SB1773 98TH GENERAL ASSEMBLY

LRB098 08676 RPM 38797 b

98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB1773

Introduced 2/15/2013, by Sen. William R. Haine

SYNOPSIS AS INTRODUCED:

215 ILCS 5/143.33 new

Amends the Illinois Insurance Code. Sets forth a provision concerning electronic notices and documents. Provides that subject to certain provisions, any notice to a party or any other document required under applicable law in an insurance transaction or that is to serve as evidence of insurance coverage may be delivered, stored, and presented by electronic means. Provides that an insurer may deliver by electronic means standard property and casualty policy documents and endorsements that do not contain personally identifiable information without the affirmative consent of a party so long as the insurer complies with certain conditions. Provides that delivery of a notice or document in accordance with the provision concerning electronic notices and documents shall be considered equivalent to any delivery method required under applicable law. Sets forth provisions concerning consent, validity, verification, and applicability.

A BILL FOR

AN ACT concerning regulation.

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 143.33 as follows:

(215 ILCS 5/143.33 new)

Sec. 143.33. Electronic notices and documents.

(a) In this Section, the following words have the following meanings:

"Delivered by electronic means" means:

(A) delivery to an electronic mail address at which a party has consented to receive notices or documents;

(B) 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 to a party directed to the electronic mail address at which the party has consented to receive notice of the posting; or

(C) for purposes of subsection (c) of this Section only, posting on the insurer's public Internet website, together with separate notice to a party in the manner in which the insurer customarily communicates with the party.

"Party" means any recipient of any notice or document required as part of an insurance transaction, including, but not limited to, an applicant, an insured, a policyholder, or an annuity contract holder.

(b) Subject to subsections (c) and (e) of this Section, any notice to a party or any other document required under applicable law in an insurance transaction or that is to serve as evidence of insurance coverage may be delivered, stored, and presented by electronic means.

(c) An insurer may deliver by electronic means standard property and casualty policy documents and endorsements that do not contain personally identifiable information without the affirmative consent of a party so long as the insurer complies with the following conditions:

(1) the policy and endorsements must be easily accessible and remain that way for as long as the policy is in force;

(2) after the expiration of the policy, the insurer must archive its expired policies and endorsements for a period of 5 years and make them available upon request;

(3) the policies and endorsements must be posted in a manner that enables the insured to print and save the policy and endorsements using programs or applications that are widely available on the Internet and free to use;

(4) the insurer provides notice, in the manner it customarily communicates with the insured, at the time of issuance of the initial policy forms and any renewal forms, of a method by which insureds may obtain, upon request and without charge, a paper or electronic copy of their policy or endorsements;

(5) on each declarations page issued to an insured, the insurer must clearly identify the exact policy and endorsement forms purchased by the insured; and

(6) the insurer provides notice in the manner it customarily communicates with the insured of any changes to the forms or endorsements, and of the insured's right to obtain, upon request and without charge, a paper or electronic copy of the forms or endorsements.

(d) 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.

(e) Except as described in subsection (c) of this Section, a notice or document may be delivered by electronic means by an insurer to a party under this Section if the party has affirmatively consented to that method of delivery and has not withdrawn the consent.

(f) This Section does not affect requirements related to content or timing of any notice or document required under applicable law.

(g) If a provision of this Code 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.

(h) The legal effectiveness, validity, or enforceability of any contract or policy of insurance executed by a party may not be denied solely because of the failure to obtain electronic consent or confirmation of consent of the party.

(i) 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 insurer.

(j) This Section does not apply to a notice or document delivered by an insurer in an electronic form before the effective date of this amendatory Act of the 98th General Assembly to a party who, before that date, has consented to receive notice or document in an electronic form otherwise allowed by law.

(k) If the consent of a party to receive certain notices or documents in an electronic form is on file with an insurer before the effective date of this amendatory Act of the 98th General Assembly and an insurer intends to deliver additional notices or documents other than those described in subsection (c) of this Section to the party in an electronic form, then prior to delivering the additional notices or documents electronically, the insurer shall notify the party of the following:

(1) the notices or documents that may be delivered by electronic means under this Section that were not previously delivered electronically; and

(2) the party's right to withdraw consent to have notices or documents delivered by electronic means.

For purposes of subsection (c) of this Section only, if the consent of a party to receive certain notices or documents in an electronic form is on file with an insurer before the effective date of this amendatory Act of the 98th General Assembly, and pursuant to subsection (c) of this Section an insurer intends to deliver standard property and casualty insurance polices and endorsements that do not contain personally identifiable information to the party in an electronic form, the insurer has given sufficient notice under this Section if it meets the notice requirements of subsection (c) of this Section.

(l) Except as otherwise provided by law, if an oral communication or a recording of an oral communication from a party can be reliably stored and reproduced by an insurer, the oral communication or recording may qualify as a notice or document delivered by electronic means for purposes of this Section. If a provision of this Code or applicable law requires a signature or notice or document to be notarized, acknowledged, verified, or made under oath, the requirement is satisfied if the electronic signature of the person authorized to perform those acts, together with all other information required to be included by the provision, is attached to or logically associated with the signature, notice, or document.

(m) This Section may not be construed to modify, limit, or supersede the provisions of the federal Electronic Signatures in Global and National Commerce Act, Public Law 106-229, as amended.