Public Act 099-0167
 
SB1680 EnrolledLRB099 10100 MLM 30323 b

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    method of delivery and has not withdrawn the consent;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        imposed in the event consent is withdrawn;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

Effective Date: 1/1/2016