NY State Senate Bill S5249B

Archive: Last Bill Status - Vetoed by Governor

Introduced
In Committee
On Floor Calendar
- Passed Senate
- Passed Assembly
Delivered to Governor
Vetoed by Governor

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Actions

view actions (26)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Nov 28, 2016	vetoed memo.274
Nov 16, 2016	delivered to governor
May 16, 2016	returned to senate passed assembly
May 05, 2016	ordered to third reading cal.511 substituted for a8076b
May 04, 2016	referred to codes delivered to assembly passed senate
May 03, 2016	advanced to third reading
Apr 12, 2016	2nd report cal.
Apr 11, 2016	1st report cal.549
Jan 27, 2016	print number 5249b
Jan 27, 2016	amend and recommit to insurance
Jan 11, 2016	print number 5249a
Jan 11, 2016	amend (t) and recommit to insurance
Jan 06, 2016	referred to insurance returned to senate died in assembly
Jun 15, 2015	referred to codes delivered to assembly passed senate
May 20, 2015	advanced to third reading
May 19, 2015	2nd report cal.
May 18, 2015	1st report cal.688
May 11, 2015	referred to insurance

Votes

Bill Amendments

Original

B (Active)

Original

B (Active)

Co-Sponsors

S5249 - Details

See Assembly Version of this Bill:: A8076
Law Section:: Insurance Law
Laws Affected:: Add §§3455 & 3456, Ins L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S2526, A1683
2019-2020: A7877
2021-2022: A651

S5249 - Summary

Relates to electronic delivery of property/casualty insurance notices and posting property/casualty insurance policies on the internet; authorizes electronic delivery of insurance notices with consent and the posting of policies on the internet if certain conditions are met.

S5249 - Sponsor Memo

BILL NUMBER:S5249

TITLE OF BILL:

An act to amend the insurance law, in relation to electronic delivery of
insurance notices and posting insurance policies on the internet

PURPOSE:

To permit insurance notices and documents to be delivered electronically
with policyholder consent. To allow state-approved insurance policies to
be  accessed on the internet instead of being mailed unless specifically
requested by the policyholder

SUMMARY OF PROVISIONS:

Section 1 adds new section 3114  to  the  Insurance  Law.  Section  3114
permits  insurers  to  deliver insurance notices and documents electron-
ically with the policyholder consent.

Section 2 adds new section 3455  to  the  Insurance  Law.  Section  3455
permits a property-casualty insurance company to elect to post state-ap-
proved  insurance  policies  and  endorsements  on the company's website
Policyholders would be able to request a free paper copy of  the  insur-
ance policy.

Section 3 is the effective date.

JUSTIFICATION:

Section 1: There has been an increasing trend in today's technologically
advanced  society toward communicating electronically.  Insurance compa-
nies would like to provide the option to their  customers  of  receiving
notices and documents electronically.

Currently, the Department of Financial Services has advised that the use
of  electronic communications in insurance related transaction is gener-
ally permitted, as long consumers have consented to doing business elec-
tronically. However, there is a significant exception to this allowance.
Electronic delivery of notices is not allowed if a statute or regulation
specifically provides for a document or notice to be "mailed." There are
several statutes  and  regulations  that  still  reference  delivery  by
"mail".

This bill would allow all insurance notices and document to be delivered
electronically as long as the consumer affirmatively consents to receiv-
ing such notices and documents electronically. The bill includes several
safeguards  designed  to  protect the consumer.  This includes requiring
insurers to provide consumers with a clear notice of their rights before
consent is given. Consumers would have the right to withdraw consent  at
any  time  Before  giving consent the consumer must be provided with the
hardware and software requirements to receive documents  electronically.

Also,  the  consumer must consent electronically in a manner that demon-
strates that they can access the information in the electronic form that
will be used for electronic document delivery. In the event the  insurer
makes  hardware  of  software change, they must notify the consumer. Any
time an insurer has reason to believe the  electronic  transmission  has
failed  to  reach the consumer, they must deliver the notice or document
by another delivery method.

Section 2: Each year property and casualty insurance companies print and
then mail millions of  policy  contract  booklets  to  their  customers.
Often, these policies can exceed fifty pages in length.  Surveys suggest
consumer's  often toss their policies into the recycle bins without ever
reading them. While e-commerce laws have helped to eliminate some of the
waste, the process still has serious limitations.

This legislation would allow the posting of standard approved  insurance
policies  and  endorsements on the insurance company's website, provided
that the policy remains accessible for as  long  as  the  policy  is  in
force.  Expired policies and endorsements would be required to be avail-
able for five years, and upon request after that.

The policies and endorsements must be posted in a  manner  that  enables
the  policyholder  to  print  and save the policy and endorsements using
programs or applications widely available on the internet  and  free  to
use.  The insurance company is required to provide with each declaration
page a description of the exact policy and endorsement  forms  purchased
by  the  insured,  a  description of the policyholder's right to receive
upon request and without charge, a paper copy of the policy and endorse-
ments by mail and the internet address where their policy  and  endorse-
ments are posted.

Personal  identifying  information would not be posted. This legislation
applies to insurance policy and endorsements as approved by the  Depart-
ment of Financial Services.

The benefits to the insurance consumer are many. First, for the prospec-
tive  insurance  buyer,  he or she can look at the approved policies and
better compare the provisions of competitors. Second,  this  legislation
is  environmentally  friendly; it reduces unnecessary and unwanted mail-
ings. Third, there are no privacy concerns,  as  policy  contracts  arid
endorsements do not contain any personal identifying information Fourth,
electronic  policy  contracts  create  additional  features that are not
possible with paper contracts, for example, companies could augment  the
policies  with FAQs, annotations, chat functionality for answering ques-
tions and other content to help consumers better understand their  poli-
cies.  Enabling  laws  have  been  approved  in  at least thirteen other
states.

LEGISLATIVE HISTORY:

New bill.

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

This  act  shall  take  effect  on the ninetieth day after it shall have
become law.

S5249 - Bill Text download pdf

                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5249

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                              May 11, 2015
                               ___________

Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
  printed to be committed to the Committee on Insurance

AN ACT to amend the insurance law, in relation to electronic delivery of
  insurance notices and posting insurance policies on the internet

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The insurance law is amended by adding a new section 3114
to read as follows:
  S 3114. ELECTRONIC NOTICES AND DOCUMENTS. (A) AS USED IN THIS SECTION,
THE FOLLOWING WORDS SHALL HAVE THE FOLLOWING MEANINGS:
  (1) "DELIVERED BY ELECTRONIC MEANS" INCLUDES:
  (A) DELIVERY TO AN ELECTRONIC  MAIL  ADDRESS  AT  WHICH  A  PARTY  HAS
CONSENTED TO RECEIVE NOTICES OR DOCUMENTS; OR
  (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 DELIVERY METHOD THAT HAS
BEEN CONSENTED TO BY THE PARTY.
  (2) "PARTY" MEANS ANY RECIPIENT OF ANY NOTICE OR DOCUMENT REQUIRED  AS
PART OF AN INSURANCE TRANSACTION, INCLUDING BUT NOT LIMITED TO AN APPLI-
CANT, AN INSURED, A POLICYHOLDER OR AN ANNUITY CONTRACT HOLDER.
  (B) SUBJECT TO THE REQUIREMENTS OF THIS SECTION, ANY NOTICE TO A PARTY
OR  ANY  OTHER  DOCUMENT  REQUIRED  UNDER APPLICABLE LAW IN AN INSURANCE
TRANSACTION OR THAT IS TO SERVE AS EVIDENCE OF 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.
  (C) DELIVERY OF A NOTICE OR DOCUMENT IN ACCORDANCE WITH  THIS  SECTION
SHALL  BE  CONSIDERED  EQUIVALENT  TO ANY DELIVERY METHOD REQUIRED UNDER
APPLICABLE LAW, INCLUDING DELIVERY BY  FIRST  CLASS  MAIL;  FIRST  CLASS

