Senate Bill S5061B

                                 BILL NUMBER:  S5061

 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 and conspicuous subject matter 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 (I) 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.

In order to provide final further protection, all "mail" sent to the
consumer/insured in the form of email or fax must conspicuously and
concisely notice the subject matter of the email or fax.

 LEGISLATIVE HISTORY :

Similar to S.6771 of 2016.

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
Immediately.

                                
 
BILL NUMBER: S5061A

SPONSOR: SEWARD
 
TITLE OF BILL:  An act to amend the banking law, in relation to allow-
ing 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 and conspicuous subject matter in addition to more tradi-
tional 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 gener-
ally permitted, as long consumers have consented to doing business elec-
tronically. This bill would codify this existing practice and incorpo-
rate 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 informa-
tion 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.

In order to provide final further protection, all "mail" sent to the
consumer/insured in the form of email or fax must conspicuously and
concisely notice the subject matter of the email or fax.

 
LEGISLATIVE HISTORY:

Similar to 5.6771 of 2016.
 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
Immediately.