Kansas 2023-2024 Regular Session

Kansas Senate Bill SB553 Compare Versions

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1	1	Session of 2024
2	2	SENATE BILL No. 553
3	3	By Committee on Federal and State Affairs
4	4	3-14
5	5	AN ACT concerning insurance; relating to health insurance; permitting a
6	6	plan sponsor to authorize electronic delivery of plan documents and
7	7	identification cards for certain insured individuals covered by a health
8	8	benefit plan; amending K.S.A. 40-5801, 40-5803 and 40-5804 and
9	9	repealing the existing sections; also repealing K.S.A. 40-5802.
10	10	Be it enacted by the Legislature of the State of Kansas:
11	11	New Section 1. (a) The plan sponsor of a health benefit plan may, on
12	12	behalf of health benefit plan covered persons, provide the consent to the
13	13	delivery of all communications related to the plan by electronic means,
14	14	otherwise required by K.S.A. 40-5804, and amendments thereto, and to the
15	15	electronic delivery of any health insurance identification cards.
16	16	(b) Before providing consent on behalf of a health benefit plan
17	17	covered person, pursuant to subsection (a), a plan sponsor shall confirm
18	18	that such health benefit plan covered person routinely, at least once every
19	19	24 hours during the work week, uses electronic communications during the
20	20	normal course of employment of such health benefit plan covered person.
21	21	(c) Before utilizing electronic means to deliver any plan
22	22	communications or health insurance identification cards, the health benefit
23	23	plan shall:
24	24	(1) Provide the health benefit plan covered person with an
25	25	opportunity to opt out of electronic delivery and select United States mail
26	26	as the preferred method of delivery for such health benefit plan covered
27	27	person; and
28	28	(2) document that all applicable requirements under K.S.A. 40-5804,
29	29	and amendments thereto, have been satisfied.
30	30	Sec. 2. K.S.A. 40-5801 is hereby amended to read as follows: 40-
31	31	5801. The provisions of K.S.A. 40-5801 through 40-5804 and section 1,
32	32	and amendments thereto, shall be known and may be cited as the
33	33	electronic notice and document act.
34	34	Sec. 3. K.S.A. 40-5803 is hereby amended to read as follows: 40-
35	35	5803. For the purposes of this act:
36	36	(a) "Delivered by electronic means" includes:
37	37	(1) Delivery to an electronic mail address at which a party has
38	38	consented to receive notices or documents; or
39	39	(2) posting on an electronic network or site accessible via the internet,
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76	76	mobile application, computer, mobile device, tablet or any other electronic
77	77	device, together with separate notice of the posting, which shall be
78	78	provided by electronic mail to the address at which the party has consented
79	79	to receive notice or by any other delivery method that has been consented
80	80	to by the party.
81	81	(b) "Party" means any recipient of any notice or document required as
82	82	part of an insurance transaction, including, but not limited to, an applicant,
83	83	an insured, a policyholder or an annuity contract holder. "Party" does not
84	84	include a "health benefit plan covered person."
85	85	(c) "Health benefit plan" means the same as in K.S.A. 40-4602, and
86	86	amendments thereto. "Health benefit plan" shall also include any:
87	87	(1) Individual health insurance policy;
88	88	(2) individual or group dental insurance policy; or
89	89	(3) nonprofit dental services corporation.
90	90	(d) "Health benefit plan covered person" means a policyholder,
91	91	subscriber, enrollee or other individual participating in a health benefit
92	92	plan.
93	93	(e) "Insured" means an individual who is covered by an insurance
94	94	policy, including a health benefit plan.
95	95	(f) "Nonprofit dental services corporation" means a nonprofit
96	96	corporation organized pursuant to the nonprofit dental service corporation
97	97	act, K.S.A. 40-19a01 et seq., and amendments thereto.
98	98	(g) "Plan sponsor" means the:
99	99	(1) Employer in the case of an employee benefit plan established or
100	100	maintained by a single employer;
101	101	(2) employee organization in the case of a plan established or
102	102	maintained by an employee organization; or
103	103	(3) association, committee, joint board of trustees or similar group of
104	104	representatives of the parties who establish or maintain the plan in the
105	105	case of a plan established or maintained by two or more employers or
106	106	jointly by one or more employers and one or more employee
107	107	organizations.
