Full Text of SB1680 99th General Assembly
SB1680enr 99TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning insurance.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Insurance Code is amended by adding | 5 | | Section 143.34 as follows: | 6 | | (215 ILCS 5/143.34 new) | 7 | | Sec. 143.34. Electronic notices and documents. | 8 | | (a) As used in this Section: | 9 | | "Delivered by electronic means" includes: | 10 | | (1) delivery to an electronic mail address at which a | 11 | | party has consented to receive notices or documents; or | 12 | | (2) posting on an electronic network or site accessible | 13 | | via the Internet, mobile application, computer, mobile | 14 | | device, tablet, or any other electronic device, together | 15 | | with separate notice of the posting, which shall be | 16 | | provided by electronic mail to the address at which the | 17 | | party has consented to receive notice or by any other | 18 | | delivery method that has been consented to by the party. | 19 | | "Party" means any recipient of any notice or document | 20 | | required as part of an insurance transaction, including, but | 21 | | not limited to, an applicant, an insured, a policyholder, or an | 22 | | annuity contract holder. | 23 | | (b) Subject to the requirements of this Section, any notice |
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| 1 | | to a party or any other document required under applicable law | 2 | | in an insurance transaction or that is to serve as evidence of | 3 | | insurance coverage may be delivered, stored, and presented by | 4 | | electronic means so long as it meets the requirements of the | 5 | | Electronic Commerce Security Act. | 6 | | (c) Delivery of a notice or document in accordance with | 7 | | this Section shall be considered equivalent to any delivery | 8 | | method required under applicable law, including delivery by | 9 | | first class mail; first class mail, postage prepaid; certified | 10 | | mail; certificate of mail; or certificate of mailing. | 11 | | (d) A notice or document may be delivered by electronic | 12 | | means by an insurer to a party under this Section if: | 13 | | (1) the party has affirmatively consented to that | 14 | | method of delivery and has not withdrawn the consent; | 15 | | (2) the party, before giving consent, is provided with | 16 | | a clear and conspicuous statement informing the party of: | 17 | | (A) the right of the party to withdraw consent to | 18 | | have a notice or document delivered by electronic | 19 | | means, at any time, and any conditions or consequences | 20 | | imposed in the event consent is withdrawn; | 21 | | (B) the types of notices and documents to which the | 22 | | party's consent would apply; | 23 | | (C) the right of a party to have a notice or | 24 | | document delivered in paper form; and | 25 | | (D) the procedures a party must follow to withdraw | 26 | | consent to have a notice or document delivered by |
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| 1 | | electronic means and to update the party's electronic | 2 | | mail address; | 3 | | (3) the party: | 4 | | (A) before giving consent, is provided with a | 5 | | statement of the hardware and software requirements | 6 | | for access to, and retention of, a notice or document | 7 | | delivered by electronic means; and | 8 | | (B) consents electronically, or confirms consent | 9 | | electronically, in a manner that reasonably | 10 | | demonstrates that the party can access information in | 11 | | the electronic form that will be used for notices or | 12 | | documents delivered by electronic means as to which the | 13 | | party has given consent; and | 14 | | (4) after consent of the party is given, the insurer, | 15 | | in the event a change in the hardware or software | 16 | | requirements needed to access or retain a notice or | 17 | | document delivered by electronic means creates a material | 18 | | risk that the party will not be able to access or retain a | 19 | | subsequent notice or document to which the consent applies: | 20 | | (A) provides the party with a statement that | 21 | | describes: | 22 | | (i) the revised hardware and software | 23 | | requirements for access to and retention of a | 24 | | notice or document delivered by electronic means; | 25 | | and | 26 | | (ii) the right of the party to withdraw consent |
