Bill Text: NY A07376 | 2023-2024 | General Assembly | Introduced


Bill Title: Allows the use of electronic notices and documents in premium finance transactions; sets guidelines for consent to the use of electronic notices and documents.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2023-10-25 - signed chap.581 [A07376 Detail]

Download: New_York-2023-A07376-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          7376

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                      May 18, 2023
                                       ___________

        Introduced by M. of A. WEPRIN -- read once and referred to the Committee
          on Banks

        AN  ACT  to  amend the banking law, in relation to electronic notices or
          documents in premium finance transactions

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section 1. The banking law is amended by adding a new section 578-a to
     2  read as follows:
     3    §  578-a.  Electronic  notes  and  documents.  1. For purposes of this
     4  section, the following words have the following meanings:
     5    (a) "Delivered by electronic means" includes:
     6    (i) delivery to an electronic  mail  address  at  which  a  party  has
     7  consented to receive notices or documents; or
     8    (ii)  posting  on  an  electronic  network  or site accessible via the
     9  internet, mobile application, computer, mobile device,  tablet,  or  any
    10  other  electronic  device, together with separate notice of such posting
    11  which shall be provided by electronic mail to the address at which  such
    12  party  has consented to receive notice or by any other electronic deliv-
    13  ery method that has been consented to by such party.
    14    (b) "Party" means any recipient of any notice or document required  as
    15  part of a premium finance transaction, including, but not limited to, an
    16  insured, insurance agent or broker, or insurer.
    17    2.  Subject to the requirements of this section, any notice to a party
    18  or any other document required under this article in a  premium  finance
    19  transaction  or that is to serve as evidence of a premium finance agree-
    20  ment may be delivered, stored, and presented by electronic means so long
    21  as it meets the requirements of article three of  the  state  technology
    22  law.  Where  this  chapter requires that written notice to an insured or
    23  any other document required under this article be mailed or delivered to
    24  the insured at his address as shown in such premium finance agreement or
    25  at his last known address as shown on the records of the premium finance

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11486-01-3

        A. 7376                             2

     1  agency, the notice may be delivered by electronic means to an electronic
     2  address not shown on such premium finance agreement.
     3    3.  Delivery of any notice or document in accordance with this section
     4  shall be considered equivalent to any mail or delivery  method  required
     5  under this article.
     6    4.  A  notice  or  document  may be delivered by electronic means by a
     7  premium finance agency to a party under this section if:
     8    (a) such party has affirmatively consented to such method of  delivery
     9  and has not withdrawn such consent;
    10    (b)  such  party,  before giving consent, is provided with a clear and
    11  conspicuous statement informing such party of:
    12    (i) the right of such party to withdraw, at any time, consent to  have
    13  such notice or document be delivered by electronic means, and any condi-
    14  tions or consequences imposed in the event consent is withdrawn;
    15    (ii)  the types of notices and documents to which such party's consent
    16  would apply;
    17    (iii) the right of such party to have such notice or  document  deliv-
    18  ered in paper form; and
    19    (iv) the procedures such party must follow to withdraw consent to have
    20  such notice or document delivered by electronic means and to update such
    21  party's electronic mail address;
    22    (c) such party:
    23    (i)  before  giving consent, is provided with a statement of the hard-
    24  ware and software requirements for  access  to  and  retention  of  such
    25  notice or document delivered by electronic means; and
    26    (ii) consents electronically, or confirms consent electronically, in a
    27  manner  that reasonably demonstrates that such party can access informa-
    28  tion in the electronic form that will be used for notices  or  documents
    29  delivered  by electronic means as to which such party has given consent;
    30  and
    31    (d) after consent of such party is given, such premium finance agency,
    32  in the event a change in the hardware or software requirements needed to
    33  access or retain such notice or document delivered by  electronic  means
    34  creates  a  material  risk that such party will not be able to access or
    35  retain a subsequent notice or document to which such consent applies:
    36    (i) provides such party with a statement that describes:
    37    (A) the revised hardware and software requirements for access  to  and
    38  retention of such notice or document delivered by electronic means; and
    39    (B) the right of such party to withdraw consent without the imposition
    40  on  any  condition  or consequence that was not disclosed at the time of
    41  initial consent; and
    42    (ii) complies with paragraph (b) of this subdivision.
    43    5. (a) Before a notice or document is delivered by electronic means, a
    44  premium finance agency shall obtain a party's consent  to  deliver  such
    45  notice  or document by electronic means. Such party's consent to receive
    46  one type of notice or document shall  not  be  construed  as  a  blanket
    47  consent  for  every type of notice and document to be delivered by elec-
    48  tronic means. Such party's consent shall only  apply  to  the  types  of
    49  notices  and  documents identified in the clean and conspicuous informa-
    50  tion statement provided to the consenting party, as required by subpara-
    51  graph (ii) of paragraph (b) of subdivision four of this section.
    52    (b) Any electronic mail being sent by a premium finance  agency  to  a
    53  party in connection with the delivery of a notice of intent to cancel or
    54  notice  of  cancellation  delivered by electronic means shall include in
    55  the subject line and body of the  communication  clear  and  conspicuous
    56  language alerting the receiving party as to the importance of the commu-

