir claims it
Oversee cemeteries and for-profit funeral homes that sell pre-need contracts
DFS MISSION STATEMENT
To safeguard the integrity of the transactions entrusted to the Department of Financial Services and to ensure that every program within the
Department delivers value to the citizens of Florida by continually improving the efficiency and cost effectiveness of internal management
processes and regularly validating the value equation with our customers.
11 DFS DI VISIONS
Division of Accounting and Auditing
Division of Agent and Agency Services
The mission of the Division of Accounting and Auditing is to
safeguard public assets, settle the state’s financial obligations,
report financial information, and improve accountability of the
state.
The Division of Agent and Agency Services’ mission is to
protect the public and insurance industry by timely and
accurately licensing competent individuals and entities and
fairly investigating alleged violations of Florida’s insurance
laws.
The Division of Accounting and Auditing houses the Bureau of
Unclaimed Property, which holds accounts valued at more than
$1 billion, mostly from dormant accounts in financial institutions, insurance and utility companies, securities and trust
holdings. Unclaimed money is deposited into the state school
fund, where it is used for public education. There is, however,
no statute of limitations, and citizens have the right to claim
their property any time at no cost.
The Division is made up of the Bureau of Licensing and the
Bureau of Investigation. The Bureau of Licensing administers
the insurance laws, rules and regulations relating to license
qualification, pre-licensing and continuing education and is
responsible for the licensure and appointment of all agents,
customer representatives, adjusters, reinsurance
intermediaries, service representative, insurance agencies,
certain field insurance representatives and insurance-related
entities and firms authorized to transact insurance in Florida.
The Bureau of Investigation is statutorily responsible for the
investigation of alleged violations of the Florida Insurance
Code by licensed and unlicensed persons.
Fostering Financial Prosperity
Florida’s Bottom Line 12
ABOUT THE FLORIDA
ABOUTDEPARTMENT
THE FLORIDAOFDEPARTMENT
FINANCIAL SERVICES
OF FINANCIAL SERVICES
umer
Division
Services
of Consumer Services
Division of Rehabilitation
Division
& Liquidation
of Rehabilitation & Liquidation
Services
The Division
serves asof
a resource
Consumer
and
Services
guide serves asThe
a resource
Department
and guide
of Financial Services
The Department
serves as Receiver
of Financial
of any
Services serves as Receiver of any
g with
forissues
Floridians
such as:
when dealing with issues suchinsurer
as:
placed into receivershipinsurer
in the State
placed
ofinto
Florida.
receivership in the State of Florida.
ons or complaints
• Insurance questions or complaints
ance
• Purchasing insurance
Division of Risk Management
Division of Risk Management
rm
• Health Care Reform
The mission of the Risk Management
The mission
Program
of the
is toRisk
ensure
Management
that
Program is to ensure that
s Assistance
• Holocaust Victims Assistance
participating State of Florida agencies
participating
receiveState
technical
of Florida
assistance
agencies receive technical assistance
in managing risk, and quality workers’
in managing
compensation,
risk, and quality
liability,workers’ compensation, liability,
dness
• Disaster preparedness
federal civil rights, automobile liability,
federal civil
and rights,
property
automobile
insuranceliability, and property insurance
coverage at reasonable rates by coverage
providingatself-insurance,
reasonable rates
purchase
by providing self-insurance, purchase
ral,Division
Cemetery
of Funeral, Cemetery
of insurance, and claims administration.
of insurance, and claims administration.
vices
& Consumer Services
The Division of Risk Management
Theconsists
Division
ofof
the
Risk
Bureau
Management
of Risk consists of the Bureau of Risk
emetery
The&
Division
Consumer
of Funeral,
ServicesCemetery
is
& Consumer
Services
isLoss Prevention,Financing
Financing
and
which provides
and Loss
administrative
Prevention, which provides administrative
the death
responsible
care industry.
for regulating the death care industry.
support to the Division of Risk Management;
support to thethe
Division
Bureau
ofof
Risk
State
Management; the Bureau of State
Employee Workers’ Compensation
Employee
Claims,Workers’
which isCompensation
responsible Claims, which is responsible
ance
Division
Fraud of Insurance Fraud for the administration of all workers’
for thecompensations
administrationclaims
of all workers’
filed
compensations claims filed
by state employees
and volunteers
by state
who employees
are injuredand
on the
volunteers
job; and who are injured on the job; and
Fraud
The
is the
Division
law enforcement
of Insurancearm
Fraud
under
is the law enforcement
arm under
the Bureau
of State
Property
BureauClaims,
of Statewhich
Liability
is and Property Claims, which is
ponsible
the for
Department
investigating
and all
is responsible
types of
for investigating
all types
of Liability andthe
responsible
theof
investigationresponsible
and resolution/settlement
for the investigation
of and resolution/settlement of
regions
insurance
located fraud.
throughout
It has the
six regions
state of located throughout
thefor
state
liability
and and
property
liabilityor
and
against
property
stateclaims
agencies
involving
and or against state agencies and
by a law
Florida,
enforcement
each commanded
captain; and
by a23law enforcement
captain;
23 claims involving
a lieutenant.
squads, each
Additionally,
supervised
thebyDivision
a lieutenant. Additionally,
the Division
universities.
universities.
ers and
consists
46 civilian
of 150support
sworn officers
staff members.
and 46 civilian support staff members.
