Illinois 2023-2024 Regular Session

Illinois House Bill HB2779 Compare Versions

Only one version of the bill is available at this time.

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1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2779 Introduced , by Rep. Robert "Bob" Rita SYNOPSIS AS INTRODUCED: 215 ILCS 5/143.34 Amends the Illinois Insurance Code. Provides that the plan sponsor of a health benefit plan may, on behalf of persons covered by the plan, provide the consent to the mailing of all communications related to the plan by electronic means and to the electronic delivery of any health insurance identification card; that before consenting on behalf of a party, a plan sponsor must confirm that the party routinely uses electronic communications during the normal course of employment; and that before providing communications or delivery by electronic means, the insurer providing the health benefit plan must provide the covered person an opportunity to opt out of communications or delivery by electronic means. Defines "health benefit plan" and "plan sponsor". LRB103 27210 BMS 53580 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2779 Introduced , by Rep. Robert "Bob" Rita SYNOPSIS AS INTRODUCED: 215 ILCS 5/143.34 215 ILCS 5/143.34 Amends the Illinois Insurance Code. Provides that the plan sponsor of a health benefit plan may, on behalf of persons covered by the plan, provide the consent to the mailing of all communications related to the plan by electronic means and to the electronic delivery of any health insurance identification card; that before consenting on behalf of a party, a plan sponsor must confirm that the party routinely uses electronic communications during the normal course of employment; and that before providing communications or delivery by electronic means, the insurer providing the health benefit plan must provide the covered person an opportunity to opt out of communications or delivery by electronic means. Defines "health benefit plan" and "plan sponsor". LRB103 27210 BMS 53580 b LRB103 27210 BMS 53580 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2779 Introduced , by Rep. Robert "Bob" Rita SYNOPSIS AS INTRODUCED:
3	3	215 ILCS 5/143.34 215 ILCS 5/143.34
4	4	215 ILCS 5/143.34
5	5	Amends the Illinois Insurance Code. Provides that the plan sponsor of a health benefit plan may, on behalf of persons covered by the plan, provide the consent to the mailing of all communications related to the plan by electronic means and to the electronic delivery of any health insurance identification card; that before consenting on behalf of a party, a plan sponsor must confirm that the party routinely uses electronic communications during the normal course of employment; and that before providing communications or delivery by electronic means, the insurer providing the health benefit plan must provide the covered person an opportunity to opt out of communications or delivery by electronic means. Defines "health benefit plan" and "plan sponsor".
6	6	LRB103 27210 BMS 53580 b LRB103 27210 BMS 53580 b
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8	8	A BILL FOR
9	9	HB2779LRB103 27210 BMS 53580 b HB2779 LRB103 27210 BMS 53580 b
10	10	HB2779 LRB103 27210 BMS 53580 b
11	11	1 AN ACT concerning regulation.
12	12	2 Be it enacted by the People of the State of Illinois,
13	13	3 represented in the General Assembly:
14	14	4 Section 5. The Illinois Insurance Code is amended by
15	15	5 changing Section 143.34 as follows:
16	16	6 (215 ILCS 5/143.34)
17	17	7 Sec. 143.34. Electronic notices and documents.
18	18	8 (a) As used in this Section:
19	19	9 "Delivered by electronic means" includes:
20	20	10 (1) delivery to an electronic mail address at which a
21	21	11 party has consented to receive notices or documents; or
22	22	12 (2) posting on an electronic network or site
23	23	13 accessible via the Internet, mobile application, computer,
24	24	14 mobile device, tablet, or any other electronic device,
25	25	15 together with separate notice of the posting, which shall
26	26	16 be provided by electronic mail to the address at which the
27	27	17 party has consented to receive notice or by any other
28	28	18 delivery method that has been consented to by the party.
29	29	19 "Health benefit plan" means a policy, contract,
30	30	20 certificate, or agreement entered into, offered by, or issued
31	31	21 by an insurer to provide, deliver, arrange for, pay for, or
32	32	22 reimburse any of the costs of health care services, including
33	33	23 a vision or dental benefit plan.
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37	37	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2779 Introduced , by Rep. Robert "Bob" Rita SYNOPSIS AS INTRODUCED:
38	38	215 ILCS 5/143.34 215 ILCS 5/143.34
39	39	215 ILCS 5/143.34
40	40	Amends the Illinois Insurance Code. Provides that the plan sponsor of a health benefit plan may, on behalf of persons covered by the plan, provide the consent to the mailing of all communications related to the plan by electronic means and to the electronic delivery of any health insurance identification card; that before consenting on behalf of a party, a plan sponsor must confirm that the party routinely uses electronic communications during the normal course of employment; and that before providing communications or delivery by electronic means, the insurer providing the health benefit plan must provide the covered person an opportunity to opt out of communications or delivery by electronic means. Defines "health benefit plan" and "plan sponsor".
