Bill Text: IL HB4226 | 2015-2016 | 99th General Assembly | Introduced

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Bill Title: Amends the Illinois Insurance Code. Provides that notice to a party, and any other document that is required under applicable law in a premium finance agreement or that serves as evidence of a premium finance agreement, may be stored, presented, and delivered by electronic means. Provides that delivery of a notice or document by electronic means 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 certificate of mailing. Provides requirements to allow premium finance companies to deliver documents by electronic means. Provides that the legal effectiveness, validity, or enforceability of any premium finance agreement executed by a party may not be denied solely because the agreement was delivered by electronic means if the premium finance company has obtained the electronic consent or confirmation of consent of the party in accordance with the Act. Contains provisions to withdraw consent for electronic delivery of documents. Makes other changes. Effective January 1, 2016.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced - Dead) 2015-08-06 - Added Chief Co-Sponsor Rep. Ed Sullivan [HB4226 Detail]

Download: Illinois-2015-HB4226-Introduced.html

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99TH GENERAL ASSEMBLY State of Illinois 2015 and 2016 HB4226 Introduced , by Rep. Christine Winger SYNOPSIS AS INTRODUCED:
215 ILCS 5/513a13 new
Amends the Illinois Insurance Code. Provides that notice to a party, and any other document that is required under applicable law in a premium finance agreement or that serves as evidence of a premium finance agreement, may be stored, presented, and delivered by electronic means. Provides that delivery of a notice or document by electronic means 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; or registered mail. Provides requirements to allow premium finance companies to deliver documents by electronic means. Provides that the legal effectiveness, validity, or enforceability of any premium finance agreement executed by a party may not be denied solely because the agreement was delivered by electronic means if the premium finance company has obtained the electronic consent or confirmation of consent of the party in accordance with the Act. Contains provisions to withdraw consent for electronic delivery of documents. Makes other changes. Effective January 1, 2016.
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A BILL FOR
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AN ACT concerning insurance.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Insurance Code is amended by adding
Section 513a13 as follows:
(215 ILCS 5/513a13 new)
Sec. 513a13. Electronic delivery of notices and documents.
"Delivered by electronic means" includes:
(1) delivery to an electronic mail address at which a
party has consented to receive notices or documents; or
(2) posting on an electronic network or site accessible
via the Internet, 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.
"Party" means any recipient of any notice or document
required as part of a premium finance agreement including, but
not limited to, an applicant or contracting party.
(b) Subject to the requirements of this Section, any notice
to a party or any other document required under applicable law
in a premium finance agreement or that is to serve as evidence

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of a premium finance agreement may be delivered, stored, and
presented by electronic means so long as it meets the
requirements of the Electronic Commerce Security Act.
(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 certificate of mailing.
(d) A notice or document may be delivered by electronic
means by a premium finance company 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

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mail address;
(3) the party:
(A) before giving consent, is provided with a
statement of the hardware 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 information 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 premium
finance company, 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

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without the imposition of any condition or
consequence that was not disclosed at the time of
initial consent; and
(B) complies with paragraph (2) of this subsection
(d).
(e) Delivery of a notice or document in accordance with
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 Section or applicable law
requiring a notice or document to be provided to a party
expressly requires verification 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 premium finance agreement executed by a party may not be
denied solely because of the failure to obtain electronic
consent or confirmation of consent of the party in accordance
with subparagraph (B) of paragraph (3) of subsection (d) of
this Section.
(h) 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.
A withdrawal of consent by a party is effective within a
reasonable period of time after receipt of the withdrawal by

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the premium finance company.
Failure by a premium finance company to comply with
paragraph (4) of subsection (d) of this Section 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 a premium finance company in an electronic form
before the effective date of this amendatory Act of the 99th
General Assembly to a party who, before that date, has
consented to receive 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 a premium
finance company before the effective date of this amendatory
Act of the 99th General Assembly and, pursuant to this Section,
a premium finance company intends to deliver additional notices
or documents to the party in an electronic form, then prior to
delivering such additional notices or documents
electronically, the premium finance company 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 electronically;
and
(B) the party's right to withdraw consent to

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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; and
(2) comply with paragraph (2) of subsection (d) of
this Section.
(k) A premium finance company shall deliver a notice or
document by any other delivery method permitted by law other
than electronic means if:
(1) the premium finance company attempts to deliver the
notice or document by electronic means and has a reasonable
basis for believing that the notice or document has not
been received by the party; or
(2) the premium finance company becomes aware that the
electronic mail address provided by the party is no longer
valid.
(l) A premium finance company shall not be subject to civil
liability for any harm or injury that occurs as a result of a
party's election to receive any notice or document by
electronic means or by a premium finance company's failure to
deliver a notice or document by electronic means unless the
harm or injury is caused by the willful and wanton misconduct
of the producer.
(m) This Section shall not be construed to modify, limit,
or supersede the provisions of the federal Electronic
Signatures in Global and National Commerce Act, as amended.

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Section 99. Effective date. This Act takes effect January
1, 2016.