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10983-02-5

S. 5249                             2

MAIL,  POSTAGE  PREPAID; CERTIFIED MAIL; CERTIFICATE OF MAIL; OR CERTIF-
ICATE OF MAILING.
  (D)  A  NOTICE  OR DOCUMENT MAY BE DELIVERED BY ELECTRONIC MEANS BY AN
INSURER TO A PARTY UNDER THIS SECTION IF:
  (1) THE PARTY HAS AFFIRMATIVELY CONSENTED TO THAT METHOD  OF  DELIVERY
AND HAS NOT WITHDRAWN THE CONSENT;
  (2)  THE  PARTY,  BEFORE  GIVING CONSENT, IS PROVIDED WITH A CLEAR AND
CONSPICUOUS STATEMENT INFORMING THE PARTY OF:
  (A) THE RIGHT OF THE PARTY TO WITHDRAW CONSENT TO  HAVE  A  NOTICE  OR
DOCUMENT  DELIVERED BY ELECTRONIC MEANS, AT ANY TIME, AND ANY CONDITIONS
OR CONSEQUENCES IMPOSED IN THE EVENT CONSENT IS WITHDRAWN;
  (B) THE TYPES OF NOTICES AND DOCUMENTS TO WHICH  THE  PARTY'S  CONSENT
WOULD APPLY;
  (C)  THE  RIGHT  OF  A PARTY TO HAVE A NOTICE OR DOCUMENT DELIVERED IN
PAPER FORM; AND
  (D) THE PROCEDURES A PARTY MUST FOLLOW TO WITHDRAW CONSENT TO  HAVE  A
NOTICE  OR  DOCUMENT  DELIVERED  BY  ELECTRONIC  MEANS AND TO UPDATE THE
PARTY'S ELECTRONIC MAIL ADDRESS;
  (3) THE PARTY:
  (A) BEFORE GIVING CONSENT, IS PROVIDED WITH A STATEMENT OF  THE  HARD-
WARE  AND  SOFTWARE REQUIREMENTS FOR ACCESS TO AND RETENTION OF A NOTICE
OR DOCUMENT DELIVERED BY ELECTRONIC MEANS; AND
  (B) CONSENTS ELECTRONICALLY, OR CONFIRMS CONSENT ELECTRONICALLY, IN  A
MANNER  THAT  REASONABLY DEMONSTRATES THAT THE PARTY CAN ACCESS INFORMA-
TION IN THE ELECTRONIC FORM THAT WILL BE USED FOR NOTICES  OR  DOCUMENTS
DELIVERED  BY  ELECTRONIC MEANS AS TO WHICH THE PARTY HAS GIVEN CONSENT;
AND
  (4) AFTER CONSENT OF THE PARTY IS GIVEN, THE INSURER, IN THE  EVENT  A
CHANGE  IN  THE  HARDWARE  OR  SOFTWARE REQUIREMENTS NEEDED TO ACCESS OR
RETAIN A NOTICE OR DOCUMENT DELIVERED  BY  ELECTRONIC  MEANS  CREATES  A
MATERIAL  RISK  THAT  THE  PARTY  WILL NOT BE ABLE TO ACCESS OR RETAIN A
SUBSEQUENT NOTICE OR DOCUMENT TO WHICH THE CONSENT APPLIES:
  (A) PROVIDES THE PARTY WITH A STATEMENT THAT DESCRIBES:
  (I) THE REVISED HARDWARE AND SOFTWARE REQUIREMENTS FOR ACCESS  TO  AND
RETENTION OF A NOTICE OR DOCUMENT DELIVERED BY ELECTRONIC MEANS; AND
  (II) THE RIGHT OF THE PARTY TO WITHDRAW CONSENT WITHOUT THE IMPOSITION
OF  ANY  CONDITION  OR CONSEQUENCE THAT WAS NOT DISCLOSED AT THE TIME OF
INITIAL CONSENT; AND
  (B) COMPLIES WITH PARAGRAPH TWO OF THIS SUBSECTION.
  (E) THIS SECTION DOES NOT AFFECT REQUIREMENTS RELATED  TO  CONTENT  OR
TIMING OF ANY NOTICE OR DOCUMENT REQUIRED UNDER APPLICABLE LAW.
  (F)  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.
  (G)  THE  LEGAL  EFFECTIVENESS,  VALIDITY,  OR  ENFORCEABILITY  OF ANY
CONTRACT OR POLICY OF INSURANCE EXECUTED BY A PARTY MAY  NOT  BE  DENIED
SOLELY  BECAUSE OF THE FAILURE TO OBTAIN ELECTRONIC CONSENT OR CONFIRMA-
TION OF CONSENT OF THE PARTY IN  ACCORDANCE  WITH  SUBPARAGRAPH  (B)  OF
PARAGRAPH THREE OF SUBSECTION (D) OF THIS SECTION.
  (H)  (1)  A WITHDRAWAL OF CONSENT BY A PARTY DOES NOT AFFECT THE LEGAL
EFFECTIVENESS, VALIDITY, OR  ENFORCEABILITY  OF  A  NOTICE  OR  DOCUMENT
DELIVERED  BY  ELECTRONIC  MEANS  TO  THE PARTY BEFORE THE WITHDRAWAL OF
CONSENT IS EFFECTIVE.

