NY State Senate Bill 2017-S2526B

Archive: Last Bill Status Via A1683 - Vetoed by Governor

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Vetoed By Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Dec 07, 2018	tabled vetoed memo.271
Nov 26, 2018	delivered to governor
Jun 18, 2018	returned to assembly passed senate 3rd reading cal.1384 substituted for s2526b
Jun 18, 2018	substituted by a1683b
Jun 11, 2018	amended on third reading 2526b
Jun 04, 2018	advanced to third reading
May 31, 2018	2nd report cal.
May 30, 2018	1st report cal.1384
May 21, 2018	print number 2526a
May 21, 2018	amend (t) and recommit to insurance
Jan 03, 2018	referred to insurance
Jan 13, 2017	referred to insurance

Votes

- Jun 18, 2018 - Floor Vote
  A1683
  
  62
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 18, 2018
      
      aye (62)
      
      Addabbo Jr.
      
      Akshar
      
      Alcantara
      
      Amedore
      
      Avella
      
      Bailey
      
      Benjamin
      
      Bonacic
      
      Boyle
      
      Breslin
      
      Brooks
      
      Carlucci
      
      Comrie
      
      DeFrancisco
      
      Dilan
      
      Felder
      
      Flanagan
      
      Funke
      
      Gallivan
      
      Gianaris
      
      Golden
      
      Griffo
      
      Hamilton
      
      Hannon
      
      Helming
      
      Hoylman-Sigal
      
      Jacobs
      
      Kaminsky
      
      Kavanagh
      
      Kennedy
      
      Klein
      
      Krueger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Little
      
      Marcellino
      
      Marchione
      
      Mayer
      
      Montgomery
      
      Murphy
      
      O'Mara
      
      Ortt
      
      Parker
      
      Peralta
      
      Persaud
      
      Phillips
      
      Ranzenhofer
      
      Ritchie
      
      Rivera
      
      Robach
      
      Sanders Jr.
      
      Savino
      
      Sepúlveda
      
      Serino
      
      Serrano
      
      Seward
      
      Stavisky
      
      Stewart-Cousins
      
      Tedisco
      
      Valesky
      
      Young
      
      excused (1)
      
      Croci
  May 30, 2018 - Insurance Committee Vote
  S2526B
  
  19
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Insurance Committee Vote: May 30, 2018
      
      aye (19)
      
      Akshar
      
      Benjamin
      
      Breslin
      
      Brooks
      
      Golden
      
      Hamilton
      
      Jacobs
      
      Kennedy
      
      LaValle
      
      Lanza
      
      Larkin
      
      Mayer
      
      Murphy
      
      O'Mara
      
      Parker
      
      Rivera
      
      Savino
      
      Serino
      
      Seward

Bill Amendments

Original

B (Active)

co-Sponsors

2017-S2526 - Details

See Assembly Version of this Bill:: A1683
Law Section:: Insurance Law
Laws Affected:: Add §3457, Ins L
Versions Introduced in Other Legislative Sessions:: 2015-2016: S5249, A8076
2019-2020: A7877
2021-2022: A651

2017-S2526 - 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.

2017-S2526 - Sponsor Memo

                                 BILL NUMBER:  S2526

 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-B of 2016, passed both houses;
S.5249 of 2015, passed senate.

 FISCAL IMPLICATIONS :

None.

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

2017-S2526 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2526
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 13, 2017
                                ___________
 
 Introduced  by  Sens.  SEWARD, LARKIN -- 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
   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:
   § 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
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD02638-01-7

 S. 2526                             2
 
 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.
   (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. 2526                             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) 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.
   § 2. The insurance law is amended by adding a new section 3456 to read
 as follows:
   § 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;
   (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;

 S. 2526                             4
 
   (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.
   § 3. This act shall take effect on the ninetieth day  after  it  shall
 have become a law.

co-Sponsors

2017-S2526A - Details

See Assembly Version of this Bill:: A1683
Law Section:: Insurance Law
Laws Affected:: Add §3457, Ins L
Versions Introduced in Other Legislative Sessions:: 2015-2016: S5249, A8076
2019-2020: A7877
2021-2022: A651

2017-S2526A - Summary

2017-S2526A - Sponsor Memo

                                
 
BILL NUMBER: S2526A          REVISED MEMO 05/22/2018

SPONSOR: SEWARD
 
TITLE OF BILL:  An act to amend the insurance law, in relation to
electronic delivery of property/casualty insurance notices

 
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 establishes the effective date.

 
JUSTIFICATION:

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 insur-

ance related transaction is generally permitted, as long consumers have
consented to doing business electronically. However, there is a signif-
icant 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. The bill also adds a requirement that elec-
tronic notices provided on automobile insurance policies pursuant to
section 3425(c)(1) shall require verification or acknowledgment of
receipt of the notice.

 
LEGISLATIVE HISTORY:

S.5249-B of 2016, passed both houses;
S.5249 of 2015, passed senate.