108	108	Sec. 4. K.S.A. 40-5804 is hereby amended to read as follows: 40-
109	109	5804. (a) Subject to subsection (c), or section 1, and amendments thereto,
110	110	any notice to a party or any other document required under applicable law
111	111	in an insurance transaction or that is to serve as evidence of insurance
112	112	coverage may be delivered, stored and presented by electronic means so
113	113	long as it meets the requirements of this act.
114	114	(b) Delivery of a notice or document in accordance with this section
115	115	shall be considered equivalent to any delivery method required under
116	116	applicable law, including delivery by first class mail; first class mail,
117	117	postage prepaid; certified mail; certificate of mail; or certificate of mailing.
118	118	(c) A notice or document may be delivered by electronic means by an
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162	162	insurer to a party under this section if:
163	163	(1) The party has affirmatively consented to that method of delivery
164	164	and has not withdrawn the consent;
165	165	(2) the party, before giving consent, is provided with a clear and
166	166	conspicuous statement informing the party of:
167	167	(A) Any right or option of the party to have the notice or document
168	168	provided or made available in paper or another non-electronic form;
169	169	(B) the right of the party to withdraw consent to have a notice or
170	170	document delivered by electronic means and any fees, conditions or
171	171	consequences imposed in the event consent is withdrawn;
172	172	(C) whether the party's consent applies: (i) Only to the particular
173	173	transaction as to which the notice or document must be given; or (ii) to
174	174	identified categories of notices or documents that may be delivered by
175	175	electronic means during the course of the parties' relationship;
176	176	(D) (i) the means, after consent is given, by which a party may obtain
177	177	a paper copy of a notice or document delivered by electronic means; and
178	178	(ii) the fee, if any, for the paper copy; and
179	179	(E) the procedure a party must follow to withdraw consent to have a
180	180	notice or document delivered by electronic means and to update
181	181	information needed to contact the party electronically;
182	182	(3) the party, before giving consent, is provided with a statement of
183	183	the hardware and software requirements for access to and retention of a
184	184	notice or document delivered by electronic means; and consents
185	185	electronically, or confirms consent electronically, in a manner that
186	186	reasonably demonstrates that the party can access information in the
187	187	electronic form that will be used for notices or documents delivered by
188	188	electronic means as to which the party has given consent; and
189	189	(4) after consent of the party is given, the insurer, in the event a
190	190	change in the hardware or software requirements needed to access or retain
191	191	a notice or document delivered by electronic means creates a material risk
192	192	that the party will not be able to access or retain a subsequent notice or
193	193	document to which the consent applies, provides the party with a statement
194	194	of: (A) The revised hardware and software requirements for access to and
195	195	retention of a notice or document delivered by electronic means; and (B)
196	196	the right of the party to withdraw consent without the imposition of any
197	197	fee, condition, or consequence that was not disclosed under subsection (c)
198	198	(2).
199	199	(d) This act does not affect requirements related to content or timing
200	200	of any notice or document required under applicable law.
201	201	(e) If a provision of this act or applicable law requiring a notice or
202	202	document to be provided to a party or health benefit plan covered person
203	203	expressly requires verification or acknowledgment of receipt of the notice
204	204	or document, the notice or document may be delivered by electronic
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248	248	means only if the method used provides for verification or
249	249	acknowledgment of receipt.
250	250	(f) The legal effectiveness, validity, or enforceability of any contract
251	251	or policy of insurance executed by a party or health benefit plan covered
252	252	person may not be denied solely because of the failure to obtain electronic
253	253	consent or confirmation of consent of the party in accordance with
254	254	subsection (c)(3) or section 1, and amendments thereto.
255	255	(g) A withdrawal of consent by a party does or health benefit plan
256	256	covered person shall not affect the legal effectiveness, validity, or
257	257	enforceability of a notice or document delivered by electronic means to the
258	258	party or health benefit plan covered person before the withdrawal of
259	259	consent is effective. A withdrawal of consent by a party or health benefit
260	260	plan covered person is effective within a reasonable period of time after
261	261	receipt of the withdrawal by the insurer. Failure by an insurer to comply
262	262	with subsection (c)(4) may be treated, at the election of the party or health
263	263	benefit plan covered person, as a withdrawal of consent for purposes of
264	264	this section.