S. 5249                             3

  (2) A WITHDRAWAL OF CONSENT BY A PARTY IS EFFECTIVE WITHIN  A  REASON-
ABLE PERIOD OF TIME AFTER RECEIPT OF THE WITHDRAWAL BY THE INSURER.
  (3)  FAILURE BY AN INSURER TO COMPLY WITH PARAGRAPH FOUR OF SUBSECTION
(D) AND SUBSECTION (J) OF THIS SECTION MAY BE TREATED, AT  THE  ELECTION
OF THE PARTY, AS A WITHDRAWAL OF CONSENT FOR PURPOSES OF THIS SECTION.
  (I)  THIS  SECTION DOES NOT APPLY TO A NOTICE OR DOCUMENT DELIVERED BY
AN INSURER IN AN ELECTRONIC FORM  BEFORE  THE  EFFECTIVE  DATE  OF  THIS
SECTION  TO  A  PARTY  WHO, BEFORE THAT DATE, HAS CONSENTED TO RECEIVE A
NOTICE OR DOCUMENT IN AN ELECTRONIC FORM OTHERWISE ALLOWED BY LAW.
  (J) IF THE CONSENT OF A PARTY TO RECEIVE CERTAIN NOTICES OR  DOCUMENTS
IN  AN  ELECTRONIC  FORM IS ON FILE WITH AN INSURER BEFORE THE EFFECTIVE
DATE OF THIS SECTION, AND PURSUANT TO THIS SECTION, AN  INSURER  INTENDS
TO DELIVER ADDITIONAL NOTICES OR DOCUMENTS TO SUCH PARTY IN AN ELECTRON-
IC  FORM,  THEN PRIOR TO DELIVERING SUCH ADDITIONAL NOTICES OR DOCUMENTS
ELECTRONICALLY, THE INSURER SHALL:
  (1) PROVIDE THE PARTY WITH A STATEMENT THAT DESCRIBES:
  (A) THE NOTICES OR DOCUMENTS THAT SHALL  BE  DELIVERED  BY  ELECTRONIC
MEANS  UNDER  THIS  SECTION THAT WERE NOT PREVIOUSLY DELIVERED ELECTRON-
ICALLY; AND
  (B) THE PARTY'S RIGHT TO WITHDRAW CONSENT TO HAVE NOTICES OR DOCUMENTS
DELIVERED BY ELECTRONIC MEANS, WITHOUT THE IMPOSITION OF  ANY  CONDITION
OR CONSEQUENCE THAT WAS NOT DISCLOSED AT THE TIME OF INITIAL CONSENT.
  (2) COMPLY WITH PARAGRAPH TWO OF SUBSECTION (D) OF THIS SECTION.
  (K)  AN INSURER SHALL DELIVER A NOTICE OR DOCUMENT BY ANY OTHER DELIV-
ERY METHOD PERMITTED BY LAW OTHER THAN ELECTRONIC MEANS IF:
  (1) THE INSURER ATTEMPTS TO DELIVER THE NOTICE OR  DOCUMENT  BY  ELEC-
TRONIC 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.
  (L) A PRODUCER SHALL NOT BE SUBJECT TO CIVIL LIABILITY FOR ANY HARM OR
INJURY THAT OCCURS AS A RESULT OF A  PARTY'S  ELECTION  TO  RECEIVE  ANY
NOTICE  OR  DOCUMENT  BY  ELECTRONIC MEANS OR BY AN INSURER'S FAILURE TO
DELIVER A NOTICE OR DOCUMENT BY ELECTRONIC MEANS.
  (M) THIS SECTION MAY NOT BE CONSTRUED TO MODIFY, LIMIT,  OR  SUPERSEDE
THE  PROVISIONS  OF  THE  FEDERAL  ELECTRONIC  SIGNATURES  IN GLOBAL AND
NATIONAL COMMERCE ACT, PUBLIC LAW 106-229, AS AMENDED.
  S 2. The insurance law is amended by adding a new section 3455 to read
as follows:
  S 3455. POSTING OF POLICIES ON THE INTERNET. (A)  NOTWITHSTANDING  ANY
OTHER  PROVISIONS OF SECTION THREE THOUSAND ONE HUNDRED FOURTEEN OF THIS
CHAPTER OR SECTION THREE HUNDRED NINE OF THE STATE TECHNOLOGY LAW, STAN-
DARD PROPERTY AND CASUALTY INSURANCE POLICIES AND ENDORSEMENTS  THAT  DO
NOT  CONTAIN  PERSONALLY  IDENTIFIABLE INFORMATION MAY BE MAILED, DELIV-
ERED, OR POSTED ON THE INSURER'S WEBSITE. IF THE INSURER ELECTS TO  POST
INSURANCE POLICIES AND ENDORSEMENTS ON ITS WEBSITE IN LIEU OF MAILING OR
DELIVERING THEM TO THE INSURED, IT MUST COMPLY WITH ALL OF THE FOLLOWING
CONDITIONS:
  (1)  THE POLICY AND ENDORSEMENTS MUST BE ACCESSIBLE TO THE INSURED AND
PRODUCER OF RECORD AND REMAIN THAT WAY FOR AS LONG AS THE POLICY  IS  IN
FORCE;
  (2)  AFTER  THE EXPIRATION OF THE POLICY, THE INSURER MUST ARCHIVE ITS
EXPIRED POLICIES AND ENDORSEMENTS FOR A PERIOD OF FIVE  YEARS  OR  OTHER
PERIOD REQUIRED BY LAW, AND MAKE THEM AVAILABLE UPON REQUEST;
  (3)  THE  POLICIES  AND  ENDORSEMENTS  MUST BE POSTED IN A MANNER THAT
ENABLES THE INSURED AND PRODUCER OF RECORD TO PRINT AND SAVE THE  POLICY

S. 5249                             4

AND  ENDORSEMENTS  USING PROGRAMS OR APPLICATIONS THAT ARE WIDELY AVAIL-
ABLE ON THE INTERNET AND FREE TO USE;
  (4) THE INSURER PROVIDES THE FOLLOWING INFORMATION IN, OR SIMULTANEOUS
WITH,  EACH  DECLARATIONS  PAGE  PROVIDED AT THE TIME OF ISSUANCE OF THE
INITIAL POLICY AND ANY RENEWALS OF THAT POLICY:
  (A) A DESCRIPTION OF THE EXACT POLICY AND ENDORSEMENT FORMS  PURCHASED
BY THE INSURED;
  (B)  A DESCRIPTION OF THE INSURED'S RIGHT TO RECEIVE, UPON REQUEST AND
WITHOUT CHARGE, A PAPER COPY OF THE POLICY AND ENDORSEMENTS BY MAIL; AND
  (C) THE INTERNET ADDRESS WHERE THEIR POLICY AND ENDORSEMENTS ARE POST-
ED;
  (5) THE INSURER, UPON REQUEST AND WITHOUT CHARGE, MAILS A  PAPER  COPY
OF THE POLICY AND ENDORSEMENTS TO THE INSURED; AND
  (6)  THE  INSURER  PROVIDES  NOTICE,  IN  THE  FORMAT PREFERRED BY THE
INSURED, OF ANY CHANGES TO THE  FORMS  OR  ENDORSEMENTS,  THE  INSURED'S
RIGHT  TO  OBTAIN, UPON REQUEST AND WITHOUT CHARGE, A PAPER COPY OF SUCH
FORMS OR ENDORSEMENTS, AND THE INTERNET  ADDRESS  WHERE  SUCH  FORMS  OR
ENDORSEMENTS ARE POSTED.
  (B)  NOTHING IN THIS SECTION SHALL AFFECT THE TIMING OR CONTENT OF ANY
DISCLOSURE OR OTHER DOCUMENT REQUIRED TO BE PROVIDED OR  MADE  AVAILABLE
TO ANY INSURED UNDER APPLICABLE LAW.
  S  3.  This  act shall take effect on the ninetieth day after it shall
have become a law.

Co-Sponsors

S5249A - Details

See Assembly Version of this Bill:: A8076
Law Section:: Insurance Law
Laws Affected:: Add §§3455 & 3456, Ins L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S2526, A1683
2019-2020: A7877
2021-2022: A651

S5249A - Summary

S5249A - Sponsor Memo

 BILL NUMBER:  S5249A

 TITLE OF BILL :

An act to amend the insurance law, in relation to electronic delivery
of property/casualty insurance notices and posting property/casualty
insurance policies on the internet

 PURPOSE :

To permit insurance notices and documents to be delivered
electronically with policyholder consent. To allow state-approved
insurance policies to be accessed on the internet instead of being
mailed unless specifically requested by the policyholder.

 SUMMARY OF PROVISIONS :

Section 1 adds new section 3455 to the Insurance Law. Section 3445
permits property/casualty insurers to deliver insurance notices and
documents electronically with the policyholder consent.

Section 2 adds new section 3456 to the Insurance Law. Section 3456
permits a property/casualty insurance company to elect to post
state-approved insurance policies and endorsements on the company's
website. Policyholders would be able to request a free paper copy of
the insurance policy.

Section 3 is the effective date.

 JUSTIFICATION :

Section 1: There has been an increasing trend in today's
technologically advanced society toward communicating electronically.
Insurance companies would like to provide the option to their
customers of receiving notices and documents electronically.
Currently, the Department of Financial Services has advised that the
use of electronic communications in insurance related transaction is
generally permitted, as long consumers have consented to doing
business electronically. However, there is a significant exception to
this allowance. Electronic delivery of notices is not allowed if a
statute or regulation specifically provides for a document or notice
to be "mailed." There are several statutes and regulations that still
reference delivery by "mail".

This bill would allow all insurance notices and document to be
delivered electronically as long as the consumer affirmatively
consents to receiving such notices and documents electronically. The
bill includes several safeguards designed to protect the consumer.
This includes requiring insurers to provide consumers with a clear
notice of their rights before consent is given. Consumers would have
the right to withdraw consent at any time. Before giving consent the
consumer must be provided with the hardware and software requirements
to receive documents electronically. Also, the consumer must consent
electronically in a manner that demonstrates that they can access the
information in the electronic form that will be used for electronic
document delivery. In the event the insurer makes hardware of software
change, they must notify the consumer. Any time an insurer has reason
to believe the electronic transmission has failed to reach the
consumer, they must deliver the notice or document by another delivery
method.

