Public Act 100-0495
 
HB3244 EnrolledLRB100 10325 SMS 20514 b


  
    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.
    (a) As used in this Section: 
    "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. For the 
purposes of this Section, "party" includes the producer of 
record. 
    (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 
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 delivery by 
first class mail or first class mail, postage prepaid. 
    (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    method of delivery and has not withdrawn the consent; 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        imposed in the event consent is withdrawn;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 
        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 
            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) 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. 
    (g) 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 
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. 
    (h) 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 100th 
General Assembly to a party who, before that date, has 
consented to receive notice or document in an electronic form 
otherwise allowed by law. 
    (i) 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 100th 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 
            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. 
    (j) 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. 
    (k) The producer of record 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 of record. 
    (l) 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. 
 
 
    Section 99. Effective date. This Act takes effect January 
1, 2018.