SB1680 EngrossedLRB099 10100 MLM 30323 b

1    AN ACT concerning insurance.
 
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 adding
5Section 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
20required as part of an insurance transaction, including, but
21not limited to, an applicant, an insured, a policyholder, or an
22annuity contract holder.
23    (b) Subject to the requirements of this Section, any notice

 

 

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1to a party or any other document required under applicable law
2in an insurance transaction or that is to serve as evidence of
3insurance coverage may be delivered, stored, and presented by
4electronic means so long as it meets the requirements of the
5Electronic Commerce Security Act.
6    (c) Delivery of a notice or document in accordance with
7this Section shall be considered equivalent to any delivery
8method required under applicable law, including delivery by
9first class mail; first class mail, postage prepaid; certified
10mail; certificate of mail; or certificate of mailing.
11    (d) A notice or document may be delivered by electronic
12means 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14    method of delivery and has not withdrawn the consent;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
7this Section does not affect requirements related to content or
8timing of any notice or document required under applicable law.
9    (f) If a provision of this Section or applicable law
10requiring a notice or document to be provided to a party
11expressly requires verification or acknowledgment of receipt
12of the notice or document, the notice or document may be
13delivered by electronic means only if the method used provides
14for verification or acknowledgment of receipt.
15    (g) The legal effectiveness, validity, or enforceability
16of any contract or policy of insurance executed by a party may
17not be denied solely because of the failure to obtain
18electronic consent or confirmation of consent of the party in
19accordance 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
22legal effectiveness, validity, or enforceability of a notice or
23document delivered by electronic means to the party before the
24withdrawal of consent is effective.
25    A withdrawal of consent by a party is effective within a
26reasonable period of time after receipt of the withdrawal by

 

 

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1the insurer.
2    Failure by an insurer to comply with paragraph (4) of
3subsection (d) of this Section and subsection (j) of this
4Section may be treated, at the election of the party, as a
5withdrawal of consent for purposes of this Section.
6    (i) This Section does not apply to a notice or document
7delivered by an insurer in an electronic form before the
8effective date of this amendatory Act of the 99th General
9Assembly to a party who, before that date, has consented to
10receive notice or document in an electronic form otherwise
11allowed by law.
12    (j) If the consent of a party to receive certain notices or
13documents in an electronic form is on file with an insurer
14before the effective date of this amendatory Act of the 99th
15General Assembly and, pursuant to this Section, an insurer
16intends to deliver additional notices or documents to the party
17in an electronic form, then prior to delivering such additional
18notices 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
7other delivery method permitted by law other than electronic
8means 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
16any harm or injury that occurs as a result of a party's
17election to receive any notice or document by electronic means
18or by an insurer's failure to deliver a notice or document by
19electronic means unless the harm or injury is caused by the
20willful and wanton misconduct of the producer.
21    (m) This Section shall not be construed to modify, limit,
22or supersede the provisions of the federal Electronic
23Signatures in Global and National Commerce Act, as amended.
24    (n) Nothing in this Section shall prevent an insurer from
25posting on the insurer's Internet site any standard policy and
26any endorsements to such a policy that does not contain

 

 

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1personally identifiable information, in accordance with
2Section 143.33 of this Code, in lieu of delivery to a
3policyholder, insured, or applicant for insurance by any other
4method.
 
5    Section 97. Severability. The provisions of this Act are
6severable under Section 1.31 of the Statute on Statutes.