The Coverages provided by the The
Division
Coverages
include
provided
the following
by the Division include the following
ance fraud
The various
the Division
types of
investigates
insurance fraud the Division
types:investigates
types:
include:
• Property
• Property
•
PIP Fraud
• General Liability
• General Liability
nsation Fraud
• (includes
Workers' Compensation
claimant and Fraud (includes claimant and
• Fleet Automobile Liability • Fleet Automobile Liability
nce)
premium avoidance)
• Federal Civil Rights/Employment
• Federal
Discrimination
Civil Rights/Employment Discrimination
•
Vehicle Fraud
• Court Awarded Attorney Fees
• Court Awarded Attorney Fees
d
•
Application Fraud
includes insurance
•
Licensee
agents
Fraud
and (includes
public insurance agents and public
adjusters)
Division of State Fire
Division
Marshal
of State Fire Marshal
aud
•
Homeowner's Fraud
The
Division
of
State
Fire
Marshal’s
The
Division
mission
is
of
to
State
reduce
Firethe
Marshal’s
loss mission is to reduce the loss
d
•
Healthcare Fraud
of life and property to fire and other
of lifedisasters
and property
statewide
to firethrough
and other disasters statewide through
tity Fraud•
Unauthorized Entity Fraud
internal and external leadership,
internal
standards
andand
external
training,
leadership, standards and training,
prevention and education, and fire
prevention
and arson
and
investigation.
education, and fire and arson investigation.
c Assistance
Division ofFraud
Public Assistance Fraud
istance
The
Fraud
Division
safeguards
of Public
theAssistance
public andFraud safeguards
the public
Division
of and
TreasuryDivision of Treasury
st acts
businesses
of public in
assistance
Florida against
fraud and
actsthe
of public assistance fraud and the
Thefederal
Treasury
The Treasury
system;
operates
administers
a cash management
the
system; administers the
mes have
resulting
by enforcing
impact those
federalcrimes
and state
have by enforcing
andoperates
state a cash management
receipt
and disbursement of state
receipt
moneys;
andinvests
disbursement
excess funds
of state
and
moneys; invests excess funds and
eligibility
criminal
forlaws
public
in assistance.
relation to eligibility for public
assistance.
pays all state obligations as directed
pays by
all the
state
Division
obligations
of Accounting
as directed by the Division of Accounting
h the The
Department
Divisionof
partners
Children
with
andthe Department of
& Children
Auditing. and
The Treasury also operates
& Auditing.
a large
Thecollateral
Treasury also operates a large collateral
ealthFamilies,
Care Administration,
the Agency for
theHealth Care Administration,
the program to protectmanagement
management
the financialprogram
assets pledged
to protect
by the financial assets pledged by
d the Early
Department
Learning
of Health,
Coalitions
andtothe Early Learning
Coalitions
entities
doingtobusiness in the state
entities
or with
doing
thebusiness
state. Lastly,
in the
the
state or with the state. Lastly, the
ms administered
investigate fraud
by those
in programs
entities. On
administered
the
by
those entities.
On
the
Division
manages
a supplemental
Division
retirement
manages
program
a supplemental
for State retirement program for State
withFederal
the United
levelStates
PAF partners
Department
withofthe United States
Department
of
and other
public sector
employees.
and other public sector employees.
ritionAgriculture-Food
Services, Social Security
and Nutrition Services, Social Security
tment
Administration,
of Health and Human
and Department
Services. of Health and
Human Services.
Division
of Workers’Division
Compensation
of Workers’ Compensation
he following
PAF investigates
programs:fraud in the following programs:
The Division of Workers’ Compensation’s
The Division
mission
of Workers’
is to actively
Compensation’s mission is to actively
ensure
self-execution
workers'
thecompensation
self-executionsystem
of the workers' compensation system
Temporary
• Assistance
Cash Assistance/Temporary
for Needy Families Assistance
forthe
Needy
Families of theensure
through education and informing
through
all stakeholders
education of
and
their
informing
rights all stakeholders of their rights
(TANF)
and
responsibilities,
dataresponsibilities,
to deliver exceptional
leveraging
valuedata
to to deliver exceptional value to
utritional Assistance
•
Supplemental
ProgramNutritional
(SNAP) Assistance
Program
(SNAP) leveraging and
and
customers
holding parties
and stakeholders,
accountableand holding parties accountable
as Food Stampsformerly known as Food Stamps our customers and stakeholders,our
for meeting their obligations. Itfor
consists
meeting
of the
their
Bureau
obligations.
of
It consists of the Bureau of
nt Fraud •
Medicaid recipient Fraud
Compliance, the Bureau of DataCompliance,
Quality and the
Collection,
Bureau the
of Data
Bureau
Quality and Collection, the Bureau
AP program
• benefits
Trafficking in SNAP program benefits
of Employee Assistance and Ombudsman
of Employee
Office,
Assistance
the Bureau
and Ombudsman
of
Office, the Bureau of
Care
•
Subsidized Day Care
Financial Accountability, the Bureau
Financial
of Monitoring
Accountability,
and Audit,
the Bureau
and of Monitoring and Audit, and
program •
School Readiness program
the Office of Medical Services. the Office of Medical Services.
Program •
Voluntary Pre-K Program
ncial Assistance
•
Emergency
for Housing
Financial Assistance for Housing
rgy Assistance
•
Low Income Energy Assistance
ce/Emergency
•
Disaster
SNAP benefits
Assistance/Emergency SNAP benefits
bility Investigations
•
Cooperative
(SocialDisability
Security Investigations (Social Security
and Medicaid Disability,
Eligibility SNAP, and Medicaid Eligibility
Fostering Financial Prosperity
Florida’s Bottom Line 13