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SENATE FLOOR VERSION
March 26, 2024
ENGROSSED HOUSE
BILL NO. 1505 By: Sneed and Deck of the House
and
Paxton of the Senate
An Act relating to insurance; 36 O.S. 2021, Section
123, which relates to delivery and storage of
electronic documents; permitting insurers to post
certain policies or endorsements; providing
requirements; and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 36 O.S. 2021, Section 123, is
amended to read as follows:
Section 123. A. In this section, the following words shall
have the following meanings:
1. "Delivered by electronic means" includes:
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 of the posting which
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shall be provided by electronic m ail to the address at
which the party has consented to receive notice, or by
any other delivery method that has been consented to
by the party.
2. "Party" means any recipient of any notice or document
required as part of an insurance transaction, includin g but not
limited to an applicant, an insured, a policyholder or an annuity
contract holder.
B. Subject to the requir ements of this section, 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, so long as it meets the requirements of the Uniform
Electronic Transactions Act pursuant to Section 15 -101, et seq. of
Title 12A of the Oklahoma Statute s.
C. Delivery of a notice or document in accordance with this
section shall be considered equivalent to any delivery method
required under applicable law, including delivery by first class
mail; first class mail, postage prepaid; certified mail; certific ate
of mail; or certificate of mailing.
D. A notice or document may be delivered by electronic means by
an insurer to a party under this section if:
1. The party has affirmatively consented to that method of
delivery and has not withdrawn the consent; or
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2. The party, before giving consent, is provided with a clear
and conspicuous statement informing the party of:
a. the right of the party to withdraw consent to have a
notice or document delivered by electronic means, at
any time, and any conditions or c onsequences imposed
in the event consent is withdrawn,
b. the types of notices and documents to which the
party's consent would apply,
c. the right of a party to have a notice or document
delivered in paper form, and
d. the procedures a party must follow t o withdraw consent
to have a notice or document delivered by electronic
means and to update the party's electronic mai l
address;
3. The party:
a. before giving consent, 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, and
b. consents electronically, or confirms consent
electronically, in a manner that reasonably
demonstrates that the party can access information in
the electronic form that will be used for notices or
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documents delivered by electronic means as to which
the party has given consent;
4. The insurer takes measures reasonably calculated to ensure
that delivery by electronic means results in receipt of the notice
or document by the party; and
5. After consent of the party is given, 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 ac cess or
retain a subsequent notice or document to which the consent applies:
a. provides the party with a statement th at describes:
(1) the revised hardware and software requirements
for access to and retention of a notice or
document delivered by electron ic means, and
(2) the right of the party to withdraw consent
without the imposition of any condition or
consequence that was not disclosed at the time of
initial consent, and
b. complies with paragraph 2 of this subsection.
E. This section does not affect requirements related to content
or timing of any notice or document required under applicable law.
F. If a provision of this title or applicable law requiring a
notice or document to be provided to a party expressly requires
verification or acknowledgmen t of receipt of the notice or document,
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the notice or document may be delivered by electronic means only if
the method used provides for verification or acknowledgment of
receipt.
G. 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 subparagraph
b of paragraph 3 of subsection D of this section.
H. 1. 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.
2. A withdrawal of consent by a party is effecti ve within a
reasonable period of time after receipt of the withdrawal by the
insurer.
3. Failure by an insurer to com ply with paragraph 5 of
subsection D and subsection J of this section may be treated, at the
election of the party, as a withdrawal of con sent for purposes of
this section.
I. This section does 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, has consented to
receive notice or document in an electronic form otherwise allowed
by law.
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J. 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 section, an
insurer intends to d eliver additional notices or documents to such
party in an electronic form, then prior to delivering such
additional notices or documents electronically, the insurer shall:
1. Provide the party with a statement that describes:
a. the notices or documents that shall be delivered by
electronic means under this section that were not
previously delivered electronically, and
b. the party's right to withdraw consent to have notices
or documents delivered by electronic means, without
the imposition of any conditi on or consequence that
was not disclosed at the time of initial consent ; and
2. Comply with paragraph 2 of subsection D of this section.
K. An insurer shall deliver a notice or document by any other
delivery method permitted by law other than electronic means if:
1. The insurer attempts to deliver the notice or document by
electronic means and has a reasonable basis fo r believing that the
notice or document has not been received by the party; or
2. The insurer becomes aware that the electronic mail addr ess
provided by the party is no longer valid.
L. Notwithstanding subsection A or any other law or regulation
of this state requiring an insurer to provide, send, or deliver an
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insurance policy or endorsement to an insured, an insurer may elect
to post a policy or endorsement that does not contain personally
identifiable information on its website provided it complies wit h
all of the following:
1. The policy or endorsement is easily accessible on the
website so long as it is in force;
2. The policy or end orsement is posted in a manner that enables
the insured to print and save it using programs or applications
widely available on the Internet and free of charge to use;
3. The insurer provides notice, in the manner it normally
communicates with the insured at the time of issuance or renewal of
the policy or endorsement, or at the time of any changes to the
policy or endorsement, of a method by which the insured may obtain,
upon request and without charge, at the choice of the insured, a
paper or electronic copy of the policy or endorsement, or any
changes to them, and the Internet address where the policy and
endorsement are posted;
4. The insurer provides all of the following information on
each declarations page, or similar document as appropriate to the
line of coverage, provided to the insured at the time of issuance or
renewal:
a. a description of the exact policy and endorsement
forms purchased by the insured,
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b. a method by which the insured may obtain, upon request
and without charge, a paper or elec tronic copy of the
policy or endorsement, or any changes to them,
c. the Internet address where the policy and endorsement
are posted; and
5. After expiration of the policy or endorsement, the insurer
archives the expired policies or endorsements in accor dance with the
Oklahoma Insurance Department's general record retention
requirements and makes them available upon req uest.
M. A producer shall not be subject to civil liability for any
harm or injury that occurs as a result of a party's election to
receive any notice or document by electronic means or by an
insurer's failure to deliver a notice or document by electronic
means.
M. N. This section may not be construed to modify, limit or
supersede the provisions of the federal Electronic Signatures in
Global and National Commerce Act, Public Law 106 -229, as amended.
SECTION 2. This act shall become effect ive November 1, 2024.
COMMITTEE REPORT BY: COMMITTEE ON RETIREMENT AND INSURANCE
March 26, 2024 - DO PASS