Section 2: Each year property and casualty insurance companies print
and then mail millions of policy contract booklets to their customers.
Often, these policies can exceed fifty pages in length.  Surveys
suggest consumers often toss their policies into the recycle bins
without ever reading them. While e-commerce laws have helped to
eliminate some of the waste, the process still has serious
limitations.

This legislation would allow the posting of standard approved
insurance policies and endorsements on the insurance company's
website, provided that the policy remains accessible for as long as
the policy is in force. Expired policies and endorsements would be
required to be available for five years, and upon request after that.

The policies and endorsements must be posted in a manner that enables
the policyholder to print and save the policy and endorsements using
programs or applications widely available on the internet and free to
use. The insurance company is required to provide with each
declaration page a description of the exact policy and endorsement
forms purchased by the insured, a description of the policyholder's
right to receive upon request and without charge, a paper copy of the
policy and endorsements by mail and the internet address where their
policy and endorsements are posted.

Personal identifying information would not be posted. This legislation
applies to insurance policy and endorsements as approved by the
Department of Financial Services.

The benefits to the insurance consumer are many. First, for the
prospective insurance buyer, he or she can look at the approved
policies and better compare the provisions of competitors. Second,
this legislation is environmentally friendly; it reduces unnecessary
and unwanted mailings. Third, there are no privacy concerns, as policy
contracts and endorsements do not contain any personal identifying
information. Fourth, electronic policy contracts create additional
features that are not possible with paper contracts, for example,
companies could augment the policies with FAQs, annotations, chat
functionality for answering questions and other content to help
consumers better understand their policies. Enabling laws have been
approved in at least thirteen other states.

 LEGISLATIVE HISTORY :

S.5249 (amended)

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
This act shall take effect on the ninetieth day after it shall have
become law.

S5249A - Bill Text download pdf

                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 5249--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                              May 11, 2015
                               ___________

Introduced  by  Sens.  SEWARD, LARKIN -- read twice and ordered printed,
  and when printed to be committed to  the  Committee  on  Insurance  --
  recommitted  to  the  Committee on Insurance in accordance with Senate
  Rule  6,  sec.  8  --  committee  discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the insurance law, in relation to electronic delivery of
  property/casualty  insurance  notices  and  posting  property/casualty
  insurance policies on the internet

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The insurance law is amended by adding a new section 3455
to read as follows:
  S 3445. ELECTRONIC NOTICES AND DOCUMENTS. (A) AS USED IN THIS SECTION,
THE FOLLOWING WORDS SHALL HAVE THE FOLLOWING MEANINGS:
  (1) "DELIVERED BY ELECTRONIC MEANS" INCLUDES:
  (A) DELIVERY TO AN ELECTRONIC  MAIL  ADDRESS  AT  WHICH  A  PARTY  HAS
CONSENTED TO RECEIVE NOTICES OR DOCUMENTS; OR
  (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 DELIVERY METHOD THAT HAS
BEEN CONSENTED TO BY THE PARTY.
  (2) "PARTY" MEANS ANY RECIPIENT OF ANY NOTICE OR DOCUMENT REQUIRED  AS
PART  OF  A  PROPERTY/CASUALTY  INSURANCE TRANSACTION, INCLUDING BUT NOT
LIMITED TO AN APPLICANT, AN INSURED, OR A POLICYHOLDER.
  (B) SUBJECT TO THE REQUIREMENTS OF THIS SECTION, ANY NOTICE TO A PARTY
OR  ANY  OTHER   DOCUMENT   REQUIRED   UNDER   APPLICABLE   LAW   IN   A
PROPERTY/CASUALTY  INSURANCE TRANSACTION OR THAT IS TO SERVE AS EVIDENCE
OF PROPERTY/CASUALTY INSURANCE COVERAGE MAY BE  DELIVERED,  STORED,  AND

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10983-03-5

S. 5249--A                          2

PRESENTED  BY  ELECTRONIC  MEANS SO LONG AS IT MEETS THE REQUIREMENTS OF
ARTICLE THREE OF THE STATE TECHNOLOGY LAW.
  (C)  DELIVERY  OF A NOTICE OR DOCUMENT IN ACCORDANCE WITH THIS SECTION
SHALL BE CONSIDERED EQUIVALENT TO ANY  DELIVERY  METHOD  REQUIRED  UNDER
APPLICABLE  LAW,  INCLUDING  DELIVERY  BY  FIRST CLASS MAIL; FIRST CLASS
MAIL, POSTAGE PREPAID; CERTIFIED MAIL; CERTIFICATE OF MAIL;  OR  CERTIF-
ICATE OF MAILING.
  (D)  A  NOTICE  OR DOCUMENT MAY BE DELIVERED BY ELECTRONIC MEANS BY AN
INSURER TO A PARTY UNDER THIS SECTION IF:
  (1) THE PARTY HAS AFFIRMATIVELY CONSENTED TO THAT METHOD  OF  DELIVERY
AND HAS NOT WITHDRAWN THE CONSENT;
  (2)  THE  PARTY,  BEFORE  GIVING CONSENT, IS PROVIDED WITH A CLEAR AND
CONSPICUOUS STATEMENT INFORMING THE PARTY OF:
  (A) THE RIGHT OF THE PARTY TO WITHDRAW CONSENT TO  HAVE  A  NOTICE  OR
DOCUMENT  DELIVERED BY ELECTRONIC MEANS, AT ANY TIME, AND ANY CONDITIONS
OR CONSEQUENCES IMPOSED IN THE EVENT CONSENT IS WITHDRAWN;
  (B) THE TYPES OF NOTICES AND DOCUMENTS TO WHICH  THE  PARTY'S  CONSENT
WOULD APPLY;
  (C)  THE  RIGHT  OF  A PARTY TO HAVE A NOTICE OR DOCUMENT DELIVERED IN
PAPER FORM; AND
  (D) THE PROCEDURES A PARTY MUST FOLLOW TO WITHDRAW CONSENT TO  HAVE  A
NOTICE  OR  DOCUMENT  DELIVERED  BY  ELECTRONIC  MEANS AND TO UPDATE THE
PARTY'S ELECTRONIC MAIL ADDRESS;
  (3) THE PARTY:
  (A) BEFORE GIVING CONSENT, IS PROVIDED WITH A STATEMENT OF  THE  HARD-
WARE  AND  SOFTWARE REQUIREMENTS FOR ACCESS TO AND RETENTION OF A NOTICE
OR DOCUMENT DELIVERED BY ELECTRONIC MEANS; AND
  (B) CONSENTS ELECTRONICALLY, OR CONFIRMS CONSENT ELECTRONICALLY, IN  A
MANNER  THAT  REASONABLY DEMONSTRATES THAT THE PARTY CAN ACCESS INFORMA-
TION IN THE ELECTRONIC FORM THAT WILL BE USED FOR NOTICES  OR  DOCUMENTS
DELIVERED  BY  ELECTRONIC MEANS AS TO WHICH THE PARTY HAS GIVEN CONSENT;
AND
  (4) AFTER CONSENT OF THE PARTY IS GIVEN, THE INSURER, IN THE  EVENT  A
CHANGE  IN  THE  HARDWARE  OR  SOFTWARE REQUIREMENTS NEEDED TO ACCESS OR
RETAIN A NOTICE OR DOCUMENT DELIVERED  BY  ELECTRONIC  MEANS  CREATES  A
MATERIAL  RISK  THAT  THE  PARTY  WILL NOT BE ABLE TO ACCESS OR RETAIN A
SUBSEQUENT NOTICE OR DOCUMENT TO WHICH THE CONSENT APPLIES:
  (A) PROVIDES THE PARTY WITH A STATEMENT THAT DESCRIBES:
  (I) THE REVISED HARDWARE AND SOFTWARE REQUIREMENTS FOR ACCESS  TO  AND
RETENTION OF A NOTICE OR DOCUMENT DELIVERED BY ELECTRONIC MEANS; AND
  (II) THE RIGHT OF THE PARTY TO WITHDRAW CONSENT WITHOUT THE IMPOSITION
OF  ANY  CONDITION  OR CONSEQUENCE THAT WAS NOT DISCLOSED AT THE TIME OF
INITIAL CONSENT; AND
  (B) COMPLIES WITH PARAGRAPH TWO OF THIS SUBSECTION.
  (E) THIS SECTION DOES NOT AFFECT REQUIREMENTS RELATED  TO  CONTENT  OR
TIMING OF ANY NOTICE OR DOCUMENT REQUIRED UNDER APPLICABLE LAW.
  (F)  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.
  (G)  THE  LEGAL  EFFECTIVENESS,  VALIDITY,  OR  ENFORCEABILITY  OF ANY
CONTRACT OR POLICY OF INSURANCE EXECUTED BY A PARTY MAY  NOT  BE  DENIED
SOLELY  BECAUSE OF THE FAILURE TO OBTAIN ELECTRONIC CONSENT OR CONFIRMA-
TION OF CONSENT OF THE PARTY IN  ACCORDANCE  WITH  SUBPARAGRAPH  (B)  OF
PARAGRAPH THREE OF SUBSECTION (D) OF THIS SECTION.

