HB3244 EnrolledLRB100 10325 SMS 20514 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 513a13 as follows:
 
6    (215 ILCS 5/513a13 new)
7    Sec. 513a13. Electronic delivery of 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 a premium finance agreement including, but
21not limited to, an applicant or contracting party. For the
22purposes of this Section, "party" includes the producer of
23record.

 

 

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1    (b) Subject to the requirements of this Section, any notice
2to a party or any other document required under applicable law
3in a premium finance agreement or that is to serve as evidence
4of a premium finance agreement may be delivered, stored, and
5presented by electronic means so long as it meets the
6requirements of the Electronic Commerce Security Act.
7    (c) Delivery of a notice or document in accordance with
8this Section shall be considered equivalent to delivery by
9first class mail or first class mail, postage prepaid.
10    (d) A notice or document may be delivered by electronic
11means by a premium finance company to a party under this
12Section 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14    method of delivery and has not withdrawn the consent;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20        imposed in the event consent is withdrawn;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 premium
15    finance company, in the event a change in the hardware or
16    software requirements needed to access or retain a notice
17    or document delivered by electronic means creates a
18    material risk that the party will not be able to access or
19    retain a subsequent notice or document to which the consent
20    applies:
21            (A) provides the party with a statement that
22        describes:
23                (i) the revised hardware and software
24            requirements for access to and retention of a
25            notice or document delivered by electronic means;
26            and

 

 

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1                (ii) the right of the party to withdraw consent
2            without the imposition of any condition or
3            consequence that was not disclosed at the time of
4            initial consent; and
5            (B) complies with paragraph (2) of this subsection
6        (d).
7    (e) Delivery of a notice or document in accordance with
8this Section does not affect requirements related to content or
9timing of any notice or document required under applicable law.
10    (f) The legal effectiveness, validity, or enforceability
11of any premium finance agreement executed by a party may not be
12denied solely because of the failure to obtain electronic
13consent or confirmation of consent of the party in accordance
14with subparagraph (B) of paragraph (3) of subsection (d) of
15this Section.
16    (g) A withdrawal of consent by a party does not affect the
17legal effectiveness, validity, or enforceability of a notice or
18document delivered by electronic means to the party before the
19withdrawal of consent is effective.
20    A withdrawal of consent by a party is effective within a
21reasonable period of time after receipt of the withdrawal by
22the premium finance company.
23    Failure by a premium finance company to comply with
24paragraph (4) of subsection (d) of this Section and subsection
25(j) of this Section may be treated, at the election of the
26party, as a withdrawal of consent for purposes of this Section.

 

 

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1    (h) This Section does not apply to a notice or document
2delivered by a premium finance company in an electronic form
3before the effective date of this amendatory Act of the 100th
4General Assembly to a party who, before that date, has
5consented to receive notice or document in an electronic form
6otherwise allowed by law.
7    (i) If the consent of a party to receive certain notices or
8documents in an electronic form is on file with a premium
9finance company before the effective date of this amendatory
10Act of the 100th General Assembly and, pursuant to this
11Section, a premium finance company intends to deliver
12additional notices or documents to the party in an electronic
13form, then prior to delivering such additional notices or
14documents electronically, the premium finance company shall:
15            (1) provide the party with a statement that
16        describes:
17                (A) the notices or documents that shall be
18            delivered by electronic means under this Section
19            that were not previously delivered electronically;
20            and
21                (B) the party's right to withdraw consent to
22            have notices or documents delivered by electronic
23            means without the imposition of any condition or
24            consequence that was not disclosed at the time of
25            initial consent; and
26            (2) comply with paragraph (2) of subsection (d) of

 

 

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1        this Section.
2    (j) A premium finance company shall deliver a notice or
3document by any other delivery method permitted by law other
4than electronic means if:
5        (1) the premium finance company attempts to deliver the
6    notice or document by electronic means and has a reasonable
7    basis for believing that the notice or document has not
8    been received by the party; or
9        (2) the premium finance company becomes aware that the
10    electronic mail address provided by the party is no longer
11    valid.
12    (k) The producer of record shall not be subject to civil
13liability for any harm or injury that occurs as a result of a
14party's election to receive any notice or document by
15electronic means or by a premium finance company's failure to
16deliver a notice or document by electronic means unless the
17harm or injury is caused by the willful and wanton misconduct
18of the producer of record.
19    (l) This Section shall not be construed to modify, limit,
20or supersede the provisions of the federal Electronic
21Signatures in Global and National Commerce Act, as amended.
 
22    Section 99. Effective date. This Act takes effect January
231, 2018.