-  This bill is not active in this session.

A00651 Summary:

SPONSORRosenthal D
COSPNSRDickens, Rosenthal L, Simon, Niou, McDonald, Barron
Add §3458, Ins L
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; requires notice in the subject line and body of an email to be clear and conspicuous.
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A00651 Actions:

01/06/2021referred to insurance
05/25/2021reported referred to codes
06/02/2021reported referred to rules
06/02/2021amend and recommit to rules 651a
06/07/2021rules report cal.410
06/07/2021substituted by s653a
 05/18/20211ST REPORT CAL.1159
 05/20/20212ND REPORT CAL.
 06/07/2021PASSED SENATE
 06/07/2021referred to codes
 06/07/2021substituted for a651a
 06/07/2021ordered to third reading rules cal.410
 06/07/2021passed assembly
 06/07/2021returned to senate
 12/22/2021SIGNED CHAP.761
 12/22/2021APPROVAL MEMO.122
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A00651 Committee Votes:

INSURANCE Chair:Cahill DATE:05/25/2021AYE/NAY:23/0 Action: Favorable refer to committee Codes

CODES Chair:Dinowitz DATE:06/02/2021AYE/NAY:22/0 Action: Favorable refer to committee Rules

RULES Chair:Gottfried DATE:06/07/2021AYE/NAY:28/1 Action: Favorable

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A00651 Floor Votes:

There are no votes for this bill in this legislative session.
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A00651 Memo:

submitted in accordance with Assembly Rule III, Sec 1(f)
SPONSOR: Rosenthal D
  TITLE OF BILL: An act to amend the insurance law, in relation to electronic delivery of property/casualty insurance notices   PURPOSE OR GENERAL IDEA OF BILL: To permit insurance notices and documents to be delivered electronically with policyholder consent.   SUMMARY OF PROVISIONS: Section 1 adds new section 3457 to the Insurance Law to permit property/casualty insurers to deliver insurance notices and documents electronically with policyholder consent.Section 2 is the effective date.   DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE): This version of the legislation removes the original language to mandate a clickwrap acknowledgement of receipt. This version strengthens to requirements for insurers to conspicuously flag relevant notices via electronic delivery.   JUSTIFICATION: There has been an increasing trend in society towards digital communi- cation. Insurance companies and consumers have both expressed interest in having the option to send and receive notices electronically.The Department of Financial Services allows the use of electronic communi- cations in some insurance related notices. However, there is significant exception to this allowance. Electronic delivery is not allowed for notices where statute requires the notice to be physically mailed. Such notices include cancellation, discontinuance or other major changes to policy. This legislation would remove these exceptions and allow for all insurance notices to be delivered electronically if the consumer affir- matively consents to delivery by this method. The bill includes safe- guards to protect the consumer including options to withdraw consent, notices of necessary software/hardware requirements and requires insur- ers to provide a clear notice of rights before consent is granted. Insurers are further required to make efforts to deliver by alternate methods in instances where electronic deliver is believed to have failed.By allowing for consumer directed opt-in for paperless delivery, we safeguard customers from missing vital information that may be lost or disregarded in mail delivery. Furthermore, this bill has positive environmental impacts by drastically reducing non-essential physical printing and postage in cases where consumers opt for electronic deliv- ery.   PRIOR LEGISLATIVE HISTORY: A.1683 (2017-2018) A.80768 (2015-2016) A16830 (2017-2018) A7877 (2020)- Referred to Insurance   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None to the state.   EFFECTIVE DATE: This act shall take effect on the ninetieth day after it shall have become law.
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A00651 Text:

                STATE OF NEW YORK
                               2021-2022 Regular Sessions
                   IN ASSEMBLY
                                     January 6, 2021
        Introduced by M. of A. D. ROSENTHAL, DICKENS, L. ROSENTHAL, SIMON, NIOU,
          McDONALD  --  Multi-Sponsored  by -- M. of A. BLANKENBUSH -- read once
          and referred to the Committee on Insurance -- reported and referred to
          the Committee on Codes -- reported and referred to  the  Committee  on
          Rules  --  Rules Committee discharged, bill amended, ordered reprinted
          as amended and recommitted to the Committee on Rules
        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 3458
     2  to read as follows:
     3    § 3458. 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
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 651--A                           2
     1  presented  by  electronic  means so long as it meets the requirements of
     2  article three of the state technology law.
     3    (c)  Delivery  of a notice or document in accordance with this section
     4  shall be considered equivalent to any  delivery  method  required  under
     5  applicable  law,  including  delivery  by  first class mail; first class
     6  mail, postage prepaid; certified mail; certificate of mail;  or  certif-
     7  icate of mailing.
     8    (d)  A  notice  or document may be delivered by electronic means by an
     9  insurer to a party under this section if:
    10    (1) the party has affirmatively consented to that method  of  delivery
    11  and has not withdrawn the consent;
    12    (2)  the  party,  before  giving consent, is provided with a clear and
    13  conspicuous statement informing the party of:
    14    (A) the right of the party to withdraw consent to  have  a  notice  or
    15  document  delivered by electronic means, at any time, and any conditions
    16  or consequences imposed in the event consent is withdrawn;
    17    (B) the types of notices and documents to which  the  party's  consent
    18  would apply;
    19    (C)  the  right  of  a party to have a notice or document delivered in
    20  paper form; and
    21    (D) the procedures a party must follow to withdraw consent to  have  a
    22  notice  or  document  delivered  by  electronic  means and to update the
    23  party's electronic mail address;
    24    (3) the party:
    25    (A) before giving consent, is provided with a statement of  the  hard-
    26  ware  and  software requirements for access to and retention of a notice
    27  or document delivered by electronic means; and
    28    (B) consents electronically, or confirms consent electronically, in  a
    29  manner  that  reasonably demonstrates that the party can access informa-
    30  tion in the electronic form that will be used for notices  or  documents
    31  delivered  by  electronic means as to which the party has given consent;
    32  and
    33    (4) after consent of the party is given, the insurer, in the  event  a
    34  change  in  the  hardware  or  software requirements needed to access or
    35  retain a notice or document delivered  by  electronic  means  creates  a
    36  material  risk  that  the  party  will not be able to access or retain a
    37  subsequent notice or document to which the consent applies:
    38    (A) provides the party with a statement that describes:
    39    (i) the revised hardware and software requirements for access  to  and
    40  retention of a notice or document delivered by electronic means; and
    41    (ii) the right of the party to withdraw consent without the imposition
    42  of  any  condition  or consequence that was not disclosed at the time of
    43  initial consent; and
    44    (B) complies with paragraph two of this subsection.
    45    (e) Any electronic mail being  sent  by  an  insurer  to  a  party  in
    46  connection  with  the  delivery  of  a  cancellation notice, non-renewal
    47  notice or conditional renewal notice delivered by electronic means shall
    48  include in the subject line and body  of  the  communication  clear  and
    49  conspicuous  language  alerting the receiving party as to the importance
    50  of the communication and the type of  notice  being  delivered  to  such
    51  party electronically.
    52    (f)  This  section  does not affect requirements related to content or
    53  timing of any notice or document required under applicable law.
    54    (g) If a provision of this  chapter  or  applicable  law  requiring  a
    55  notice  or document to be provided to a party expressly requires verifi-
    56  cation or acknowledgment of receipt  of  the  notice  or  document,  the

        A. 651--A                           3
     1  notice  or  document  may  be  delivered by electronic means only if the
     2  method used provides for verification or acknowledgment of receipt.
     3    (h)  The  legal  effectiveness,  validity,  or  enforceability  of any
     4  contract or policy of insurance executed by a party may  not  be  denied
     5  solely  because of the failure to obtain electronic consent or confirma-
     6  tion of consent of the party in  accordance  with  subparagraph  (B)  of
     7  paragraph three of subsection (d) of this section.
     8    (i)  (1)  A withdrawal of consent by a party does not affect the legal
     9  effectiveness, validity, or  enforceability  of  a  notice  or  document
    10  delivered  by  electronic  means  to  the party before the withdrawal of
    11  consent is effective.
    12    (2) A withdrawal of consent by a party is effective within  a  reason-
    13  able period of time after receipt of the withdrawal by the insurer.
    14    (3)  Failure by an insurer to comply with paragraph four of subsection
    15  (d) and subsection (k) of this section may be treated, at  the  election
    16  of the party, as a withdrawal of consent for purposes of this section.
    17    (j)  This  section does not apply to a notice or document delivered by
    18  an insurer in an electronic form  before  the  effective  date  of  this
    19  section  to  a  party  who, before that date, has consented to receive a
    20  notice or document in an electronic form otherwise allowed by law.
    21    (k) If the consent of a party to receive certain notices or  documents
    22  in  an  electronic  form is on file with an insurer before the effective
    23  date of this section, and pursuant to this section, an  insurer  intends
    24  to deliver additional notices or documents to such party in an electron-
    25  ic  form,  then prior to delivering such additional notices or documents
    26  electronically, the insurer shall:
    27    (1) provide the party with a statement that describes:
    28    (A) the notices or documents that shall  be  delivered  by  electronic
    29  means  under  this  section that were not previously delivered electron-
    30  ically; and
    31    (B) the party's right to withdraw consent to have notices or documents
    32  delivered by electronic means, without the imposition of  any  condition
    33  or consequence that was not disclosed at the time of initial consent.
    34    (2) comply with paragraph two of subsection (d) of this section.
    35    (l)  An insurer shall deliver a notice or document by any other deliv-
    36  ery method permitted by law other than electronic means if:
    37    (1) the insurer attempts to deliver the notice or  document  by  elec-
    38  tronic means and has a reasonable basis for believing that the notice or
    39  document has not been received by the party, or
    40    (2)  the  insurer  becomes  aware  that  the  electronic  mail address
    41  provided by the party is no longer valid.
    42    (m) This section may not be construed to modify, limit,  or  supersede
    43  the  provisions  of  the  federal  Electronic  Signatures  in Global and
    44  National Commerce Act, Public Law 106-229, as amended.
    45    § 2. This act shall take effect on the ninetieth day  after  it  shall
    46  have become a law.
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A00651 LFIN:

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A00651 Chamber Video/Transcript:

6-7-21Video (@ 00:12:53)Transcript pdf Transcript html
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