S. 5249--A                          3

  (H)  (1)  A WITHDRAWAL OF CONSENT BY A PARTY DOES NOT AFFECT THE LEGAL
EFFECTIVENESS, VALIDITY, OR  ENFORCEABILITY  OF  A  NOTICE  OR  DOCUMENT
DELIVERED  BY  ELECTRONIC  MEANS  TO  THE PARTY BEFORE THE WITHDRAWAL OF
CONSENT IS EFFECTIVE.
  (2)  A  WITHDRAWAL OF CONSENT BY A PARTY IS EFFECTIVE WITHIN A REASON-
ABLE PERIOD OF TIME AFTER RECEIPT OF THE WITHDRAWAL BY THE INSURER.
  (3) FAILURE BY AN INSURER TO COMPLY WITH PARAGRAPH FOUR OF  SUBSECTION
(D)  AND  SUBSECTION (J) OF THIS SECTION MAY BE TREATED, AT THE ELECTION
OF THE PARTY, AS A WITHDRAWAL OF CONSENT FOR PURPOSES OF THIS SECTION.
  (I) THIS SECTION DOES NOT APPLY TO A NOTICE OR DOCUMENT  DELIVERED  BY
AN  INSURER  IN  AN  ELECTRONIC  FORM  BEFORE THE EFFECTIVE DATE OF THIS
SECTION TO A PARTY WHO, BEFORE THAT DATE, HAS  CONSENTED  TO  RECEIVE  A
NOTICE OR DOCUMENT IN AN ELECTRONIC FORM OTHERWISE ALLOWED BY LAW.
  (J)  IF THE CONSENT OF A PARTY TO RECEIVE CERTAIN NOTICES OR DOCUMENTS
IN AN ELECTRONIC FORM IS ON FILE WITH AN INSURER  BEFORE  THE  EFFECTIVE
DATE  OF  THIS SECTION, AND PURSUANT TO THIS SECTION, AN INSURER INTENDS
TO DELIVER ADDITIONAL NOTICES OR DOCUMENTS TO SUCH PARTY IN AN ELECTRON-
IC FORM, THEN PRIOR TO DELIVERING SUCH ADDITIONAL NOTICES  OR  DOCUMENTS
ELECTRONICALLY, THE INSURER SHALL:
  (1) PROVIDE THE PARTY WITH A STATEMENT THAT DESCRIBES:
  (A)  THE  NOTICES  OR  DOCUMENTS THAT SHALL BE DELIVERED BY ELECTRONIC
MEANS UNDER THIS SECTION THAT WERE NOT  PREVIOUSLY  DELIVERED  ELECTRON-
ICALLY; AND
  (B) THE PARTY'S RIGHT TO WITHDRAW CONSENT TO HAVE NOTICES OR DOCUMENTS
DELIVERED  BY  ELECTRONIC MEANS, WITHOUT THE IMPOSITION OF ANY CONDITION
OR CONSEQUENCE THAT WAS NOT DISCLOSED AT THE TIME OF INITIAL CONSENT.
  (2) COMPLY WITH PARAGRAPH TWO OF SUBSECTION (D) OF THIS SECTION.
  (K) AN INSURER SHALL DELIVER A NOTICE OR DOCUMENT BY ANY OTHER  DELIV-
ERY METHOD PERMITTED BY LAW OTHER THAN ELECTRONIC MEANS IF:
  (1)  THE  INSURER  ATTEMPTS TO DELIVER THE NOTICE OR DOCUMENT BY ELEC-
TRONIC 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.
  (1)  THIS  SECTION MAY NOT BE CONSTRUED TO MODIFY, LIMIT, OR SUPERSEDE
THE PROVISIONS OF  THE  FEDERAL  ELECTRONIC  SIGNATURES  IN  GLOBAL  AND
NATIONAL COMMERCE ACT, PUBLIC LAW 106-229, AS AMENDED.
  S 2. The insurance law is amended by adding a new section 3456 to read
as follows:
  S  3456.  POSTING OF POLICIES ON THE INTERNET. (A) NOTWITHSTANDING ANY
OTHER PROVISIONS OF SECTION THREE THOUSAND FOUR  HUNDRED  FIFTY-FIVE  OF
THIS  CHAPTER OR SECTION THREE HUNDRED NINE OF THE STATE TECHNOLOGY LAW,
STANDARD PROPERTY AND CASUALTY INSURANCE POLICIES AND ENDORSEMENTS  THAT
DO NOT CONTAIN PERSONALLY IDENTIFIABLE INFORMATION MAY BE MAILED, DELIV-
ERED,  OR POSTED ON THE INSURER'S WEBSITE. IF THE INSURER ELECTS TO POST
INSURANCE POLICIES AND ENDORSEMENTS ON ITS WEBSITE IN LIEU OF MAILING OR
DELIVERING THEM TO THE INSURED, IT MUST COMPLY WITH ALL OF THE FOLLOWING
CONDITIONS:
  (1) THE POLICY AND ENDORSEMENTS MUST BE ACCESSIBLE TO THE INSURED  AND
PRODUCER  OF  RECORD AND REMAIN THAT WAY FOR AS LONG AS THE POLICY IS IN
FORCE;
  (2) AFTER THE EXPIRATION OF THE POLICY, THE INSURER MUST  ARCHIVE  ITS
EXPIRED  POLICIES  AND  ENDORSEMENTS FOR A PERIOD OF FIVE YEARS OR OTHER
PERIOD REQUIRED BY LAW, AND MAKE THEM AVAILABLE UPON REQUEST;
  (3) THE POLICIES AND ENDORSEMENTS MUST BE  POSTED  IN  A  MANNER  THAT
ENABLES  THE INSURED AND PRODUCER OF RECORD TO PRINT AND SAVE THE POLICY