265	265	(h) This section does not apply to a notice or document delivered by
266	266	an insurer in an electronic form before the effective date of this act to a
267	267	party or health benefit plan covered person who, before that date, has
268	268	consented to receive a notice or document in an electronic form otherwise
269	269	allowed by law.
270	270	(i) If the consent of a party to receive certain notices or documents in
271	271	an electronic form is on file with an insurer before the effective date of this
272	272	act, and pursuant to this section, an insurer intends to deliver additional
273	273	notices or documents to such party in an electronic form, then prior to
274	274	delivering such additional notices or documents electronically, the insurer
275	275	shall notify the party of the notices or documents that may be delivered by
276	276	electronic means under this section that were not previously delivered
277	277	electronically and the party's right to withdraw consent to have notices or
278	278	documents delivered by electronic means.
279	279	(j) Notwithstanding any other provisions of this section, insurance
280	280	policies and endorsements that do not contain personally identifiable
281	281	information may be mailed, delivered or posted on the insurer's website. If
282	282	the insurer elects to post insurance policies and endorsements on its
283	283	website in lieu of mailing or delivering such policies and endorsements to
284	284	the insured, such insurer shall comply with all of the following conditions:
285	285	(1) The policy and endorsements shall be easily accessible and
286	286	remain that way for as long as the policy is in force;
287	287	(2) after the expiration of the policy, the insurer shall archive its
288	288	expired policies and endorsements for five years and make them available
289	289	upon request;
290	290	(3) the policies and endorsements shall be posted in a manner that
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334	334	enables the insured to print and save the policy and endorsements using
335	335	programs or applications that are widely available on the internet and free
336	336	to use;
337	337	(4) the insurer shall provide notice, at the time of issuance of the
338	338	initial policy forms and any renewal forms, of a method by which insureds
339	339	may obtain, upon request and without charge, a paper or electronic copy of
340	340	their policy or endorsements;
341	341	(5) on each declarations page issued to an insured, the insurer shall
342	342	clearly identify the exact policy and endorsement forms purchased by the
343	343	insured; and
344	344	(6) the insurer shall provide notice of any changes to the forms or
345	345	endorsements, and of the insured's right to obtain, upon request and
346	346	without charge, a paper or electronic copy of such forms or endorsements.
347	347	(k) Except as otherwise provided by law, if an oral communication or
348	348	a recording of an oral communication from a party can be reliably stored
349	349	and reproduced by an insurer, the oral communication or recording may
350	350	qualify as a notice or document delivered by electronic means for purposes
351	351	of this section. If a provision of this title or applicable law requires a
352	352	signature or notice or document to be notarized, acknowledged, verified or
353	353	made under oath, the requirement is satisfied if the electronic signature of
354	354	the person authorized to perform those acts, together with all other
355	355	information required to be included by the provision, is attached to or
356	356	logically associated with the signature, notice or document.
357	357	(l) This section shall not affect any obligation of the insurer to
358	358	provide notice to any person other than the insured of any notice provided
359	359	to the insured.
360	360	(m) This section shall not be construed to modify, limit or supersede
361	361	the provisions of the federal electronic signatures in global and national
362	362	commerce act, public law 106-229, or the provisions of the uniform
363	363	electronic transactions act, K.S.A. 16-1601 et seq., and amendments
364	364	thereto.
365	365	(n) The provisions of the electronic notice and document act shall not
366	366	apply to any mutual insurance company organized pursuant to article 12a
367	367	of chapter 40 of the Kansas Statutes Annotated, and amendments thereto.
368	368	(o) The provisions of this section shall not apply to the electronic
369	369	delivery of explanation of benefits and policies, including federally
370	370	required summary of benefit and coverage documents, to a party by a
371	371	health benefit plan.
372	372	Sec. 5. K.S.A. 40-5801, 40-5802, 40-5803 and 40-5804 are hereby
373	373	repealed.
374	374	Sec. 6. This act shall take effect and be in force from and after its
375	375	publication in the statute book.
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