Full Text of HB3244 100th General Assembly
HB3244enr 100TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning insurance.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Insurance Code is amended by adding | 5 | | Section 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 | 20 | | required as part of a premium finance agreement including, but | 21 | | not limited to, an applicant or contracting party. For the | 22 | | purposes of this Section, "party" includes the producer of | 23 | | record. |
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| 1 | | (b) Subject to the requirements of this Section, any notice | 2 | | to a party or any other document required under applicable law | 3 | | in a premium finance agreement or that is to serve as evidence | 4 | | of a premium finance agreement may be delivered, stored, and | 5 | | presented by electronic means so long as it meets the | 6 | | requirements of the Electronic Commerce Security Act. | 7 | | (c) Delivery of a notice or document in accordance with | 8 | | this Section shall be considered equivalent to delivery by | 9 | | first class mail or first class mail, postage prepaid. | 10 | | (d) A notice or document may be delivered by electronic | 11 | | means by a premium finance company to a party under this | 12 | | Section if: | 13 | | (1) the party has affirmatively consented to that | 14 | | method of delivery and has not withdrawn the consent; | 15 | | (2) the party, before giving consent, is provided with | 16 | | a clear and conspicuous statement informing the party of: | 17 | | (A)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 | 8 | | this Section does not affect requirements related to content or | 9 | | timing of any notice or document required under applicable law. | 10 | | (f) The legal effectiveness, validity, or enforceability | 11 | | of any premium finance agreement executed by a party may not be | 12 | | denied solely because of the failure to obtain electronic | 13 | | consent or confirmation of consent of the party in accordance | 14 | | with subparagraph (B) of paragraph (3) of subsection (d) of | 15 | | this Section. | 16 | | (g) A withdrawal of consent by a party does not affect the | 17 | | legal effectiveness, validity, or enforceability of a notice or | 18 | | document delivered by electronic means to the party before the | 19 | | withdrawal of consent is effective. | 20 | | A withdrawal of consent by a party is effective within a | 21 | | reasonable period of time after receipt of the withdrawal by | 22 | | the premium finance company. | 23 | | Failure by a premium finance company to comply with | 24 | | paragraph (4) of subsection (d) of this Section and subsection | 25 | | (j) of this Section may be treated, at the election of the | 26 | | party, 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 | 2 | | delivered by a premium finance company in an electronic form | 3 | | before the effective date of this amendatory Act of the 100th | 4 | | General Assembly to a party who, before that date, has | 5 | | consented to receive notice or document in an electronic form | 6 | | otherwise allowed by law. | 7 | | (i) If the consent of a party to receive certain notices or | 8 | | documents in an electronic form is on file with a premium | 9 | | finance company before the effective date of this amendatory | 10 | | Act of the 100th General Assembly and, pursuant to this | 11 | | Section, a premium finance company intends to deliver | 12 | | additional notices or documents to the party in an electronic | 13 | | form, then prior to delivering such additional notices or | 14 | | documents 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 | 3 | | document by any other delivery method permitted by law other | 4 | | than 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 | 13 | | liability for any harm or injury that occurs as a result of a | 14 | | party's election to receive any notice or document by | 15 | | electronic means or by a premium finance company's failure to | 16 | | deliver a notice or document by electronic means unless the | 17 | | harm or injury is caused by the willful and wanton misconduct | 18 | | of the producer of record. | 19 | | (l) This Section shall not be construed to modify, limit, | 20 | | or supersede the provisions of the federal Electronic | 21 | | Signatures in Global and National Commerce Act, as amended.
| 22 | | Section 99. Effective date. This Act takes effect January | 23 | | 1, 2018.
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