Oklahoma 2024 Regular Session

Oklahoma House Bill HB1505 Compare Versions

Version 1 (Old)

Version 2 (New)

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1		-	An Act
2		-	ENROLLED HOUSE
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	30	+	March 26, 2024
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	33	+	ENGROSSED HOUSE
3	34		BILL NO. 1505 By: Sneed and Deck of the House
4	35
5	36		and
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7	38		Paxton of the Senate
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12		-
13		-
14		-	An Act relating to insurance; amending 36 O.S. 2021,
15		-	Section 123, which relates to delivery an d storage of
	43	+	An Act relating to insurance; 36 O.S. 2021, Section
	44	+	123, which relates to delivery and storage of
16	45		electronic documents; permitting insurers to post
17	46		certain policies or endorsements; providing
18	47		requirements; and providing an effective date.
19	48
20	49
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22		-	SUBJECT: Insurance
23		-
24	51		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
25		-
26	52		SECTION 1. AMENDATORY 36 O.S. 2021, Section 123, is
27	53		amended to read as follows:
28		-
29	54		Section 123. A. In this section, the following words shall
30	55		have the following meanings:
31		-
32	56		1. "Delivered by electronic means" includes:
33		-
34	57		a. delivery to an electronic mail address at which a
35	58		party has consented to receive notices or documents,
36	59		or
37		-
38	60		b. posting on an electronic network or site accessible
39	61		via the Internet, mobile application, computer, mobile
40	62		device, tablet or any other electronic device,
41	63		together with separate notice of the posting which
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42	91		shall be provided by electronic m ail to the address at
43	92		which the party has consented to receive notice, or by
44	93		any other delivery method that has been consented to
45	94		by the party.
46		-	ENR. H. B. NO. 1505 Page 2
47	95		2. "Party" means any recipient of any notice or document
48	96		required as part of an insurance transaction, includin g but not
49	97		limited to an applicant, an insured, a policyholder or an annuity
50	98		contract holder.
51		-
52	99		B. Subject to the requir ements of this section, any notice to a
53	100		party or any other document required under applicable law in an
54	101		insurance transaction, or that is to serve as evidence of insurance
55	102		coverage, may be delivered, stored and presented by electronic
56	103		means, so long as it meets the requirements of the Uniform
57	104		Electronic Transactions Act pursuant to Section 15 -101, et seq. of
58	105		Title 12A of the Oklahoma Statute s.
59		-
60	106		C. Delivery of a notice or document in accordance with this
61	107		section shall be considered equivalent to any delivery method
62	108		required under applicable law, including delivery by first class
63	109		mail; first class mail, postage prepaid; certified mail; certific ate
64	110		of mail; or certificate of mailing.
65		-
66	111		D. A notice or document may be delivered by electronic means by
67	112		an insurer to a party under this section if:
68		-
69	113		1. The party has affirmatively consented to that method of
70	114		delivery and has not withdrawn the consent; or
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72	142		2. The party, before giving consent, is provided with a clear
73	143		and conspicuous statement informing the party of:
74		-
75	144		a. the right of the party to withdraw consent to have a
76	145		notice or document delivered by electronic means, at
77	146		any time, and any conditions or c onsequences imposed
78	147		in the event consent is withdrawn,
79		-
80	148		b. the types of notices and documents to which the
81	149		party's consent would apply,
82		-
83	150		c. the right of a party to have a notice or document
84	151		delivered in paper form, and
85		-
86	152		d. the procedures a party must follow t o withdraw consent
87	153		to have a notice or document delivered by electronic
88	154		means and to update the party's electronic mai l
89	155		address;
90		-
91		-	3. The party: ENR. H. B. NO. 1505 Page 3
92		-
	156	+	3. The party:
93	157		a. before giving consent, is provided with a statement of
94	158		the hardware and software requirements for access to
95	159		and retention of a notice or document delivered by
96	160		electronic means, and
97		-
98	161		b. consents electronically, or confirms consent
99	162		electronically, in a manner that reasonably
100	163		demonstrates that the party can access information in
101	164		the electronic form that will be used for notices or
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102	192		documents delivered by electronic means as to which
103	193		the party has given consent;
104		-
105	194		4. The insurer takes measures reasonably calculated to ensure
106	195		that delivery by electronic means results in receipt of the notice
107	196		or document by the party; and
108		-
109	197		5. After consent of the party is given, the insurer, in the
110	198		event a change in the hardware or software requirements needed to
111	199		access or retain a notice or document delivered by electronic means
112	200		creates a material risk that the party will not be able to ac cess or
113	201		retain a subsequent notice or document to which the consent applies:
114		-
115	202		a. provides the party with a statement th at describes:
116		-
117	203		(1) the revised hardware and software requirements
118	204		for access to and retention of a notice or
119	205		document delivered by electron ic means, and
120		-
121	206		(2) the right of the party to withdraw consent
122	207		without the imposition of any condition or
123	208		consequence that was not disclosed at the time of
124	209		initial consent, and
125		-
126	210		b. complies with paragraph 2 of this subsection.
