Bill Text: AZ SB1222 | 2014 | Fifty-first Legislature 2nd Regular | Engrossed
Bill Title: Insurance policies; electronic notices
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2014-04-23 - Chapter 188 [SB1222 Detail]
Download: Arizona-2014-SB1222-Engrossed.html
|
House Engrossed Senate Bill |
|
State of Arizona Senate Fifty-first Legislature Second Regular Session 2014
|
|
SENATE BILL 1222 |
|
|
|
|
AN ACT
Amending title 20, chapter 2, article 1, Arizona Revised Statutes, by adding section 20-239; Transferring and renumbering section 20-398.01, Arizona Revised Statutes, for placement in title 20, chapter 2, article 1, Arizona Revised Statutes, as section 20-240; amending section 20-240, Arizona Revised Statutes, as transferred and renumbered by this act; relating to the transaction of insurance business.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 20, chapter 2, article 1, Arizona Revised Statutes, is amended by adding section 20-239, to read:
20-239. Electronic communications and records; applicability; definitions
A. Any notice to a party or any other document that is required under this title in an insurance transaction or that is to serve as evidence of insurance coverage may be delivered, stored and presented by electronic means if it meets the requirements of title 44, chapter 26, article 1.
B. An insurer may deliver a notice or document by electronic means to a party pursuant to this section if the party electronically consents, or confirms consent electronically in advance, to that method of electronic delivery and has not withdrawn consent. An insurer shall obtain distinct advanced electronic consent from the named insured for delivery of any notice under section 20‑1632.
C. An oral communication or a recording of an oral communication does not qualify as consent for the purposes of this section.
D. Notwithstanding subsection A of this section, an insurer issuing a notice pursuant to section 20‑1632, subsection A, for a period of five years after the date of the notice, shall maintain in its files verification that the notice was sent by electronic means with a United States postal service electronic postmark or another electronic mail delivery service that provides electronic postmarks substantially similar to a United States postal service electronic postmark. The verification must contain sufficient information from which the department may determine that the notice was properly sent.
E. An insurer providing notice to an insured pursuant to section 20‑1632 by electronic means shall further deliver that notice to the named insured by United States postal service certified mail, certificate of mailing or first class mail using intelligent barcode or another similar tracking method used or approved by the United States postal service pursuant to section 20‑1632 if either of the following applies:
1. The notice being electronically delivered is rejected for delivery or returned to the insurer.
2. The insurer becomes aware that the electronic mail address provided by the party is no longer valid.
F. Delivery of a notice or document pursuant to this section is equivalent to any delivery method required under this title, including delivery by the United States postal service by first class mail, postage prepaid, certified mail, certificate of mailing or first class mail using intelligent barcode or another similar tracking method used or approved by the United States postal service.
G. After the party gives consent, if 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, the insurer must inform the party of:
1. The revised hardware and software requirements for access to and retention of a notice or document delivered by electronic means.
2. The party's right to withdraw consent without the imposition of any fee, condition or consequence.
H. This section does not affect the requirements related to content or timing of any notice or document required under this title.
I. If a provision of this title expressly requires verification or acknowledgment of receipt of a 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.
J. The legal effectiveness, validity or enforceability of any insurance contract or policy executed by a party may not be denied solely because the insurer failed to obtain electronic consent or confirmation of consent.
K. A party's withdrawal of consent:
1. 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. Is effective within seven days after the insurer receives the withdrawal.
L. If an insurer fails to comply with subsection G of this section, the party may treat that failure as a withdrawal of consent for the purposes of this section.
M. This section does not apply to a notice or document delivered by an insurer in an electronic format 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 format as otherwise provided by law.
N. If a party's consent to receive certain notices or documents in an electronic format is on file with an insurer before the effective date of this section and the insurer intends to deliver additional notices or documents to that party in an electronic format pursuant to this section, before delivering the additional notices or documents electronically the insurer must notify the party of both of the following:
1. The notices or documents that may be delivered by electronic means under this section that were not previously delivered electronically.
2. The party's right to withdraw consent to have notices or documents delivered by electronic means.
O. An insurer may not charge a fee to a party who does not consent to receive notices or documents by electronic means and who chooses to receive the notices or documents in hard copy.
P. This section applies only to property, casualty and life insurance policies that are subject to this title.
Q. This section does not modify, limit or supersede the electronic signatures in global and national commerce act (P.L. 106-229; 15 united states code section 7001).
R. For the purposes of this section:
1. "Delivered by electronic means" includes either:
(a) The delivery to an e-mail address at which a party has consented to receive notices or documents.
(b) The posting on an electronic network or site accessible via the internet, mobile application, computer, mobile device, tablet or other electronic device, together with a separate notice of the posting that is provided by electronic mail to the e-mail 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 a recipient of any notice or document as part of an insurance transaction, including an applicant, an insured or a policyholder.
Sec. 2. Section 20-398.01, Arizona Revised Statutes, is transferred and renumbered for placement in title 20, chapter 2, article 1, Arizona Revised Statutes, as section 20-240 and, as so renumbered, is amended to read:
20-240. Electronic posting of policies; definitions
A. Notwithstanding section 20-239, an insurer may post property and casualty insurance policies and endorsements that are subject to this article 4.1 of this chapter pursuant to section 20‑382 on the insurer's website instead of mailing or delivering the policies and endorsements to the insured, if all of the following conditions are satisfied:
1. The policies and endorsements posted by the insurer on its website do not contain personal information or privileged information.
2. The insurer makes accessible each policy and endorsement:
(a) On the insurer's website while each policy and endorsement remains in use.
(b) For a period of five years after the policy or endorsement is discontinued by the insurer.
3. The insurer posts its policies and endorsements on the insurer's website in a manner that enables the insured to print and save a copy of the policy and endorsements using programs and applications that are widely available on the internet and free of charge to use.
4. The insurer agrees to respond to requests from the insured in a timely manner and to provide notice in the manner that the insurer customarily communicates with an insured:
(a) At the time of issuance of the initial policy forms and any renewal forms of a method by which the insured may obtain, on request and without charge, a paper or electronic copy of the insured's policy or endorsement.
(b) Of any changes to the forms or endorsements, and of the insured's right to obtain, on request and without charge, a paper or electronic copy of the forms and endorsements.
(c) Of the insurer's specific website address and instructions on how to access the referenced policy and endorsement forms on the insurer's website.
5. On each declarations page delivered to an insured, the insurer clearly identifies the exact policy and endorsement forms purchased by the insured.
B. For the purposes of this section, "personal information" and "privileged information" have the same meanings prescribed in section 20‑2102.