41	41	LRB103 27210 BMS 53580 b LRB103 27210 BMS 53580 b
42	42	LRB103 27210 BMS 53580 b
43	43	A BILL FOR
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49	49	215 ILCS 5/143.34
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68	68	1 "Party" means any recipient of any notice or document
69	69	2 required as part of an insurance transaction, including, but
70	70	3 not limited to, an applicant, an insured, a policyholder, or
71	71	4 an annuity contract holder.
72	72	5 "Plan sponsor" means a person who establishes, adopts, or
73	73	6 maintains a health benefit plan that covers residents of this
74	74	7 State, including a plan established, adopted, or maintained by
75	75	8 an employer or jointly by an employer and one or more employee
76	76	9 organizations, an association, a committee, a joint board of
77	77	10 trustees, or any similar group of representatives who
78	78	11 establish, adopt, or maintain a plan. "Plan sponsor" does not
79	79	12 include a regulated entity.
80	80	13 (b) Subject to the requirements of this Section, any
81	81	14 notice to a party or any other document required under
82	82	15 applicable law in an insurance transaction or that is to serve
83	83	16 as evidence of insurance coverage may be delivered, stored,
84	84	17 and presented by electronic means so long as it meets the
85	85	18 requirements of the Uniform Electronic Transactions Act.
86	86	19 (c) Delivery of a notice or document in accordance with
87	87	20 this Section shall be considered equivalent to any delivery
88	88	21 method required under applicable law, including delivery by
89	89	22 first class mail; first class mail, postage prepaid; certified
90	90	23 mail; certificate of mail; or certificate of mailing.
91	91	24 (d) A notice or document may be delivered by electronic
92	92	25 means by an insurer to a party under this Section if:
93	93	26 (1) the party has affirmatively consented to that
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104	104	1 method of delivery and has not withdrawn the consent;
105	105	2 (2) the party, before giving consent, is provided with
106	106	3 a clear and conspicuous statement informing the party of:
107	107	4 (A) the right of the party to withdraw consent to
108	108	5 have a notice or document delivered by electronic
109	109	6 means, at any time, and any conditions or consequences
110	110	7 imposed in the event consent is withdrawn;
111	111	8 (B) the types of notices and documents to which
112	112	9 the party's consent would apply;
113	113	10 (C) the right of a party to have a notice or
114	114	11 document delivered in paper form; and
115	115	12 (D) the procedures a party must follow to withdraw
116	116	13 consent to have a notice or document delivered by
117	117	14 electronic means and to update the party's electronic
118	118	15 mail address;
119	119	16 (3) the party:
120	120	17 (A) before giving consent, is provided with a
121	121	18 statement of the hardware and software requirements
122	122	19 for access to, and retention of, a notice or document
123	123	20 delivered by electronic means; and
124	124	21 (B) consents electronically, or confirms consent
125	125	22 electronically, in a manner that reasonably
126	126	23 demonstrates that the party can access information in
127	127	24 the electronic form that will be used for notices or
128	128	25 documents delivered by electronic means as to which
129	129	26 the party has given consent; and
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140	140	1 (4) after consent of the party is given, the insurer,
141	141	2 in the event a change in the hardware or software
142	142	3 requirements needed to access or retain a notice or
143	143	4 document delivered by electronic means creates a material
144	144	5 risk that the party will not be able to access or retain a
145	145	6 subsequent notice or document to which the consent
146	146	7 applies:
147	147	8 (A) provides the party with a statement that
148	148	9 describes:
149	149	10 (i) the revised hardware and software
150	150	11 requirements for access to and retention of a
151	151	12 notice or document delivered by electronic means;
152	152	13 and
153	153	14 (ii) the right of the party to withdraw
154	154	15 consent without the imposition of any condition or
155	155	16 consequence that was not disclosed at the time of
156	156	17 initial consent; and
157	157	18 (B) complies with paragraph (2) of this subsection
158	158	19 (d).
159	159	20 (e) Delivery of a notice or document in accordance with
160	160	21 this Section does not affect requirements related to content
161	161	22 or timing of any notice or document required under applicable
162	162	23 law.
163	163	24 (f) If a provision of this Section or applicable law
164	164	25 requiring a notice or document to be provided to a party
165	165	26 expressly requires verification or acknowledgment of receipt
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176	176	1 of the notice or document, the notice or document may be
177	177	2 delivered by electronic means only if the method used provides
178	178	3 for verification or acknowledgment of receipt.
