AMENDMENT FOR PRINTED BILL
1156ja
___________________ moved that HB 1156 be amended as follows:
On the printed bill, delete everything after the enacting clause and insert:
" Section 1. That chapter 58-1 be amended by adding thereto a NEW SECTION to read as follows:
Terms used in this Act mean:
(1) "Delivered by electronic means,":
(a) Delivery to an electronic mail address at which a party has consented to receive
notices or documents; or
(b) 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 to a party directed to the electronic mail address at
which the party consents to receive notice of the posting;
(2) "Party," any recipient of any notice or document required as part of an insurance
transaction, including an applicant, an insured, a policyholder, or an annuity contract
holder.
Section 2. That chapter 58-1 be amended by adding thereto a NEW SECTION to read as follows:
Subject to section 4 of this Act, 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 if it meets the requirements of chapter 53-10.
Section 3. That chapter 58-1 be amended by adding thereto a NEW SECTION to read as follows:
Delivery of a notice or document in accordance with the provisions of this Act is equivalent to
any delivery method required under applicable law.
Section 4. That chapter 58-1 be amended by adding thereto a NEW SECTION to read as follows:
An insurer may only deliver a notice or document to a party by electronic means pursuant to this
Act if:
(1) The party affirmatively consents to the electronic delivery and has not withdrawn the
consent;
(2) The insurer provides the party with a clear and conspicuous statement, prior to obtaining
the party's consent, informing the party of:
(a) Any right or option of the party to have the notice or document provided or made
available in paper or another nonelectronic form;
(b) The right of the party to withdraw consent to have a notice or document delivered
by electronic means and any fees, conditions, or consequences that may be imposed
in the event consent is withdrawn;
(c) Whether the party's consent applies:
(i) Only to the particular transaction as to which the notice or document must
be given; or
(ii) To an identified category of notices or documents that may be delivered by
electronic means during the course of the parties' relationship;
(d) The means by which a party may obtain a paper copy of a notice or document
delivered by electronic means, after the party consents to electronic delivery; and
(e) The procedure a party must follow to withdraw consent to have a notice or
document delivered by electronic means and to update information needed to
contact the party electronically;
(3) The insurer ensures that the party:
(a) 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 before the
party consents to electronic delivery; and
(b) Consents electronically, or confirms consent electronically, in a manner that
reasonably demonstrates the party can access information in the electronic form
that will be used for notices or documents delivered by electronic means; and
(4) 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,
provides the consenting party with a statement of:
(a) The revised hardware and software requirements for access to and retention of a
notice or document delivered by electronic means; and
(b) The right of the party to withdraw consent without the imposition of any fee,
condition, or consequence that was not disclosed under subsection (2)(b) of this
section.
Section 5. That chapter 58-1 be amended by adding thereto a NEW SECTION to read as follows:
Nothing in this Act affects any requirement related to content or timing of any notice or
document otherwise required pursuant to applicable law.
Section 6. That chapter 58-1 be amended by adding thereto a NEW SECTION to read as follows:
If a provision of 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 only be delivered by electronic means if the method used provides for verification
or acknowledgment of receipt.
Section 7. That chapter 58-1 be amended by adding thereto a NEW SECTION to read as follows:
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 subsection (3)(b) of section 4 of this Act.
Section 8. That chapter 58-1 be amended by adding thereto a NEW SECTION to read as follows:
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. If an insurer fails to comply
with section 4 of this Act, the party may treat the failure as a withdrawal of consent for purposes of
this Act.
Section 9. That chapter 58-1 be amended by adding thereto a NEW SECTION to read as follows:
The provisions of this Act do not apply to a notice or document delivered by an insurer in an
electronic form before the effective date of this Act to a party who, before that date, consented to
receive notice or document in an electronic form otherwise allowed by law.
Section 10. That chapter 58-1 be amended by adding thereto a NEW SECTION to read as
follows:
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 Act, and pursuant to this Act, an insurer intends to
deliver additional notices or documents to such party in an electronic form, then prior to delivering
such additional notices or documents electronically, the insurer shall notify the party of:
(1) The notices or documents that may be delivered by electronic means pursuant to this Act
that were not previously delivered electronically; and
(2) The party's right to withdraw consent to have notices or documents delivered by electronic
means.
Section 11. That chapter 58-1 be amended by adding thereto a NEW SECTION to read as
follows:
Except as otherwise provided by law, if an oral communication or a recording of an oral
communication from a party is reliably stored and reproduced by an insurer, the oral communication
or recording qualifies as a notice or document delivered by electronic means for purposes of this Act.
If a provision of applicable law requires a signature, notice, or document to be notarized,
acknowledged, verified, or made under oath, the requirement is satisfied if the electronic signature
of the person authorized to perform those acts, together with all other information required to be
included by the provision, is attached to or logically associated with the signature, notice, or
document.
Section 12. That chapter 58-1 be amended by adding thereto a NEW SECTION to read as
follows:
Notwithstanding any other provision of this Act, if a standard property and casualty insurance
policy or endorsement does not contain personally identifiable information, an insurer may mail,
deliver, or post the policy or endorsement on the insurer's website. If the insurer elects to post an
insurance policy or endorsement on the insurer's website in lieu of mailing or delivering the
document to the insured, the insurer must comply with the following conditions:
(1) The policy and endorsement must be accessible as long as the policy or endorsement is
in force;
(2) After the policy expires, the insurer must maintain and archive the policy and
endorsement for five years after the expiration of the policy and shall make the documents
available to the party on request;
(3) The insurer must post the policy and endorsement in a manner that allows the insured to
print and save the policy and endorsement using a program or application that is widely
available on the internet and free to use;
(4) The insurer provides the following information in, or simultaneous with each declarations
page provided at the time of issuance of the initial policy and any renewals of that policy;
(a) A description of the exact policy and endorsement form purchased by the insured;
(b) A method by which the insured may obtain, upon request and without charge, a
paper copy of the policy; and
(c) The internet address where the insured's policy and endorsement is posted; and
(5) The insurer provides notice, in the format preferred by the insured, of any changes to the
form or endorsement, the insured's right to obtain, upon request and without charge, a
paper copy of a form, and the internet address where the form and endorsement is posted.
Section 13. That chapter 58-1 be amended by adding thereto a NEW SECTION to read as
follows:
The provisions of this Act apply to the insurance products and documents, including insurance
policies, insurance riders, insurance endorsements, and annuity contracts filed with and regulated
by the director pursuant to title 58."