S. 5249--A                          4

AND ENDORSEMENTS USING PROGRAMS OR APPLICATIONS THAT ARE  WIDELY  AVAIL-
ABLE ON THE INTERNET AND FREE TO USE;
  (4) THE INSURER PROVIDES THE FOLLOWING INFORMATION IN, OR SIMULTANEOUS
WITH,  EACH  DECLARATIONS  PAGE  PROVIDED AT THE TIME OF ISSUANCE OF THE
INITIAL POLICY AND ANY RENEWALS OF THAT POLICY:
  (A) A DESCRIPTION OF THE EXACT POLICY AND ENDORSEMENT FORMS  PURCHASED
BY THE INSURED;
  (B)  A DESCRIPTION OF THE INSURED'S RIGHT TO RECEIVE, UPON REQUEST AND
WITHOUT CHARGE, A PAPER COPY OF THE POLICY AND ENDORSEMENTS BY MAIL; AND
  (C) THE INTERNET ADDRESS WHERE THEIR POLICY AND ENDORSEMENTS ARE POST-
ED;
  (5) THE INSURER, UPON REQUEST AND WITHOUT CHARGE, MAILS A  PAPER  COPY
OF THE POLICY AND ENDORSEMENTS TO THE INSURED; AND
  (6)  THE  INSURER  PROVIDES  NOTICE,  IN  THE  FORMAT PREFERRED BY THE
INSURED, OF ANY CHANGES TO THE  FORMS  OR  ENDORSEMENTS,  THE  INSURED'S
RIGHT  TO  OBTAIN, UPON REQUEST AND WITHOUT CHARGE, A PAPER COPY OF SUCH
FORMS OR ENDORSEMENTS, AND THE INTERNET  ADDRESS  WHERE  SUCH  FORMS  OR
ENDORSEMENTS ARE POSTED.
  (B)  NOTHING IN THIS SECTION SHALL AFFECT THE TIMING OR CONTENT OF ANY
DISCLOSURE OR OTHER DOCUMENT REQUIRED TO BE PROVIDED OR  MADE  AVAILABLE
TO ANY INSURED UNDER APPLICABLE LAW.
  S  3.  This  act shall take effect on the ninetieth day after it shall
have become a law.

Co-Sponsors

S5249B (ACTIVE) - Details

See Assembly Version of this Bill:: A8076
Law Section:: Insurance Law
Laws Affected:: Add §§3455 & 3456, Ins L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S2526, A1683
2019-2020: A7877
2021-2022: A651

S5249B (ACTIVE) - Summary

S5249B (ACTIVE) - Sponsor Memo

 BILL NUMBER:  S5249B

 TITLE OF BILL :  An act to amend the insurance law, in relation to
electronic delivery of property/casualty insurance notices and posting
property/casualty insurance policies on the internet

 PURPOSE :

To permit insurance notices and documents to be delivered
electronically with policyholder consent. To allow state-approved
insurance policies to be accessed on the internet instead of being
mailed unless specifically requested by the policyholder.

 SUMMARY OF PROVISIONS :

Section 1 adds new section 3455 to the Insurance Law. Section 3455
permits property/casualty insurers to deliver insurance notices and
documents electronically with the policyholder consent.

Section 2 adds new section 3456 to the Insurance Law. Section 3456
permits a property/casualty insurance company to elect to post
state-approved insurance policies and endorsements on the company's
website. Policyholders would be able to request a free paper copy of
the insurance policy.

Section 3 is the effective date.

 JUSTIFICATION :

Section 1: There has been an increasing trend in today's
technologically advanced society toward communicating electronically.
Insurance companies would like to provide the option to their
customers of receiving notices and documents electronically.
Currently, the Department of Financial Services has advised that the
use of electronic communications in insurance related transaction is
generally permitted, as long consumers have consented to doing
business electronically. However, there is a significant exception to
this allowance. Electronic delivery of notices is not allowed if a
statute or regulation specifically provides for a document or notice
to be "mailed." There are several statutes and regulations that still
reference delivery by "mail".

This bill would allow all insurance notices and document to be
delivered electronically as long as the consumer affirmatively
consents to receiving such notices and documents electronically. The
bill includes several safeguards designed to protect the consumer.
This includes requiring insurers to provide consumers with a clear
notice of their rights before consent is given. Consumers would have
the right to withdraw consent at any time. Before giving consent the
consumer must be provided with the hardware and software requirements
to receive documents electronically. Also, the consumer must consent
electronically in a manner that demonstrates that they can access the
information in the electronic form that will be used for electronic
document delivery. In the event the insurer makes hardware of software
change, they must notify the consumer. Any time an insurer has reason
to believe the electronic transmission has failed to reach the
consumer, they must deliver the notice or document by another delivery
method.

Section 2: Each year property and casualty insurance companies print
and then mail millions of policy contract booklets to their customers.
Often, these policies can exceed fifty pages in length.  Surveys
suggest consumers often toss their policies into the recycle bins
without ever reading them. While e-commerce laws have helped to
eliminate some of the waste, the process still has serious
limitations.
This legislation would allow the posting of standard approved
insurance policies and endorsements on the insurance company's
website, provided that the policy remains accessible for as long as
the policy is in force. Expired policies and endorsements would be
required to be available for five years, and upon request after that.

The policies and endorsements must be posted in a manner that enables
the policyholder to print and save the policy and endorsements using
programs or applications widely available on the internet and free to
use. The insurance company is required to provide with each
declaration page a description of the exact policy and endorsement
forms purchased by the insured, a description of the policyholder's
right to receive upon request and without charge, a paper copy of the
policy and endorsements by mail and the internet address where their
policy and endorsements are posted.

Personal identifying information would not be posted. This legislation
applies to insurance policy and endorsements as approved by the
Department of Financial Services.

The benefits to the insurance consumer are many. First, for the
prospective insurance buyer, he or she can look at the approved
policies and better compare the provisions of competitors. Second,
this legislation is environmentally friendly; it reduces unnecessary
and unwanted mailings. Third, there are no privacy concerns, as policy
contracts and endorsements do not contain any personal identifying
information. Fourth, electronic policy contracts create additional
features that are not possible with paper contracts, for example,
companies could augment the policies with FAQs, annotations, chat
functionality for answering questions and other content to help
consumers better understand their policies. Enabling laws have been
approved in at least thirteen other states.

 LEGISLATIVE HISTORY :

S.5249 (amended) passed 2015

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
This act shall take effect on the ninetieth day after it shall have
become law.

S5249B (ACTIVE) - Bill Text download pdf

                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 5249--B

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                              May 11, 2015
                               ___________

Introduced  by  Sens.  SEWARD, LARKIN -- read twice and ordered printed,
  and when printed to be committed to  the  Committee  on  Insurance  --
  recommitted  to  the  Committee on Insurance in accordance with Senate
  Rule  6,  sec.  8  --  committee  discharged,  bill  amended,  ordered
  reprinted  as  amended  and recommitted to said committee -- committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN ACT to amend the insurance law, in relation to electronic delivery of
  property/casualty  insurance  notices  and  posting  property/casualty
  insurance policies on the internet

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The insurance law is amended by adding a new  section  3455
to read as follows:
  S 3455. ELECTRONIC NOTICES AND DOCUMENTS. (A) AS USED IN THIS SECTION,
THE FOLLOWING WORDS SHALL HAVE THE FOLLOWING MEANINGS:
  (1) "DELIVERED BY ELECTRONIC MEANS" INCLUDES:
  (A)  DELIVERY  TO  AN  ELECTRONIC  MAIL  ADDRESS  AT WHICH A PARTY HAS
CONSENTED TO RECEIVE NOTICES OR DOCUMENTS; OR
  (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 DELIVERY METHOD THAT HAS
BEEN CONSENTED TO BY THE PARTY.
  (2)  "PARTY" MEANS ANY RECIPIENT OF ANY NOTICE OR DOCUMENT REQUIRED AS
PART OF A PROPERTY/CASUALTY INSURANCE  TRANSACTION,  INCLUDING  BUT  NOT
LIMITED TO AN APPLICANT, AN INSURED, OR A POLICYHOLDER.
  (B) SUBJECT TO THE REQUIREMENTS OF THIS SECTION, ANY NOTICE TO A PARTY
OR   ANY   OTHER   DOCUMENT   REQUIRED   UNDER   APPLICABLE   LAW  IN  A
PROPERTY/CASUALTY INSURANCE TRANSACTION OR THAT IS TO SERVE AS  EVIDENCE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10983-06-6