127		-
128	211		E. This section does not affect requirements related to content
129	212		or timing of any notice or document required under applicable law.
130		-
131	213		F. If a provision of this title or applicable law requiring a
132	214		notice or document to be provided to a party expressly requires
133	215		verification or acknowledgmen t of receipt of the notice or document,
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134	243		the notice or document may be delivered by electronic means only if
135	244		the method used provides for verification or acknowledgment of
136		-	receipt. ENR. H. B. NO. 1505 Page 4
137		-
	245	+	receipt.
138	246		G. The legal effectiveness, validity or enforceability of any
139	247		contract or policy of insurance executed by a party may not be
140	248		denied solely because of the failure to obtain electronic consent or
141	249		confirmation of consent of the party in accordance with subparagraph
142	250		b of paragraph 3 of subsection D of this section.
143		-
144	251		H. 1. A withdrawal of consent by a party does not affect the
145	252		legal effectiveness, validity or enforceability of a notice or
146	253		document delivered by electronic means to the party before the
147	254		withdrawal of consent is effective.
148		-
149	255		2. A withdrawal of consent by a party is effecti ve within a
150	256		reasonable period of time after receipt of the withdrawal by the
151	257		insurer.
152		-
153	258		3. Failure by an insurer to com ply with paragraph 5 of
154	259		subsection D and subsection J of this section may be treated, at the
155	260		election of the party, as a withdrawal of con sent for purposes of
156	261		this section.
157		-
158	262		I. This section does not apply to a notice or document
159	263		delivered by an insurer in an electronic form before the effective
160	264		date of this act to a party who, before that date, has consented to
161	265		receive notice or document in an electronic form otherwise allowed
162	266		by law.
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163	293
164	294		J. If the consent of a party to receive certain notices or
165	295		documents in an electronic form is on file with an insurer before
166	296		the effective date of this act, and pursuant to this section, an
167	297		insurer intends to d eliver additional notices or documents to such
168	298		party in an electronic form, then prior to delivering such
169	299		additional notices or documents electronically, the insurer shall:
170		-
171	300		1. Provide the party with a statement that describes:
172		-
173	301		a. the notices or documents that shall be delivered by
174	302		electronic means under this section that were not
175	303		previously delivered electronically, and
176		-
177	304		b. the party's right to withdraw consent to have notices
178	305		or documents delivered by electronic means, without
179	306		the imposition of any conditi on or consequence that
180	307		was not disclosed at the time of initial consent ; and
181		-	ENR. H. B. NO. 1505 Page 5
182	308		2. Comply with paragraph 2 of subsection D of this section.
183		-
184	309		K. An insurer shall deliver a notice or document by any other
185	310		delivery method permitted by law other than electronic means if:
186		-
187	311		1. The insurer attempts to deliver the notice or document by
188	312		electronic means and has a reasonable basis fo r believing that the
189	313		notice or document has not been received by the party; or
190		-
191	314		2. The insurer becomes aware that the electronic mail addr ess
192	315		provided by the party is no longer valid.
