STATE OF NEW YORK
________________________________________________________________________
1683--B
R. R. 35
2017-2018 Regular Sessions
IN ASSEMBLY
January 12, 2017
___________
Introduced by M. of A. HEVESI -- read once and referred to the Committee
on Insurance -- recommitted to the Committee on Insurance in accord-
ance with Assembly Rule 3, sec. 2 -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee -- reported and referred to the Committee on Codes -- reported and
referred to the Committee on Rules -- ordered to a third reading,
passed by Assembly and delivered to the Senate, recalled from the
Senate, vote reconsidered, bill amended, ordered reprinted, retaining
its place on the special 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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02638-07-8
A. 1683--B 2
1 property/casualty insurance transaction or that is to serve as evidence
2 of property/casualty insurance coverage may be delivered, stored, and
3 presented by electronic means so long as it meets the requirements of
4 article three of the state technology law.
5 (c) Delivery of a notice or document in accordance with this section
6 shall be considered equivalent to any delivery method required under
7 applicable law, including delivery by first class mail; first class
8 mail, postage prepaid; certified mail; certificate of mail; or certif-
9 icate of mailing.
10 (d) A notice or document may be delivered by electronic means by an
11 insurer to a party under this section if:
12 (1) the party has affirmatively consented to that method of delivery
13 and has not withdrawn the consent;
14 (2) the party, before giving consent, is provided with a clear and
15 conspicuous statement informing the party of:
16 (A) the right of the party to withdraw consent to have a notice or
17 document delivered by electronic means, at any time, and any conditions
18 or consequences imposed in the event consent is withdrawn;
19 (B) the types of notices and documents to which the party's consent
20 would apply;
21 (C) the right of a party to have a notice or document delivered in
22 paper form; and
23 (D) the procedures a party must follow to withdraw consent to have a
24 notice or document delivered by electronic means and to update the
25 party's electronic mail address;
26 (3) the party:
27 (A) before giving consent, is provided with a statement of the hard-
28 ware and software requirements for access to and retention of a notice
29 or document delivered by electronic means; and
30 (B) consents electronically, or confirms consent electronically, in a
31 manner that reasonably demonstrates that the party can access informa-
32 tion in the electronic form that will be used for notices or documents
33 delivered by electronic means as to which the party has given consent;
34 and
35 (4) after consent of the party is given, the insurer, in the event a
36 change in the hardware or software requirements needed to access or
37 retain a notice or document delivered by electronic means creates a
38 material risk that the party will not be able to access or retain a
39 subsequent notice or document to which the consent applies:
40 (A) provides the party with a statement that describes:
41 (i) the revised hardware and software requirements for access to and
42 retention of a notice or document delivered by electronic means; and
43 (ii) the right of the party to withdraw consent without the imposition
44 of any condition or consequence that was not disclosed at the time of
45 initial consent; and
46 (B) complies with paragraph two of this subsection.
47 (e) This section does not affect requirements related to content or
48 timing of any notice or document required under applicable law.
49 (f) If a provision of this chapter or applicable law requiring a
50 notice or document to be provided to a party expressly requires verifi-
51 cation or acknowledgment of receipt of the notice or document, the
52 notice or document may be delivered by electronic means only if the
53 method used provides for verification or acknowledgment of receipt.
54 (g) The legal effectiveness, validity, or enforceability of any
55 contract or policy of insurance executed by a party may not be denied
56 solely because of the failure to obtain electronic consent or confirma-
A. 1683--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.