| ||||
| Public Act 100-0495 | ||||
| ||||
| ||||
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 513a13 as follows: | ||||
(215 ILCS 5/513a13 new) | ||||
Sec. 513a13. Electronic delivery of 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 a premium finance agreement including, but | ||||
not limited to, an applicant or contracting party. For the | ||||
purposes of this Section, "party" includes the producer of | ||||
record. | ||||
(b) Subject to the requirements of this Section, any notice | ||
to a party or any other document required under applicable law | ||
in a premium finance agreement or that is to serve as evidence | ||
of a premium finance agreement 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 delivery by | ||
first class mail or first class mail, postage prepaid. | ||
(d) A notice or document may be delivered by electronic | ||
means by a premium finance company 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method of delivery and has not withdrawn the consent; | ||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imposed in the event consent is withdrawn; | ||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 premium | ||
finance company, 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) The legal effectiveness, validity, or enforceability | ||
of any premium finance agreement 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. | ||
(g) 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 premium finance company. | ||
Failure by a premium finance company 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. | ||
(h) This Section does not apply to a notice or document | ||
delivered by a premium finance company in an electronic form | ||
before the effective date of this amendatory Act of the 100th | ||
General Assembly to a party who, before that date, has | ||
consented to receive notice or document in an electronic form | ||
otherwise allowed by law. | ||
(i) If the consent of a party to receive certain notices or | ||
documents in an electronic form is on file with a premium | ||
finance company before the effective date of this amendatory | ||
Act of the 100th General Assembly and, pursuant to this | ||
Section, a premium finance company 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 premium finance company 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. | ||
(j) A premium finance company shall deliver a notice or | ||
document by any other delivery method permitted by law other | ||
than electronic means if: | ||
(1) the premium finance company 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 premium finance company becomes aware that the | ||
electronic mail address provided by the party is no longer | ||
valid. | ||
(k) The producer of record 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 a premium finance company'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 of record. | ||
(l) 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.
| ||
Section 99. Effective date. This Act takes effect January | ||
1, 2018.
| ||