The Department found that the great majority of New York insurance law does not pose any impediment to the conduct of electronic commerce. Statutes that set forth format and delivery requirements for documents present no barriers to electronic commerce. Formatting requirements prescribed by statute, including pagination, type size, print color or that certain language be conspicuous or placed in a certain location within a document may be met electronically provided that the sender and recipient of the document utilize a technology that ensures the creation, transmission, and receipt of a document equivalent to that prescribed by statutory formatting requirements. In addition, delivery requirements found in the insurance law can be satisfied using electronic delivery. Advertising and Disclosure Promulgating advertising and disclosure requirements for an electronic format is also important.
Web sites constitute both formidable and desirable channels for company advertising.
The content of these sites as well as any documents executed online must comply with existing statutory and regulatory schemes. The supervisory oversight and consumer protections applicable to an electronic environment cannot be less effective than those that govern traditional, paper-based transactions. In addition, electronic disclosures must conform to existing disclosure formats, timing and retention rules. They must be clear and, if required by law, disclosure must be given before the consumer becomes contractually obligated. Electronic information will also have to be provided in a way that allows the consumer printing or downloading capabilities.