 
FISCAL IMPLICATIONS:

None.

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

2017-S2526A - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2526--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 13, 2017
                                ___________
 
 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
 
   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  3457
 to read as follows:
   § 3457. 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
 PRESENTED BY ELECTRONIC MEANS SO LONG AS IT MEETS  THE  REQUIREMENTS  OF
 ARTICLE THREE OF THE STATE TECHNOLOGY LAW.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD02638-04-8

 S. 2526--A                          2
 
   (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)  NOTWITHSTANDING ANY PROVISION OF THIS SECTION, ELECTRONIC NOTICES
 PROVIDED PURSUANT TO PARAGRAPH ONE OF SUBSECTION (C)  OF  SECTION  THREE
 THOUSAND  FOUR HUNDRED TWENTY-FIVE OF THIS ARTICLE SHALL REQUIRE VERIFI-
 CATION OR ACKNOWLEDGEMENT OF RECEIPT OF THE NOTICE.
   (H) 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. 2526--A                          3
 
 TION  OF  CONSENT  OF  THE  PARTY IN ACCORDANCE WITH SUBPARAGRAPH (B) OF
 PARAGRAPH THREE OF SUBSECTION (D) OF THIS SECTION.
   (I)  (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 (K) OF THIS SECTION MAY BE TREATED, AT  THE  ELECTION
 OF THE PARTY, AS A WITHDRAWAL OF CONSENT FOR PURPOSES OF THIS SECTION.
   (J)  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.
   (K) 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.
   (L)  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.
   (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.
   § 2. This act shall take effect on the ninetieth day  after  it  shall
 have become a law.

co-Sponsors

2017-S2526B (ACTIVE) - Details

See Assembly Version of this Bill:: A1683
Law Section:: Insurance Law
Laws Affected:: Add §3457, Ins L
Versions Introduced in Other Legislative Sessions:: 2015-2016: S5249, A8076
2019-2020: A7877
2021-2022: A651

2017-S2526B (ACTIVE) - Summary

2017-S2526B (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S2526B

SPONSOR: SEWARD
 
TITLE OF BILL:  An act to amend the insurance law, in relation to
electronic delivery of property/casualty insurance notices

 
PURPOSE

To permit insurance notices and documents to be delivered electronically
with policyholder consent.

 
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 establishes the effective date.

 
JUSTIFICATION:

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 insur-
ance related transaction is generally permitted, as long consumers have
consented to doing business electronically. However, there is a signif-
icant 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.

 
LEGISLATIVE HISTORY:

S.5249-B of 2016, passed both houses;
S.5249 of 2015, passed senate.
 
FISCAL IMPLICATIONS:

None.

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

2017-S2526B (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2526--B
     Cal. No. 1384
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 13, 2017
                                ___________
 
 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 -- reported
   favorably from said committee, ordered to  first  and  second  report,
   ordered  to  a third reading, amended and ordered reprinted, retaining
   its place in the order of third reading
 
 AN ACT to amend the insurance law, in relation to electronic delivery of
   property/casualty insurance notices
 
   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 3457
 to read as follows:
   § 3457. 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.
                                                            LBD02638-06-8

 S. 2526--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. 2526--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.
   § 2. This act shall take effect on the ninetieth day  after  it  shall
 have become a law.

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Senate Bill S2526B

Sponsored By

Archive: Last Bill Status Via A1683 - Vetoed by Governor

Jun 18, 2018 - Floor Vote

Floor Vote: Jun 18, 2018

May 30, 2018 - Insurance Committee Vote

Insurance Committee Vote: May 30, 2018

Bill Amendments

co-Sponsors

2017-S2526 - Details

2017-S2526 - Summary

2017-S2526 - Sponsor Memo

2017-S2526 - Bill Text download pdf

co-Sponsors

2017-S2526A - Details

2017-S2526A - Summary

2017-S2526A - Sponsor Memo

2017-S2526A - Bill Text download pdf

co-Sponsors

2017-S2526B (ACTIVE) - Details

2017-S2526B (ACTIVE) - Summary

2017-S2526B (ACTIVE) - Sponsor Memo

2017-S2526B (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S2526B

Share this bill

Sponsored By

James L. Seward

Archive: Last Bill Status Via A1683 - Vetoed by Governor

Bill Amendments

co-Sponsors

William Larkin

2017-S2526 - Details

2017-S2526 - Summary

2017-S2526 - Sponsor Memo

2017-S2526 - Bill Text download pdf

co-Sponsors

William Larkin

2017-S2526A - Details

2017-S2526A - Summary

2017-S2526A - Sponsor Memo

2017-S2526A - Bill Text download pdf

co-Sponsors

William Larkin

2017-S2526B (ACTIVE) - Details

2017-S2526B (ACTIVE) - Summary

2017-S2526B (ACTIVE) - Sponsor Memo

2017-S2526B (ACTIVE) - Bill Text download pdf

Comments