        A. 7376                             3

     1  nication  and  the type of notice being delivered by electronic means to
     2  such party.
     3    6.  This  section  does  not affect requirements related to content or
     4  timing of any notice or document required under this article.
     5    7. The legal effectiveness, validity, or enforceability of any premium
     6  finance agreement executed by a party may not be denied  solely  because
     7  of  the  failure to obtain electronic consent or confirmation of consent
     8  of the party pursuant to subparagraph (ii) of paragraph (c) of  subdivi-
     9  sion four of this section.
    10    8.  (a)  A  withdrawal of consent by a party does not affect the legal
    11  effectiveness, validity, or  enforceability  of  a  notice  or  document
    12  delivered  by  electronic  means to such party before such withdrawal of
    13  consent is effective.
    14    (b) A withdrawal of consent by a party is effective within  a  reason-
    15  able  period  of  time  after  receipt  of  such withdrawal by a premium
    16  finance agency.
    17    (c) Failure by a premium finance agency to comply with  paragraph  (d)
    18  of  subdivision four and subdivision ten of this section may be treated,
    19  at the election of the party, as a withdrawal of consent for purposes of
    20  this section.
    21    9. This section does not apply to a notice or document delivered by  a
    22  premium  finance  agency in an electronic form before the effective date
    23  of this section to a party who,  before  such  date,  has  consented  to
    24  receive  a notice or document in an electronic form otherwise allowed by
    25  law.
    26    10. If the consent of a party to receive certain notices or  documents
    27  in  an  electronic  form is on file with a premium finance agency before
    28  the effective date of this section, and pursuant to this  section,  such
    29  premium  finance  agency  intends to deliver additional notices or docu-
    30  ments to such party in an electronic form, then prior to delivering such
    31  additional notices or documents  electronically,  such  premium  finance
    32  agency shall:
    33    (a) provide such party with a statement that describes:
    34    (i)  such  notices  or documents that shall be delivered by electronic
    35  means under this section that were not  previously  delivered  electron-
    36  ically; and
    37    (ii)  such  party's right to withdraw consent to have notices or docu-
    38  ments delivered by electronic  means,  without  the  imposition  of  any
    39  condition  or  consequence that was not disclosed at the time of initial
    40  consent; and
    41    (b) comply with paragraph (b) of subdivision four of this section.
    42    11. A premium finance agency shall mail or deliver a notice  or  docu-
    43  ment  by  any other delivery method permitted by this article other than
    44  electronic means if such premium finance agency:
    45    (a) attempts to deliver by electronic means such  notice  or  document
    46  and  has  a  reasonable basis for believing that such notice or document
    47  has not been received by the party; or
    48    (b) becomes aware that the electronic mail address  provided  by  such
    49  party is no longer valid.
    50    12. This section shall not be construed to modify, limit, or supersede
    51  the  provisions  of  the  federal  Electronic  Signatures  in Global and
    52  National Commerce Act, Public Law 106-229, as amended.
    53    § 2. This act shall take effect immediately.
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