Sen. William R. Haine

Filed: 4/17/2015

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 1680

2    AMENDMENT NO. ______. Amend Senate Bill 1680 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Insurance Code is amended by
5adding 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

 

 

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1    party has consented to receive notice or by any other
2    delivery method that has been consented to by the party.
3    "Party" means any recipient of any notice or document
4required as part of an insurance transaction, including, but
5not limited to, an applicant, an insured, a policyholder, or an
6annuity contract holder.
7    (b) Subject to the requirements of this Section, any notice
8to a party or any other document required under applicable law
9in an insurance transaction or that is to serve as evidence of
10insurance coverage may be delivered, stored, and presented by
11electronic means so long as it meets the requirements of the
12Electronic Commerce Security Act.
13    (c) Delivery of a notice or document in accordance with
14this Section shall be considered equivalent to any delivery
15method required under applicable law, including delivery by
16first class mail; first class mail, postage prepaid; certified
17mail; certificate of mail; or certificate of mailing.
18    (d) A notice or document may be delivered by electronic
19means by an insurer to a party under this Section if:
20        (1) the party has affirmatively consented to that
21    method of delivery and has not withdrawn the consent;
22        (2) the party, before giving consent, is provided with
23    a clear and conspicuous statement informing the party of:
24            (A) the right of the party to withdraw consent to
25        have a notice or document delivered by electronic
26        means, at any time, and any conditions or consequences

 

 

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1        imposed in the event consent is withdrawn;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

 

 

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1            (A) provides the party with a statement that
2        describes:
3                (i) the revised hardware and software
4            requirements for access to and retention of a
5            notice or document delivered by electronic means;
6            and
7                (ii) the right of the party to withdraw consent
8            without the imposition of any condition or
9            consequence that was not disclosed at the time of
10            initial consent; and
11            (B) complies with paragraph (2) of this subsection
12        (d).
13    (e) Delivery of a notice or document in accordance with
14this Section does not affect requirements related to content or
15timing of any notice or document required under applicable law.
16    (f) If a provision of this Section or applicable law
17requiring a notice or document to be provided to a party
18expressly requires verification or acknowledgment of receipt
19of the notice or document, the notice or document may be
20delivered by electronic means only if the method used provides
21for verification or acknowledgment of receipt.
22    (g) The legal effectiveness, validity, or enforceability
23of any contract or policy of insurance executed by a party may
24not be denied solely because of the failure to obtain
25electronic consent or confirmation of consent of the party in
26accordance with subparagraph (B) of paragraph (3) of subsection

 

 

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1(d) of this Section.
2    (h) A withdrawal of consent by a party does not affect the
3legal effectiveness, validity, or enforceability of a notice or
4document delivered by electronic means to the party before the
5withdrawal of consent is effective.
6    A withdrawal of consent by a party is effective within a
7reasonable period of time after receipt of the withdrawal by
8the insurer.
9    Failure by an insurer to comply with paragraph (4) of
10subsection (d) of this Section and subsection (j) of this
11Section may be treated, at the election of the party, as a
12withdrawal of consent for purposes of this Section.
13    (i) This Section does not apply to a notice or document
14delivered by an insurer in an electronic form before the
15effective date of this amendatory Act of the 99th General
16Assembly to a party who, before that date, has consented to
17receive notice or document in an electronic form otherwise
18allowed by law.
19    (j) If the consent of a party to receive certain notices or
20documents in an electronic form is on file with an insurer
21before the effective date of this amendatory Act of the 99th
22General Assembly and, pursuant to this Section, an insurer
23intends to deliver additional notices or documents to the party
24in an electronic form, then prior to delivering such additional
25notices or documents electronically, the insurer shall:
26            (1) provide the party with a statement that

 

 

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1        describes:
2                (A) the notices or documents that shall be
3            delivered by electronic means under this Section
4            that were not previously delivered electronically;
5            and
6                (B) the party's right to withdraw consent to
7            have notices or documents delivered by electronic
8            means without the imposition of any condition or
9            consequence that was not disclosed at the time of
10            initial consent; and
11            (2) comply with paragraph (2) of subsection (d) of
12        this Section.
13    (k) An insurer shall deliver a notice or document by any
14other delivery method permitted by law other than electronic
15means if:
16        (1) the insurer attempts to deliver the notice or
17    document by electronic means and has a reasonable basis for
18    believing that the notice or document has not been received
19    by the party; or
20        (2) the insurer becomes aware that the electronic mail
21    address provided by the party is no longer valid.
22    (l) A producer shall not be subject to civil liability for
23any harm or injury that occurs as a result of a party's
24election to receive any notice or document by electronic means
25or by an insurer's failure to deliver a notice or document by
26electronic means unless the harm or injury is caused by the

 

 

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1willful and wanton misconduct of the producer.
2    (m) This Section shall not be construed to modify, limit,
3or supersede the provisions of the federal Electronic
4Signatures in Global and National Commerce Act, as amended.
5    (n) Nothing in this Section shall prevent an insurer from
6posting on the insurer's Internet site any standard policy and
7any endorsements to such a policy that does not contain
8personally identifiable information, in accordance with
9Section 143.33 of this Code, in lieu of delivery to a
10policyholder, insured, or applicant for insurance by any other
11method.
 
12    Section 97. Severability. The provisions of this Act are
13severable under Section 1.31 of the Statute on Statutes.".