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Public Act 100-0495


 

Public Act 0495 100TH GENERAL ASSEMBLY

  
  
  

 


 
Public Act 100-0495
 
HB3244 EnrolledLRB100 10325 SMS 20514 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 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    method of delivery and has not withdrawn the consent;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.

Effective Date: 1/1/2018