Bill Text: NY A01683 | 2017-2018 | General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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 (Democrat 1-0)
Status: (Vetoed) 2018-12-07 - tabled [A01683 Detail]
Download: New_York-2017-A01683-Introduced.html
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 (Democrat 1-0)
Status: (Vetoed) 2018-12-07 - tabled [A01683 Detail]
Download: New_York-2017-A01683-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 1683 2017-2018 Regular Sessions IN ASSEMBLY January 12, 2017 ___________ Introduced by M. of A. HEVESI -- read once and referred to the Committee on Insurance AN ACT to amend the insurance law, in relation to electronic delivery of property/casualty insurance notices and posting property/casualty insurance policies on the internet 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 3455 2 to read as follows: 3 § 3455. 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 20 of property/casualty insurance coverage may be delivered, stored, and 21 presented by electronic means so long as it meets the requirements of 22 article three of the state technology law. 23 (c) Delivery of a notice or document in accordance with this section 24 shall be considered equivalent to any delivery method required under EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD02638-01-7A. 1683 2 1 applicable law, including delivery by first class mail; first class 2 mail, postage prepaid; certified mail; certificate of mail; or certif- 3 icate of mailing. 4 (d) A notice or document may be delivered by electronic means by an 5 insurer to a party under this section if: 6 (1) the party has affirmatively consented to that method of delivery 7 and has not withdrawn the consent; 8 (2) the party, before giving consent, is provided with a clear and 9 conspicuous statement informing the party of: 10 (A) the right of the party to withdraw consent to have a notice or 11 document delivered by electronic means, at any time, and any conditions 12 or consequences imposed in the event consent is withdrawn; 13 (B) the types of notices and documents to which the party's consent 14 would apply; 15 (C) the right of a party to have a notice or document delivered in 16 paper form; and 17 (D) the procedures a party must follow to withdraw consent to have a 18 notice or document delivered by electronic means and to update the 19 party's electronic mail address; 20 (3) the party: 21 (A) before giving consent, is provided with a statement of the hard- 22 ware and software requirements for access to and retention of a notice 23 or document delivered by electronic means; and 24 (B) consents electronically, or confirms consent electronically, in a 25 manner that reasonably demonstrates that the party can access informa- 26 tion in the electronic form that will be used for notices or documents 27 delivered by electronic means as to which the party has given consent; 28 and 29 (4) after consent of the party is given, the insurer, in the event a 30 change in the hardware or software requirements needed to access or 31 retain a notice or document delivered by electronic means creates a 32 material risk that the party will not be able to access or retain a 33 subsequent notice or document to which the consent applies: 34 (A) provides the party with a statement that describes: 35 (i) the revised hardware and software requirements for access to and 36 retention of a notice or document delivered by electronic means; and 37 (ii) the right of the party to withdraw consent without the imposition 38 of any condition or consequence that was not disclosed at the time of 39 initial consent; and 40 (B) complies with paragraph two of this subsection. 41 (e) This section does not affect requirements related to content or 42 timing of any notice or document required under applicable law. 43 (f) If a provision of this chapter or applicable law requiring a 44 notice or document to be provided to a party expressly requires verifi- 45 cation or acknowledgment of receipt of the notice or document, the 46 notice or document may be delivered by electronic means only if the 47 method used provides for verification or acknowledgment of receipt. 48 (g) The legal effectiveness, validity, or enforceability of any 49 contract or policy of insurance executed by a party may not be denied 50 solely because of the failure to obtain electronic consent or confirma- 51 tion of consent of the party in accordance with subparagraph (B) of 52 paragraph three of subsection (d) of this section. 53 (h) (1) A withdrawal of consent by a party does not affect the legal 54 effectiveness, validity, or enforceability of a notice or document 55 delivered by electronic means to the party before the withdrawal of 56 consent is effective.A. 1683 3 1 (2) A withdrawal of consent by a party is effective within a reason- 2 able period of time after receipt of the withdrawal by the insurer. 3 (3) Failure by an insurer to comply with paragraph four of subsection 4 (d) and subsection (j) of this section may be treated, at the election 5 of the party, as a withdrawal of consent for purposes of this section. 6 (i) This section does not apply to a notice or document delivered by 7 an insurer in an electronic form before the effective date of this 8 section to a party who, before that date, has consented to receive a 9 notice or document in an electronic form otherwise allowed by law. 10 (j) If the consent of a party to receive certain notices or documents 11 in an electronic form is on file with an insurer before the effective 12 date of this section, and pursuant to this section, an insurer intends 13 to deliver additional notices or documents to such party in an electron- 14 ic form, then prior to delivering such additional notices or documents 15 electronically, the insurer shall: 16 (1) provide the party with a statement that describes: 17 (A) the notices or documents that shall be delivered by electronic 18 means under this section that were not previously delivered electron- 19 ically; and 20 (B) the party's right to withdraw consent to have notices or documents 21 delivered by electronic means, without the imposition of any condition 22 or consequence that was not disclosed at the time of initial consent. 23 (2) comply with paragraph two of subsection (d) of this section. 24 (k) An insurer shall deliver a notice or document by any other deliv- 25 ery method permitted by law other than electronic means if: 26 (1) the insurer attempts to deliver the notice or document by elec- 27 tronic means and has a reasonable basis for believing that the notice or 28 document has not been received by the party, or 29 (2) the insurer becomes aware that the electronic mail address 30 provided by the party is no longer valid. 31 (l) This section may not be construed to modify, limit, or supersede 32 the provisions of the federal Electronic Signatures in Global and 33 National Commerce Act, Public Law 106-229, as amended. 34 § 2. The insurance law is amended by adding a new section 3456 to read 35 as follows: 36 § 3456. Posting of policies on the internet. (a) Notwithstanding any 37 other provisions of section three thousand four hundred fifty-five of 38 this article or section three hundred nine of the state technology law, 39 standard property and casualty insurance policies and endorsements that 40 do not contain personally identifiable information may be mailed, deliv- 41 ered, or posted on the insurer's website. If the insurer elects to post 42 insurance policies and endorsements on its website in lieu of mailing or 43 delivering them to the insured, it must comply with all of the following 44 conditions: 45 (1) The policy and endorsements must be accessible to the insured and 46 producer of record and remain that way for as long as the policy is in 47 force; 48 (2) After the expiration of the policy, the insurer must archive its 49 expired policies and endorsements for a period of five years or other 50 period required by law, and make them available upon request; 51 (3) The policies and endorsements must be posted in a manner that 52 enables the insured and producer of record to print and save the policy 53 and endorsements using programs or applications that are widely avail- 54 able on the internet and free to use;A. 1683 4 1 (4) The insurer provides the following information in, or simultaneous 2 with, each declarations page provided at the time of issuance of the 3 initial policy and any renewals of that policy: 4 (A) a description of the exact policy and endorsement forms purchased 5 by the insured; 6 (B) a description of the insured's right to receive, upon request and 7 without charge, a paper copy of the policy and endorsements by mail; and 8 (C) the internet address where their policy and endorsements are post- 9 ed; 10 (5) The insurer, upon request and without charge, mails a paper copy 11 of the policy and endorsements to the insured; and 12 (6) The insurer provides notice, in the format preferred by the 13 insured, of any changes to the forms or endorsements, the insured's 14 right to obtain, upon request and without charge, a paper copy of such 15 forms or endorsements, and the internet address where such forms or 16 endorsements are posted. 17 (b) Nothing in this section shall affect the timing or content of any 18 disclosure or other document required to be provided or made available 19 to any insured under applicable law. 20 § 3. This act shall take effect on the ninetieth day after it shall 21 have become a law.
