Bill Text: NY S02526 | 2017-2018 | General Assembly | Amended
Bill Title: 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.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2018-06-18 - SUBSTITUTED BY A1683B [S02526 Detail]
Download: New_York-2017-S02526-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 2526--B Cal. No. 1384 2017-2018 Regular Sessions IN SENATE 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: 1 Section 1. The insurance law is amended by adding a new section 3457 2 to read as follows: 3 § 3457. Electronic notices and documents. (a) As used in this section, 4 the following words shall have the following meanings: 5 (1) "Delivered by electronic means" includes: 6 (A) delivery to an electronic mail address at which a party has 7 consented to receive notices or documents; or 8 (B) posting on an electronic network or site accessible via the inter- 9 net, mobile application, computer, mobile device, tablet, or any other 10 electronic device, together with separate notice of the posting which 11 shall be provided by electronic mail to the address at which the party 12 has consented to receive notice or by any other delivery method that has 13 been consented to by the party. 14 (2) "Party" means any recipient of any notice or document required as 15 part of a property/casualty insurance transaction, including but not 16 limited to an applicant, an insured, or a policyholder. 17 (b) Subject to the requirements of this section, any notice to a party 18 or any other document required under applicable law in a 19 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. LBD02638-06-8S. 2526--B 2 1 of property/casualty insurance coverage may be delivered, stored, and 2 presented by electronic means so long as it meets the requirements of 3 article three of the state technology law. 4 (c) Delivery of a notice or document in accordance with this section 5 shall be considered equivalent to any delivery method required under 6 applicable law, including delivery by first class mail; first class 7 mail, postage prepaid; certified mail; certificate of mail; or certif- 8 icate of mailing. 9 (d) A notice or document may be delivered by electronic means by an 10 insurer to a party under this section if: 11 (1) the party has affirmatively consented to that method of delivery 12 and has not withdrawn the consent; 13 (2) the party, before giving consent, is provided with a clear and 14 conspicuous statement informing the party of: 15 (A) the right of the party to withdraw consent to have a notice or 16 document delivered by electronic means, at any time, and any conditions 17 or consequences imposed in the event consent is withdrawn; 18 (B) the types of notices and documents to which the party's consent 19 would apply; 20 (C) the right of a party to have a notice or document delivered in 21 paper form; and 22 (D) the procedures a party must follow to withdraw consent to have a 23 notice or document delivered by electronic means and to update the 24 party's electronic mail address; 25 (3) the party: 26 (A) before giving consent, is provided with a statement of the hard- 27 ware and software requirements for access to and retention of a notice 28 or document delivered by electronic means; and 29 (B) consents electronically, or confirms consent electronically, in a 30 manner that reasonably demonstrates that the party can access informa- 31 tion in the electronic form that will be used for notices or documents 32 delivered by electronic means as to which the party has given consent; 33 and 34 (4) after consent of the party is given, the insurer, in the event a 35 change in the hardware or software requirements needed to access or 36 retain a notice or document delivered by electronic means creates a 37 material risk that the party will not be able to access or retain a 38 subsequent notice or document to which the consent applies: 39 (A) provides the party with a statement that describes: 40 (i) the revised hardware and software requirements for access to and 41 retention of a notice or document delivered by electronic means; and 42 (ii) the right of the party to withdraw consent without the imposition 43 of any condition or consequence that was not disclosed at the time of 44 initial consent; and 45 (B) complies with paragraph two of this subsection. 46 (e) This section does not affect requirements related to content or 47 timing of any notice or document required under applicable law. 48 (f) If a provision of this chapter or applicable law requiring a 49 notice or document to be provided to a party expressly requires verifi- 50 cation or acknowledgment of receipt of the notice or document, the 51 notice or document may be delivered by electronic means only if the 52 method used provides for verification or acknowledgment of receipt. 53 (g) The legal effectiveness, validity, or enforceability of any 54 contract or policy of insurance executed by a party may not be denied 55 solely because of the failure to obtain electronic consent or confirma-S. 2526--B 3 1 tion of consent of the party in accordance with subparagraph (B) of 2 paragraph three of subsection (d) of this section. 3 (h) (1) A withdrawal of consent by a party does not affect the legal 4 effectiveness, validity, or enforceability of a notice or document 5 delivered by electronic means to the party before the withdrawal of 6 consent is effective. 7 (2) A withdrawal of consent by a party is effective within a reason- 8 able period of time after receipt of the withdrawal by the insurer. 9 (3) Failure by an insurer to comply with paragraph four of subsection 10 (d) and subsection (j) of this section may be treated, at the election 11 of the party, as a withdrawal of consent for purposes of this section. 12 (i) This section does not apply to a notice or document delivered by 13 an insurer in an electronic form before the effective date of this 14 section to a party who, before that date, has consented to receive a 15 notice or document in an electronic form otherwise allowed by law. 16 (j) If the consent of a party to receive certain notices or documents 17 in an electronic form is on file with an insurer before the effective 18 date of this section, and pursuant to this section, an insurer intends 19 to deliver additional notices or documents to such party in an electron- 20 ic form, then prior to delivering such additional notices or documents 21 electronically, the insurer shall: 22 (1) provide the party with a statement that describes: 23 (A) the notices or documents that shall be delivered by electronic 24 means under this section that were not previously delivered electron- 25 ically; and 26 (B) the party's right to withdraw consent to have notices or documents 27 delivered by electronic means, without the imposition of any condition 28 or consequence that was not disclosed at the time of initial consent. 29 (2) comply with paragraph two of subsection (d) of this section. 30 (k) An insurer shall deliver a notice or document by any other deliv- 31 ery method permitted by law other than electronic means if: 32 (1) the insurer attempts to deliver the notice or document by elec- 33 tronic means and has a reasonable basis for believing that the notice or 34 document has not been received by the party, or 35 (2) the insurer becomes aware that the electronic mail address 36 provided by the party is no longer valid. 37 (l) This section may not be construed to modify, limit, or supersede 38 the provisions of the federal Electronic Signatures in Global and 39 National Commerce Act, Public Law 106-229, as amended. 40 § 2. This act shall take effect on the ninetieth day after it shall 41 have become a law.
