N.Y. BNK Law § 578-A — New York Code / Act BNK / Article 12-B / Section 578-A
Electronic notes and documents
Status: in_force

§ 578-a. Electronic notes and documents. 1. For purposes of this\nsection, the following words have the following meanings:\n  (a) "Delivered by electronic means" includes:\n  (i) delivery to an electronic mail address at which a party has\nconsented to receive notices or documents; or\n  (ii) posting on an electronic network or site accessible via the\ninternet, mobile application, computer, mobile device, tablet, or any\nother electronic device, together with separate notice of such posting\nwhich shall be provided by electronic mail to the address at which such\nparty has consented to receive notice or by any other electronic\ndelivery method that has been consented to by such party.\n  (b) "Party" means any recipient of any notice or document required as\npart of a premium finance transaction, including, but not limited to, an\ninsured, insurance agent or broker, or insurer.\n  2. Subject to the requirements of this section, any notice to a party\nor any other document required under this article in a premium finance\ntransaction or that is to serve as evidence of a premium finance\nagreement may be delivered, stored, and presented by electronic means so\nlong as it meets the requirements of article three of the state\ntechnology law. Where this chapter requires that written notice to an\ninsured or any other document required under this article be mailed or\ndelivered to the insured at his address as shown in such premium finance\nagreement or at his last known address as shown on the records of the\npremium finance agency, the notice may be delivered by electronic means\nto an electronic address not shown on such premium finance agreement.\n  3. Delivery of any notice or document in accordance with this section\nshall be considered equivalent to any mail or delivery method required\nunder this article.\n  4. A notice or document may be delivered by electronic means by a\npremium finance agency to a party under this section if:\n  (a) such party has affirmatively consented to such method of delivery\nand has not withdrawn such consent;\n  (b) such party, before giving consent, is provided with a clear and\nconspicuous statement informing such party of:\n  (i) the right of such party to withdraw, at any time, consent to have\nsuch notice or document be delivered by electronic means, and any\nconditions or consequences imposed in the event consent is withdrawn;\n  (ii) the types of notices and documents to which such party's consent\nwould apply;\n  (iii) the right of such party to have such notice or document\ndelivered in paper form; and\n  (iv) the procedures such party must follow to withdraw consent to have\nsuch notice or document delivered by electronic means and to update such\nparty's electronic mail address;\n  (c) such party:\n  (i) before giving consent, is provided with a statement of the\nhardware and software requirements for access to and retention of such\nnotice or document delivered by electronic means; and\n  (ii) consents electronically, or confirms consent electronically, in a\nmanner that reasonably demonstrates that such party can access\ninformation in the electronic form that will be used for notices or\ndocuments delivered by electronic means as to which such party has given\nconsent; and\n  (d) after consent of such party is given, such premium finance agency,\nin the event a change in the hardware or software requirements needed to\naccess or retain such notice or document delivered by electronic means\ncreates a material risk that such party will not be able to access or\nretain a subsequent notice or document to which such consent applies:\n  (i) provides such party with a statement that describes:\n  (A) the revised hardware and software requirements for access to and\nretention of such notice or document delivered by electronic means; and\n  (B) the right of such party to withdraw consent without the imposition\non any condition or consequence that was not disclosed at the time of\ninitial consent; and\n  (ii) complies with paragraph (b) of this subdivision.\n  5. (a) Before a notice or document is delivered by electronic means, a\npremium finance agency shall obtain a party's consent to deliver such\nnotice or document by electronic means. Such party's consent to receive\none type of notice or document shall not be construed as a blanket\nconsent for every type of notice and document to be delivered by\nelectronic means. Such party's consent shall only apply to the types of\nnotices and documents identified in the clean and conspicuous\ninformation statement provided to the consenting party, as required by\nsubparagraph (ii) of paragraph (b) of subdivision four of this section.\n  (b) Any electronic mail being sent by a premium finance agency to a\nparty in connection with the delivery of a notice of intent to cancel or\nnotice of cancellation delivered by electronic means shall include in\nthe subject line and body of the communication clear and conspicuous\nlanguage alerting the receiving party as to the importance of the\ncommunication and the type of notice being delivered by electronic means\nto such party.\n  6. This section does not affect requirements related to content or\ntiming of any notice or document required under this article.\n  7. The legal effectiveness, validity, or enforceability of any premium\nfinance agreement executed by a party may not be denied solely because\nof the failure to obtain electronic consent or confirmation of consent\nof the party pursuant to subparagraph (ii) of paragraph (c) of\nsubdivision four of this section.\n  8. (a) A withdrawal of consent by a party does not affect the legal\neffectiveness, validity, or enforceability of a notice or document\ndelivered by electronic means to such party before such withdrawal of\nconsent is effective.\n  (b) A withdrawal of consent by a party is effective within a\nreasonable period of time after receipt of such withdrawal by a premium\nfinance agency.\n  (c) Failure by a premium finance agency to comply with paragraph (d)\nof subdivision four and subdivision ten of this section may be treated,\nat the election of the party, as a withdrawal of consent for purposes of\nthis section.\n  9. This section does not apply to a notice or document delivered by a\npremium finance agency in an electronic form before the effective date\nof this section to a party who, before such date, has consented to\nreceive a notice or document in an electronic form otherwise allowed by\nlaw.\n  10. If the consent of a party to receive certain notices or documents\nin an electronic form is on file with a premium finance agency before\nthe effective date of this section, and pursuant to this section, such\npremium finance agency intends to deliver additional notices or\ndocuments to such party in an electronic form, then prior to delivering\nsuch additional notices or documents electronically, such premium\nfinance agency shall:\n  (a) provide such party with a statement that describes:\n  (i) such notices or documents that shall be delivered by electronic\nmeans under this section that were not previously delivered\nelectronically; and\n  (ii) such party's right to withdraw consent to have notices or\ndocuments delivered by electronic means, without the imposition of any\ncondition or consequence that was not disclosed at the time of initial\nconsent; and\n  (b) comply with paragraph (b) of subdivision four of this section.\n  11. A premium finance agency shall mail or deliver a notice or\ndocument by any other delivery method permitted by this article other\nthan electronic means if such premium finance agency:\n  (a) attempts to deliver by electronic means such notice or document\nand has a reasonable basis for believing that such notice or document\nhas not been received by the party; or\n  (b) becomes aware that the electronic mail address provided by such\nparty is no longer valid.\n  12. This section shall not be construed to modify, limit, or supersede\nthe provisions of the federal Electronic Signatures in Global and\nNational Commerce Act, Public Law 106-229, as amended.\n