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| 1 | | without the imposition of any condition or | 2 | | consequence that was not disclosed at the time of | 3 | | initial consent; and | 4 | | (B) complies with paragraph (2) of this subsection | 5 | | (d). | 6 | | (e) Delivery of a notice or document in accordance with | 7 | | this Section does not affect requirements related to content or | 8 | | timing of any notice or document required under applicable law. | 9 | | (f) If a provision of this Section or applicable law | 10 | | requiring a notice or document to be provided to a party | 11 | | expressly requires verification or acknowledgment of receipt | 12 | | of the notice or document, the notice or document may be | 13 | | delivered by electronic means only if the method used provides | 14 | | for verification or acknowledgment of receipt. | 15 | | (g) The legal effectiveness, validity, or enforceability | 16 | | of any contract or policy of insurance executed by a party may | 17 | | not be denied solely because of the failure to obtain | 18 | | electronic consent or confirmation of consent of the party in | 19 | | accordance with subparagraph (B) of paragraph (3) of subsection | 20 | | (d) of this Section. | 21 | | (h) A withdrawal of consent by a party does not affect the | 22 | | legal effectiveness, validity, or enforceability of a notice or | 23 | | document delivered by electronic means to the party before the | 24 | | withdrawal of consent is effective. | 25 | | A withdrawal of consent by a party is effective within a | 26 | | reasonable period of time after receipt of the withdrawal by |
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| 1 | | the insurer. | 2 | | Failure by an insurer to comply with paragraph (4) of | 3 | | subsection (d) of this Section and subsection (j) of this | 4 | | Section may be treated, at the election of the party, as a | 5 | | withdrawal of consent for purposes of this Section. | 6 | | (i) This Section does not apply to a notice or document | 7 | | delivered by an insurer in an electronic form before the | 8 | | effective date of this amendatory Act of the 99th General | 9 | | Assembly to a party who, before that date, has consented to | 10 | | receive notice or document in an electronic form otherwise | 11 | | allowed by law. | 12 | | (j) If the consent of a party to receive certain notices or | 13 | | documents in an electronic form is on file with an insurer | 14 | | before the effective date of this amendatory Act of the 99th | 15 | | General Assembly and, pursuant to this Section, an insurer | 16 | | intends to deliver additional notices or documents to the party | 17 | | in an electronic form, then prior to delivering such additional | 18 | | notices or documents electronically, the insurer shall: | 19 | | (1) provide the party with a statement that | 20 | | describes: | 21 | | (A) the notices or documents that shall be | 22 | | delivered by electronic means under this Section | 23 | | that were not previously delivered electronically; | 24 | | and | 25 | | (B) the party's right to withdraw consent to | 26 | | have notices or documents delivered by electronic |
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| 1 | | means without the imposition of any condition or | 2 | | consequence that was not disclosed at the time of | 3 | | initial consent; and | 4 | | (2) comply with paragraph (2) of subsection (d) of | 5 | | this Section. | 6 | | (k) An insurer shall deliver a notice or document by any | 7 | | other delivery method permitted by law other than electronic | 8 | | means if: | 9 | | (1) the insurer attempts to deliver the notice or | 10 | | document by electronic means and has a reasonable basis for | 11 | | believing that the notice or document has not been received | 12 | | by the party; or | 13 | | (2) the insurer becomes aware that the electronic mail | 14 | | address provided by the party is no longer valid. | 15 | | (l) A producer shall not be subject to civil liability for | 16 | | any harm or injury that occurs as a result of a party's | 17 | | election to receive any notice or document by electronic means | 18 | | or by an insurer's failure to deliver a notice or document by | 19 | | electronic means unless the harm or injury is caused by the | 20 | | willful and wanton misconduct of the producer. | 21 | | (m) This Section shall not be construed to modify, limit, | 22 | | or supersede the provisions of the federal Electronic | 23 | | Signatures in Global and National Commerce Act, as amended. | 24 | | (n) Nothing in this Section shall prevent an insurer from | 25 | | posting on the insurer's Internet site any standard policy and | 26 | | any endorsements to such a policy that does not contain |
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| 1 | | personally identifiable information, in accordance with | 2 | | Section 143.33 of this Code, in lieu of delivery to a | 3 | | policyholder, insured, or applicant for insurance by any other | 4 | | method.
| 5 | | Section 97. Severability. The provisions of this Act are | 6 | | severable under Section 1.31 of the Statute on Statutes.
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