103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB2779

 

Introduced 2/16/2023, by Rep. Robert "Bob" Rita

 

SYNOPSIS AS INTRODUCED:
 
215 ILCS 5/143.34

    Amends the Illinois Insurance Code. Provides that the plan sponsor of a health benefit plan may, on behalf of persons covered by the plan, provide the consent to the mailing of all communications related to the plan by electronic means and to the electronic delivery of any health insurance identification card; that before consenting on behalf of a party, a plan sponsor must confirm that the party routinely uses electronic communications during the normal course of employment; and that before providing communications or delivery by electronic means, the insurer providing the health benefit plan must provide the covered person an opportunity to opt out of communications or delivery by electronic means. Defines "health benefit plan" and "plan sponsor".


LRB103 27210 BMS 53580 b

 

 

A BILL FOR

 

HB2779LRB103 27210 BMS 53580 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Insurance Code is amended by
5changing Section 143.34 as follows:
 
6    (215 ILCS 5/143.34)
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
13    accessible via the Internet, mobile application, computer,
14    mobile device, tablet, or any other electronic device,
15    together with separate notice of the posting, which shall
16    be 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    "Health benefit plan" means a policy, contract,
20certificate, or agreement entered into, offered by, or issued
21by an insurer to provide, deliver, arrange for, pay for, or
22reimburse any of the costs of health care services, including
23a vision or dental benefit plan.

 

 

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1    "Party" means any recipient of any notice or document
2required as part of an insurance transaction, including, but
3not limited to, an applicant, an insured, a policyholder, or
4an annuity contract holder.
5    "Plan sponsor" means a person who establishes, adopts, or
6maintains a health benefit plan that covers residents of this
7State, including a plan established, adopted, or maintained by
8an employer or jointly by an employer and one or more employee
9organizations, an association, a committee, a joint board of
10trustees, or any similar group of representatives who
11establish, adopt, or maintain a plan. "Plan sponsor" does not
12include a regulated entity.
13    (b) Subject to the requirements of this Section, any
14notice to a party or any other document required under
15applicable law in an insurance transaction or that is to serve
16as evidence of insurance coverage may be delivered, stored,
17and presented by electronic means so long as it meets the
18requirements of the Uniform Electronic Transactions Act.
19    (c) Delivery of a notice or document in accordance with
20this Section shall be considered equivalent to any delivery
21method required under applicable law, including delivery by
22first class mail; first class mail, postage prepaid; certified
23mail; certificate of mail; or certificate of mailing.
24    (d) A notice or document may be delivered by electronic
25means by an insurer to a party under this Section if:
26        (1) the party has affirmatively consented to that

 

 

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1    method of delivery and has not withdrawn the consent;
2        (2) the party, before giving consent, is provided with
3    a clear and conspicuous statement informing the party of:
4            (A) the right of the party to withdraw consent to
5        have a notice or document delivered by electronic
6        means, at any time, and any conditions or consequences
7        imposed in the event consent is withdrawn;
8            (B) the types of notices and documents to which
9        the party's consent would apply;
10            (C) the right of a party to have a notice or
11        document delivered in paper form; and
12            (D) the procedures a party must follow to withdraw
13        consent to have a notice or document delivered by
14        electronic means and to update the party's electronic
15        mail address;
16        (3) the party:
17            (A) before giving consent, is provided with a
18        statement of the hardware and software requirements
19        for access to, and retention of, a notice or document
20        delivered by electronic means; and
21            (B) consents electronically, or confirms consent
22        electronically, in a manner that reasonably
23        demonstrates that the party can access information in
24        the electronic form that will be used for notices or
25        documents delivered by electronic means as to which
26        the party has given consent; and

 

 

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1        (4) after consent of the party is given, the insurer,
2    in the event a change in the hardware or software
3    requirements needed to access or retain a notice or
4    document delivered by electronic means creates a material
5    risk that the party will not be able to access or retain a
6    subsequent notice or document to which the consent
7    applies:
8            (A) provides the party with a statement that
9        describes:
10                (i) the revised hardware and software
11            requirements for access to and retention of a
12            notice or document delivered by electronic means;
13            and
14                (ii) the right of the party to withdraw
15            consent without the imposition of any condition or
16            consequence that was not disclosed at the time of
17            initial consent; and
18            (B) complies with paragraph (2) of this subsection
19        (d).
20    (e) Delivery of a notice or document in accordance with
21this Section does not affect requirements related to content
22or timing of any notice or document required under applicable
23law.
24    (f) If a provision of this Section or applicable law
25requiring a notice or document to be provided to a party
26expressly requires verification or acknowledgment of receipt

