S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7797
 
                             I N  S E N A T E
 
                             January 11, 2022
                                ___________
 
 Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the insurance law, in  relation  to  defining  the  term
   property/casualty  insurance and providing for the electronic delivery
   of a policy notice or document by an insurer to a party  who  consents
   to such delivery

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subparagraph (B) of paragraph  1  of  subsection  (a),  and
 subsections  (b),  (c),  (e),  (f),  (g)  and (l) of section 3458 of the
 insurance law, as added by a chapter of the laws of  2021  amending  the
 insurance  law  relating  to  electronic  delivery  of property/casualty
 insurance notices, as proposed in legislative bills numbers S. 653-A and
 A. 651-A, are amended and a new paragraph 3 is added to  subsection  (a)
 to read as follows:
   (B) posting on an electronic network or site accessible via the inter-
 net,  mobile  application, computer, mobile device, tablet, or any other
 electronic device, together with separate notice of  the  posting  which
 shall  be  provided by electronic mail to the address at which the party
 has consented to receive notice or  by  any  other  ELECTRONIC  delivery
 method that has been consented to by the party.
   (3)  "PROPERTY/CASUALTY  INSURANCE" MEANS BASIC KINDS OF INSURANCE AND
 NON-BASIC KINDS OF INSURANCE, AS DEFINED IN SECTION  FOUR  THOUSAND  ONE
 HUNDRED ONE OF THIS CHAPTER, PROVIDED THAT "PROPERTY/CASUALTY INSURANCE"
 SHALL  NOT INCLUDE ACCIDENT AND HEALTH INSURANCE AS DEFINED IN PARAGRAPH
 THREE OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN  OF
 THIS CHAPTER.
   (b) Subject to the requirements of this section, any notice to a party
 or  any other document required under [applicable law] THIS CHAPTER in a
 property/casualty insurance transaction or that is to serve as  evidence
 of  property/casualty  insurance coverage may be delivered[, stored, and
 presented] by electronic means so long as it meets the  requirements  of
 article  three of the state technology law.  WHERE THIS CHAPTER REQUIRES
 THAT NOTICE BE MAILED OR DELIVERED TO AN ADDRESS SHOWN  IN  THE  POLICY,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD05115-04-2
 S. 7797                             2
 
 THE NOTICE MAY BE DELIVERED BY ELECTRONIC MEANS TO AN ELECTRONIC ADDRESS
 NOT SPECIFIED IN THE POLICY.
   (c)  Delivery  of a notice or document in accordance with this section
 shall be considered equivalent to any  delivery  method  required  under
 [applicable  law]  THIS  CHAPTER,  OTHER THAN SECTION THREE THOUSAND ONE
 HUNDRED ELEVEN OF THIS CHAPTER, including delivery by first class  mail;
 first  class mail, postage prepaid; certified mail; certificate of mail;
 or certificate of mailing.
   (e) (1) BEFORE A NOTICE OR DOCUMENT IS DELIVERED BY ELECTRONIC  MEANS,
 AN INSURER SHALL OBTAIN A PARTY'S CONSENT TO DELIVER THAT KIND OF NOTICE
 OR  DOCUMENT  BY ELECTRONIC MEANS. A PARTY'S CONSENT TO RECEIVE ONE TYPE
 OF NOTICE OR DOCUMENT SHALL NOT BE CONSTRUED AS A  BLANKET  CONSENT  FOR
 EVERY KIND OF NOTICE AND DOCUMENT TO BE DELIVERED BY ELECTRONIC MEANS. A
 PARTY'S  CONSENT  SHALL ONLY APPLY TO THE TYPES OF NOTICES AND DOCUMENTS
 IDENTIFIED IN THE CLEAR AND CONSPICUOUS INFORMATION  STATEMENT  PROVIDED
 TO  THE  CONSENTING  PARTY, AS REQUIRED BY SUBPARAGRAPH (B) OF PARAGRAPH
 TWO OF SUBSECTION (D) OF THIS SECTION.
   (2) Any electronic mail being  sent  by  an  insurer  to  a  party  in
 connection  with  the  delivery  of  a  cancellation notice, non-renewal
 notice or conditional renewal notice delivered by electronic means shall
 include in the subject line and body  of  the  communication  clear  and
 conspicuous  language  alerting the receiving party as to the importance
 of the communication and the type of notice being delivered BY ELECTRON-
 IC MEANS to such party [electronically].
   (f) This section does not affect requirements related  to  content  or
 timing  of  any  notice or document required under [applicable law] THIS
 CHAPTER.
   (g) If a provision of this chapter [or  applicable  law]  requiring  a
 notice  or document to be provided to a party expressly requires verifi-
 cation or acknowledgment of receipt  of  the  notice  or  document,  the
 notice  or  document  may  be  delivered by electronic means only if the
 method used provides for verification or acknowledgment of receipt.
   (l) An insurer shall deliver a notice or document by any other  deliv-
 ery method permitted by law other than DELIVERY BY electronic means if:
   (1)  the insurer attempts to deliver BY ELECTRONIC MEANS the notice or
 document [by electronic means] and has a reasonable basis for  believing
 that the notice or document has not been received by the party[,]; or
   (2)  the  insurer  becomes  aware  that  the  electronic  mail address
 provided by the party is no longer valid.
   § 2. This act shall take effect on the  same  date  and  in  the  same
 manner  as  a  chapter  of  the laws of 2021, amending the insurance law
 relating to electronic delivery of property/casualty insurance  notices,
 as  proposed  in  legislative bills numbers S. 653-A and A. 651-A, takes
 effect.