	316	+	L. Notwithstanding subsection A or any other law or regulation
	317	+	of this state requiring an insurer to provide, send, or deliver an
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194		-	L. Notwithstanding subsection A of this section or any other
195		-	law or regulation of this state requiring an insurer to p rovide,
196		-	send, or deliver an insurance policy or endorsemen t to an insured,
197		-	an insurer may elect to post a policy or endorsement that does not
198		-	contain personally identifiable information on it s website provided
199		-	it complies with all of the following:
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	345	+	insurance policy or endorsement to an insured, an insurer may elect
	346	+	to post a policy or endorsement that does not contain personally
	347	+	identifiable information on its website provided it complies wit h
	348	+	all of the following:
201	349		1. The policy or endorsement is easily accessible on the
202	350		website so long as it is in force;
203		-
204	351		2. The policy or end orsement is posted in a manner that enables
205	352		the insured to print and save it using programs or applications
206	353		widely available on the Internet and free of charge to use;
207		-
208	354		3. The insurer provides notice, in the manner it normally
209	355		communicates with the insured at the time of issuance or renewal of
210	356		the policy or endorsement, or at the time of any changes to the
211	357		policy or endorsement, of a method by which the insured may obtain,
212	358		upon request and without charge, at the choice of the insured, a
213	359		paper or electronic copy of the policy or endorsement, or any
214	360		changes to them, and the Internet address where the policy and
215	361		endorsement are posted;
216		-
217	362		4. The insurer provides all of the following information on
218	363		each declarations page, or similar document as appropriate to the
219	364		line of coverage, provided to the insured at the time of issuance or
220	365		renewal:
221		-
222	366		a. a description of the exact policy and endorsement
223	367		forms purchased by the insured,
224		-	ENR. H. B. NO. 1505 Page 6
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225	395		b. a method by which the insured may obtain, upon request
226	396		and without charge, a paper or elec tronic copy of the
227	397		policy or endorsement, or any changes to them,
228		-
229	398		c. the Internet address where the policy and endorsement
230	399		are posted; and
231		-
232	400		5. After expiration of the policy or endorsement, the insurer
233	401		archives the expired policies or endorsements in accor dance with the
234	402		Oklahoma Insurance Department's general record retention
235	403		requirements and makes them available upon req uest.
236		-
237	404		M. A producer shall not be subject to civil liability for any
238	405		harm or injury that occurs as a result of a party's election to
239	406		receive any notice or document by electronic means or by an
240	407		insurer's failure to deliver a notice or document by electronic
241	408		means.
242		-
243	409		M. N. This section may not be construed to modify, limit or
244	410		supersede the provisions of the federal Electronic Signatures in
245	411		Global and National Commerce Act, Public Law 106 -229, as amended.
246		-
247	412		SECTION 2. This act shall become effect ive November 1, 2024.
248		-	ENR. H. B. NO. 1505 Page 7
249		-	Passed the House of Representatives the 12th day of March, 2024.
250		-
251		-
252		-
253		-
254		-	Presiding Officer of the House
255		-	of Representatives
256		-
257		-
258		-
259		-	Passed the Senate the 10th day of April, 2024.
260		-
261		-
262		-
263		-
264		-	Presiding Officer of the Senate
265		-
266		-
267		-	OFFICE OF THE GOVERNOR
268		-	Received by the Office of the Governor this ____________________
269		-	day of ___________________, 20_____ __, at _______ o'clock _______ M.
270		-	By: _________________________________
271		-	Approved by the Governor of the State of Oklahoma this _____ ____
272		-	day of ___________________, 20_______, at _______ o'clock _______ M.
273		-
274		-
275		-	_________________________________
276		-	Governor of the State of Oklahoma
277		-
278		-	OFFICE OF THE SECRETARY OF STATE
279		-	Received by the Office of the Secretary of State this __________
280		-	day of ___________________, 20_______, at _______ o'clock _______ M.
281		-	By: _________________________________
282		-
	413	+	COMMITTEE REPORT BY: COMMITTEE ON RETIREMENT AND INSURANCE
	414	+	March 26, 2024 - DO PASS