 

 

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1of the notice or document, the notice or document may be
2delivered by electronic means only if the method used provides
3for verification or acknowledgment of receipt.
4    (g) The legal effectiveness, validity, or enforceability
5of any contract or policy of insurance executed by a party may
6not be denied solely because of the failure to obtain
7electronic consent or confirmation of consent of the party in
8accordance with subparagraph (B) of paragraph (3) of
9subsection (d) of this Section.
10    (h) A withdrawal of consent by a party does not affect the
11legal effectiveness, validity, or enforceability of a notice
12or document delivered by electronic means to the party before
13the withdrawal of consent is effective.
14    A withdrawal of consent by a party is effective within a
15reasonable period of time after receipt of the withdrawal by
16the insurer.
17    Failure by an insurer to comply with paragraph (4) of
18subsection (d) of this Section and subsection (j) of this
19Section may be treated, at the election of the party, as a
20withdrawal of consent for purposes of this Section.
21    (i) This Section does not apply to a notice or document
22delivered by an insurer in an electronic form before the
23effective date of this amendatory Act of the 99th General
24Assembly to a party who, before that date, has consented to
25receive notice or document in an electronic form otherwise
26allowed by law.

 

 

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1    (j) If the consent of a party to receive certain notices or
2documents in an electronic form is on file with an insurer
3before the effective date of this amendatory Act of the 99th
4General Assembly and, pursuant to this Section, an insurer
5intends to deliver additional notices or documents to the
6party in an electronic form, then prior to delivering such
7additional notices or documents electronically, the insurer
8shall:
9            (1) provide the party with a statement that
10        describes:
11                (A) the notices or documents that shall be
12            delivered by electronic means under this Section
13            that were not previously delivered electronically;
14            and
15                (B) the party's right to withdraw consent to
16            have notices or documents delivered by electronic
17            means without the imposition of any condition or
18            consequence that was not disclosed at the time of
19            initial consent; and
20            (2) comply with paragraph (2) of subsection (d) of
21        this Section.
22    (k) An insurer shall deliver a notice or document by any
23other delivery method permitted by law other than electronic
24means if:
25        (1) the insurer attempts to deliver the notice or
26    document by electronic means and has a reasonable basis

 

 

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1    for believing that the notice or document has not been
2    received by the party; or
3        (2) the insurer becomes aware that the electronic mail
4    address provided by the party is no longer valid.
5    (l) A producer shall not be subject to civil liability for
6any harm or injury that occurs as a result of a party's
7election to receive any notice or document by electronic means
8or by an insurer's failure to deliver a notice or document by
9electronic means unless the harm or injury is caused by the
10willful and wanton misconduct of the producer.
11    (m) This Section shall not be construed to modify, limit,
12or supersede the provisions of the federal Electronic
13Signatures in Global and National Commerce Act, as amended.
14    (n) Nothing in this Section shall prevent an insurer from
15posting on the insurer's Internet site any standard policy and
16any endorsements to such a policy that does not contain
17personally identifiable information, in accordance with
18Section 143.33 of this Code, in lieu of delivery to a
19policyholder, insured, or applicant for insurance by any other
20method.
21    (o) The plan sponsor of a health benefit plan may, on
22behalf of persons covered by the plan, provide the consent to
23the mailing of all communications related to the plan by
24electronic means and to the electronic delivery of any health
25insurance identification card. Before consenting on behalf of
26a party, a plan sponsor must confirm that the party routinely

 

 

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1uses electronic communications during the normal course of
2employment. Before providing communications or delivery by
3electronic means, the insurer providing the health benefit
4plan must provide the covered person an opportunity to opt out
5of communications or delivery by electronic means.
6(Source: P.A. 102-38, eff. 6-25-21.)