S. 5249--B                          2

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.
  (C)  DELIVERY  OF A NOTICE OR DOCUMENT IN ACCORDANCE WITH THIS SECTION
SHALL BE CONSIDERED EQUIVALENT TO ANY  DELIVERY  METHOD  REQUIRED  UNDER
APPLICABLE  LAW,  INCLUDING  DELIVERY  BY  FIRST CLASS MAIL; FIRST CLASS
MAIL, POSTAGE PREPAID; CERTIFIED MAIL; CERTIFICATE OF MAIL;  OR  CERTIF-
ICATE OF MAILING.
  (D)  A  NOTICE  OR DOCUMENT MAY BE DELIVERED BY ELECTRONIC MEANS BY AN
INSURER TO A PARTY UNDER THIS SECTION IF:
  (1) THE PARTY HAS AFFIRMATIVELY CONSENTED TO THAT METHOD  OF  DELIVERY
AND HAS NOT WITHDRAWN THE CONSENT;
  (2)  THE  PARTY,  BEFORE  GIVING CONSENT, IS PROVIDED WITH A CLEAR AND
CONSPICUOUS STATEMENT INFORMING THE PARTY OF:
  (A) THE RIGHT OF THE PARTY TO WITHDRAW CONSENT TO  HAVE  A  NOTICE  OR
DOCUMENT  DELIVERED BY ELECTRONIC MEANS, AT ANY TIME, AND ANY CONDITIONS
OR CONSEQUENCES IMPOSED IN THE EVENT CONSENT IS WITHDRAWN;
  (B) THE TYPES OF NOTICES AND DOCUMENTS TO WHICH  THE  PARTY'S  CONSENT
WOULD APPLY;
  (C)  THE  RIGHT  OF  A PARTY TO HAVE A NOTICE OR DOCUMENT DELIVERED IN
PAPER FORM; AND
  (D) THE PROCEDURES A PARTY MUST FOLLOW TO WITHDRAW CONSENT TO  HAVE  A
NOTICE  OR  DOCUMENT  DELIVERED  BY  ELECTRONIC  MEANS AND TO UPDATE THE
PARTY'S ELECTRONIC MAIL ADDRESS;
  (3) THE PARTY:
  (A) BEFORE GIVING CONSENT, IS PROVIDED WITH A STATEMENT OF  THE  HARD-
WARE  AND  SOFTWARE REQUIREMENTS FOR ACCESS TO AND RETENTION OF A NOTICE
OR DOCUMENT DELIVERED BY ELECTRONIC MEANS; AND
  (B) CONSENTS ELECTRONICALLY, OR CONFIRMS CONSENT ELECTRONICALLY, IN  A
MANNER  THAT  REASONABLY DEMONSTRATES THAT THE PARTY CAN ACCESS INFORMA-
TION IN THE ELECTRONIC FORM THAT WILL BE USED FOR NOTICES  OR  DOCUMENTS
DELIVERED  BY  ELECTRONIC MEANS AS TO WHICH THE PARTY HAS GIVEN CONSENT;
AND
  (4) AFTER CONSENT OF THE PARTY IS GIVEN, THE INSURER, IN THE  EVENT  A
CHANGE  IN  THE  HARDWARE  OR  SOFTWARE REQUIREMENTS NEEDED TO ACCESS OR
RETAIN A NOTICE OR DOCUMENT DELIVERED  BY  ELECTRONIC  MEANS  CREATES  A
MATERIAL  RISK  THAT  THE  PARTY  WILL NOT BE ABLE TO ACCESS OR RETAIN A
SUBSEQUENT NOTICE OR DOCUMENT TO WHICH THE CONSENT APPLIES:
  (A) PROVIDES THE PARTY WITH A STATEMENT THAT DESCRIBES:
  (I) THE REVISED HARDWARE AND SOFTWARE REQUIREMENTS FOR ACCESS  TO  AND
RETENTION OF A NOTICE OR DOCUMENT DELIVERED BY ELECTRONIC MEANS; AND
  (II) THE RIGHT OF THE PARTY TO WITHDRAW CONSENT WITHOUT THE IMPOSITION
OF  ANY  CONDITION  OR CONSEQUENCE THAT WAS NOT DISCLOSED AT THE TIME OF
INITIAL CONSENT; AND
  (B) COMPLIES WITH PARAGRAPH TWO OF THIS SUBSECTION.
  (E) THIS SECTION DOES NOT AFFECT REQUIREMENTS RELATED  TO  CONTENT  OR
TIMING OF ANY NOTICE OR DOCUMENT REQUIRED UNDER APPLICABLE LAW.
  (F)  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.
  (G)  THE  LEGAL  EFFECTIVENESS,  VALIDITY,  OR  ENFORCEABILITY  OF ANY
CONTRACT OR POLICY OF INSURANCE EXECUTED BY A PARTY MAY  NOT  BE  DENIED
SOLELY  BECAUSE OF THE FAILURE TO OBTAIN ELECTRONIC CONSENT OR CONFIRMA-

