BILL NUMBER:  S6771

 TITLE OF BILL :  An act to amend the banking law, in relation to
allowing electronic delivery of notices by premium finance agencies
with insured consent

 PURPOSE :

To permit premium finance agency notices to be delivered
electronically with insured consent.

 SUMMARY OF PROVISIONS :

Section 1 adds new subdivision ten to Section 554 of the Banking Law
adding a definition of "mail" to permit delivery of notices by premium
finance agencies by electronic means (email and fax) to insureds with
their consent in addition to more traditional forms of delivery such
as U.S.P.S. 1st class mail, personal delivery and overnight delivery
service.

Section 2 is the effective date.

 JUSTIFICATION :

There has been an increasing trend in today's technologically advanced
society toward communicating electronically.  The Legislature has
              

advanced bills promoting this trend (see S.5249B/A8076B and S2367B of
2015/16). Premium Finance Agencies 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. This bill would codify this existing practice
and incorporate long standing federal consumer protections for
insureds contained in 15 U.S. Code § 7001(c) including, but not
limited to:

*affirmative consumer/insured consent that demonstrates the
consumer/insured can access the electronic information in the form
that will be used for delivery.

*prior to consent, the consumer/insured is provided with clear
information regarding (1) their right to have notices sent in
non-electronic form; (2) their right to withdraw such consent at any
time and directions on how to withdraw consent; (3) their right to
limit such consent to particular notices if so desired; and (4) the
hardware and software requirements necessary to receive documents
electronically.

*Hardware and software changes made after consent is received must be
reported to the consumer/insured at which time consent can be revoked.

 LEGISLATIVE HISTORY :

New bill.

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
Immediately.