179	179	4 (g) The legal effectiveness, validity, or enforceability
180	180	5 of any contract or policy of insurance executed by a party may
181	181	6 not be denied solely because of the failure to obtain
182	182	7 electronic consent or confirmation of consent of the party in
183	183	8 accordance with subparagraph (B) of paragraph (3) of
184	184	9 subsection (d) of this Section.
185	185	10 (h) A withdrawal of consent by a party does not affect the
186	186	11 legal effectiveness, validity, or enforceability of a notice
187	187	12 or document delivered by electronic means to the party before
188	188	13 the withdrawal of consent is effective.
189	189	14 A withdrawal of consent by a party is effective within a
190	190	15 reasonable period of time after receipt of the withdrawal by
191	191	16 the insurer.
192	192	17 Failure by an insurer to comply with paragraph (4) of
193	193	18 subsection (d) of this Section and subsection (j) of this
194	194	19 Section may be treated, at the election of the party, as a
195	195	20 withdrawal of consent for purposes of this Section.
196	196	21 (i) This Section does not apply to a notice or document
197	197	22 delivered by an insurer in an electronic form before the
198	198	23 effective date of this amendatory Act of the 99th General
199	199	24 Assembly to a party who, before that date, has consented to
200	200	25 receive notice or document in an electronic form otherwise
201	201	26 allowed by law.
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212	212	1 (j) If the consent of a party to receive certain notices or
213	213	2 documents in an electronic form is on file with an insurer
214	214	3 before the effective date of this amendatory Act of the 99th
215	215	4 General Assembly and, pursuant to this Section, an insurer
216	216	5 intends to deliver additional notices or documents to the
217	217	6 party in an electronic form, then prior to delivering such
218	218	7 additional notices or documents electronically, the insurer
219	219	8 shall:
220	220	9 (1) provide the party with a statement that
221	221	10 describes:
222	222	11 (A) the notices or documents that shall be
223	223	12 delivered by electronic means under this Section
224	224	13 that were not previously delivered electronically;
225	225	14 and
226	226	15 (B) the party's right to withdraw consent to
227	227	16 have notices or documents delivered by electronic
228	228	17 means without the imposition of any condition or
229	229	18 consequence that was not disclosed at the time of
230	230	19 initial consent; and
231	231	20 (2) comply with paragraph (2) of subsection (d) of
232	232	21 this Section.
233	233	22 (k) An insurer shall deliver a notice or document by any
234	234	23 other delivery method permitted by law other than electronic
235	235	24 means if:
236	236	25 (1) the insurer attempts to deliver the notice or
237	237	26 document by electronic means and has a reasonable basis
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248	248	1 for believing that the notice or document has not been
249	249	2 received by the party; or
250	250	3 (2) the insurer becomes aware that the electronic mail
251	251	4 address provided by the party is no longer valid.
252	252	5 (l) A producer shall not be subject to civil liability for
253	253	6 any harm or injury that occurs as a result of a party's
254	254	7 election to receive any notice or document by electronic means
255	255	8 or by an insurer's failure to deliver a notice or document by
256	256	9 electronic means unless the harm or injury is caused by the
257	257	10 willful and wanton misconduct of the producer.
258	258	11 (m) This Section shall not be construed to modify, limit,
259	259	12 or supersede the provisions of the federal Electronic
260	260	13 Signatures in Global and National Commerce Act, as amended.
261	261	14 (n) Nothing in this Section shall prevent an insurer from
262	262	15 posting on the insurer's Internet site any standard policy and
263	263	16 any endorsements to such a policy that does not contain
264	264	17 personally identifiable information, in accordance with
265	265	18 Section 143.33 of this Code, in lieu of delivery to a
266	266	19 policyholder, insured, or applicant for insurance by any other
267	267	20 method.
268	268	21 (o) The plan sponsor of a health benefit plan may, on
269	269	22 behalf of persons covered by the plan, provide the consent to
270	270	23 the mailing of all communications related to the plan by
271	271	24 electronic means and to the electronic delivery of any health
272	272	25 insurance identification card. Before consenting on behalf of
273	273	26 a party, a plan sponsor must confirm that the party routinely
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284	284	1 uses electronic communications during the normal course of
285	285	2 employment. Before providing communications or delivery by
286	286	3 electronic means, the insurer providing the health benefit
287	287	4 plan must provide the covered person an opportunity to opt out
288	288	5 of communications or delivery by electronic means.
289	289	6 (Source: P.A. 102-38, eff. 6-25-21.)
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