S. 5249--B                          3

TION OF CONSENT OF THE PARTY IN  ACCORDANCE  WITH  SUBPARAGRAPH  (B)  OF
PARAGRAPH THREE OF SUBSECTION (D) OF THIS SECTION.
  (H)  (1)  A WITHDRAWAL OF CONSENT BY A PARTY DOES NOT AFFECT THE LEGAL
EFFECTIVENESS, VALIDITY, OR  ENFORCEABILITY  OF  A  NOTICE  OR  DOCUMENT
DELIVERED  BY  ELECTRONIC  MEANS  TO  THE PARTY BEFORE THE WITHDRAWAL OF
CONSENT IS EFFECTIVE.
  (2) A WITHDRAWAL OF CONSENT BY A PARTY IS EFFECTIVE WITHIN  A  REASON-
ABLE PERIOD OF TIME AFTER RECEIPT OF THE WITHDRAWAL BY THE INSURER.
  (3)  FAILURE BY AN INSURER TO COMPLY WITH PARAGRAPH FOUR OF SUBSECTION
(D) AND SUBSECTION (J) OF THIS SECTION MAY BE TREATED, AT  THE  ELECTION
OF THE PARTY, AS A WITHDRAWAL OF CONSENT FOR PURPOSES OF THIS SECTION.
  (I)  THIS  SECTION DOES NOT APPLY TO A NOTICE OR DOCUMENT DELIVERED BY
AN INSURER IN AN ELECTRONIC FORM  BEFORE  THE  EFFECTIVE  DATE  OF  THIS
SECTION  TO  A  PARTY  WHO, BEFORE THAT DATE, HAS CONSENTED TO RECEIVE A
NOTICE OR DOCUMENT IN AN ELECTRONIC FORM OTHERWISE ALLOWED BY LAW.
  (J) IF THE CONSENT OF A PARTY TO RECEIVE CERTAIN NOTICES OR  DOCUMENTS
IN  AN  ELECTRONIC  FORM IS ON FILE WITH AN INSURER BEFORE THE EFFECTIVE
DATE OF THIS SECTION, AND PURSUANT TO THIS SECTION, AN  INSURER  INTENDS
TO DELIVER ADDITIONAL NOTICES OR DOCUMENTS TO SUCH PARTY IN AN ELECTRON-
IC  FORM,  THEN PRIOR TO DELIVERING SUCH ADDITIONAL NOTICES OR DOCUMENTS
ELECTRONICALLY, THE INSURER SHALL:
  (1) PROVIDE THE PARTY WITH A STATEMENT THAT DESCRIBES:
  (A) THE NOTICES OR DOCUMENTS THAT SHALL  BE  DELIVERED  BY  ELECTRONIC
MEANS  UNDER  THIS  SECTION THAT WERE NOT PREVIOUSLY DELIVERED ELECTRON-
ICALLY; AND
  (B) THE PARTY'S RIGHT TO WITHDRAW CONSENT TO HAVE NOTICES OR DOCUMENTS
DELIVERED BY ELECTRONIC MEANS, WITHOUT THE IMPOSITION OF  ANY  CONDITION
OR CONSEQUENCE THAT WAS NOT DISCLOSED AT THE TIME OF INITIAL CONSENT.
  (2) COMPLY WITH PARAGRAPH TWO OF SUBSECTION (D) OF THIS SECTION.
  (K)  AN INSURER SHALL DELIVER A NOTICE OR DOCUMENT BY ANY OTHER DELIV-
ERY METHOD PERMITTED BY LAW OTHER THAN ELECTRONIC MEANS IF:
  (1) THE INSURER ATTEMPTS TO DELIVER THE NOTICE OR  DOCUMENT  BY  ELEC-
TRONIC 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.
  (L) THIS SECTION MAY NOT BE CONSTRUED TO MODIFY, LIMIT,  OR  SUPERSEDE
THE  PROVISIONS  OF  THE  FEDERAL  ELECTRONIC  SIGNATURES  IN GLOBAL AND
NATIONAL COMMERCE ACT, PUBLIC LAW 106-229, AS AMENDED.
  S 2. The insurance law is amended by adding a new section 3456 to read
as follows:
  S 3456. POSTING OF POLICIES ON THE INTERNET. (A)  NOTWITHSTANDING  ANY
OTHER  PROVISIONS  OF  SECTION THREE THOUSAND FOUR HUNDRED FIFTY-FIVE OF
THIS ARTICLE OR SECTION THREE HUNDRED NINE OF THE STATE TECHNOLOGY  LAW,
STANDARD  PROPERTY AND CASUALTY INSURANCE POLICIES AND ENDORSEMENTS THAT
DO NOT CONTAIN PERSONALLY IDENTIFIABLE INFORMATION MAY BE MAILED, DELIV-
ERED, OR POSTED ON THE INSURER'S WEBSITE. IF THE INSURER ELECTS TO  POST
INSURANCE POLICIES AND ENDORSEMENTS ON ITS WEBSITE IN LIEU OF MAILING OR
DELIVERING THEM TO THE INSURED, IT MUST COMPLY WITH ALL OF THE FOLLOWING
CONDITIONS:
  (1)  THE POLICY AND ENDORSEMENTS MUST BE ACCESSIBLE TO THE INSURED AND
PRODUCER OF RECORD AND REMAIN THAT WAY FOR AS LONG AS THE POLICY  IS  IN
FORCE;
  (2)  AFTER  THE EXPIRATION OF THE POLICY, THE INSURER MUST ARCHIVE ITS
EXPIRED POLICIES AND ENDORSEMENTS FOR A PERIOD OF FIVE  YEARS  OR  OTHER
PERIOD REQUIRED BY LAW, AND MAKE THEM AVAILABLE UPON REQUEST;

S. 5249--B                          4

  (3)  THE  POLICIES  AND  ENDORSEMENTS  MUST BE POSTED IN A MANNER THAT
ENABLES THE INSURED AND PRODUCER OF RECORD TO PRINT AND SAVE THE  POLICY
AND  ENDORSEMENTS  USING PROGRAMS OR APPLICATIONS THAT ARE WIDELY AVAIL-
ABLE ON THE INTERNET AND FREE TO USE;
  (4) THE INSURER PROVIDES THE FOLLOWING INFORMATION IN, OR SIMULTANEOUS
WITH,  EACH  DECLARATIONS  PAGE  PROVIDED AT THE TIME OF ISSUANCE OF THE
INITIAL POLICY AND ANY RENEWALS OF THAT POLICY:
  (A) A DESCRIPTION OF THE EXACT POLICY AND ENDORSEMENT FORMS  PURCHASED
BY THE INSURED;
  (B)  A DESCRIPTION OF THE INSURED'S RIGHT TO RECEIVE, UPON REQUEST AND
WITHOUT CHARGE, A PAPER COPY OF THE POLICY AND ENDORSEMENTS BY MAIL; AND
  (C) THE INTERNET ADDRESS WHERE THEIR POLICY AND ENDORSEMENTS ARE POST-
ED;
  (5) THE INSURER, UPON REQUEST AND WITHOUT CHARGE, MAILS A  PAPER  COPY
OF THE POLICY AND ENDORSEMENTS TO THE INSURED; AND
  (6)  THE  INSURER  PROVIDES  NOTICE,  IN  THE  FORMAT PREFERRED BY THE
INSURED, OF ANY CHANGES TO THE  FORMS  OR  ENDORSEMENTS,  THE  INSURED'S
RIGHT  TO  OBTAIN, UPON REQUEST AND WITHOUT CHARGE, A PAPER COPY OF SUCH
FORMS OR ENDORSEMENTS, AND THE INTERNET  ADDRESS  WHERE  SUCH  FORMS  OR
ENDORSEMENTS ARE POSTED.
  (B)  NOTHING IN THIS SECTION SHALL AFFECT THE TIMING OR CONTENT OF ANY
DISCLOSURE OR OTHER DOCUMENT REQUIRED TO BE PROVIDED OR  MADE  AVAILABLE
TO ANY INSURED UNDER APPLICABLE LAW.
  S  3.  This  act shall take effect on the ninetieth day after it shall
have become a law.

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The New York State Senate

senate Bill S5249B

Sponsored By

Archive: Last Bill Status - Vetoed by Governor

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Votes

May 4, 2016 - floor Vote

Floor Vote: May 4, 2016

Apr 11, 2016 - Insurance committee Vote

Insurance Committee Vote: Apr 11, 2016

Jun 15, 2015 - floor Vote

Floor Vote: Jun 15, 2015

May 18, 2015 - Insurance committee Vote

Committee Vote: May 18, 2015

Bill Amendments

Co-Sponsors

S5249 - Details

S5249 - Summary

S5249 - Sponsor Memo

S5249 - Bill Text download pdf

Co-Sponsors

S5249A - Details

S5249A - Summary

S5249A - Sponsor Memo

S5249A - Bill Text download pdf

Co-Sponsors

S5249B (ACTIVE) - Details

S5249B (ACTIVE) - Summary

S5249B (ACTIVE) - Sponsor Memo

S5249B (ACTIVE) - Bill Text download pdf

Comments

senate Bill S5249B

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Sponsored By

James L. Seward

Archive: Last Bill Status - Vetoed by Governor

Your Voice

Actions

Votes

May 4, 2016 - floor Vote

Floor Vote: May 4, 2016

Apr 11, 2016 - Insurance committee Vote

Insurance Committee Vote: Apr 11, 2016

Jun 15, 2015 - floor Vote

Floor Vote: Jun 15, 2015

May 18, 2015 - Insurance committee Vote

Committee Vote: May 18, 2015

Bill Amendments

Co-Sponsors

William J. Larkin, Jr.

S5249 - Details

S5249 - Summary

S5249 - Sponsor Memo

S5249 - Bill Text download pdf

Co-Sponsors

William J. Larkin, Jr.

S5249A - Details

S5249A - Summary

S5249A - Sponsor Memo

S5249A - Bill Text download pdf

Co-Sponsors

William J. Larkin, Jr.

S5249B (ACTIVE) - Details

S5249B (ACTIVE) - Summary

S5249B (ACTIVE) - Sponsor Memo

S5249B (ACTIVE) - Bill Text download pdf

Comments