2023 New York Laws › BNK - Banking › Article 12-B - Insurance Premium Finance Agencies › 578-A - Electronic Notes and Documents.

§  578-a.  Electronic  notes  and  documents.  1. For purposes of this
section, the following words have the following meanings:
(a) "Delivered by electronic means" includes:
(i) delivery to an electronic  mail  address  at  which  a  party  has
consented to receive notices or documents; or
(ii)  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 such posting
which shall be provided by electronic mail to the address at which  such
party  has  consented  to  receive  notice  or  by  any other electronic
delivery method that has been consented to by such party.
(b) "Party" means any recipient of any notice or document required  as
part of a premium finance transaction, including, but not limited to, an
insured, insurance agent or broker, or insurer.
2.  Subject to the requirements of this section, any notice to a party
or any other document required under this article in a  premium  finance
transaction  or  that  is  to  serve  as  evidence  of a premium finance
agreement may be delivered, stored, and presented by electronic means so
long as it  meets  the  requirements  of  article  three  of  the  state
technology  law.  Where  this chapter requires that written notice to an
insured or any other document required under this article be  mailed  or
delivered to the insured at his address as shown in such premium finance
agreement  or  at  his last known address as shown on the records of the
premium finance agency, the notice may be delivered by electronic  means
to an electronic address not shown on such premium finance agreement.
3.  Delivery of any notice or document in accordance with this section
shall be considered equivalent to any mail or delivery  method  required
under this article.
4.  A  notice  or  document  may be delivered by electronic means by a
premium finance agency to a party under this section if:
(a) such party has affirmatively consented to such method of  delivery
and has not withdrawn such consent;
(b)  such  party,  before giving consent, is provided with a clear and
conspicuous statement informing such party of:
(i) the right of such party to withdraw, at any time, consent to  have
such  notice  or  document  be  delivered  by  electronic means, and any
conditions or consequences imposed in the event consent is withdrawn;
(ii) the types of notices and documents to which such party's  consent
would apply;
(iii)  the  right  of  such  party  to  have  such  notice or document
delivered in paper form; and
(iv) the procedures such party must follow to withdraw consent to have
such notice or document delivered by electronic means and to update such
party's electronic mail address;
(c) such party:
(i) before giving  consent,  is  provided  with  a  statement  of  the
hardware  and  software requirements for access to and retention of such
notice or document delivered by electronic means; and
(ii) consents electronically, or confirms consent electronically, in a
manner  that  reasonably  demonstrates  that  such  party   can   access
information  in  the  electronic  form  that will be used for notices or
documents delivered by electronic means as to which such party has given
consent; and
(d) after consent of such party is given, such premium finance agency,
in the event a change in the hardware or software requirements needed to
access or retain such notice or document delivered by  electronic  means
creates  a  material  risk that such party will not be able to access or
retain a subsequent notice or document to which such consent applies:
(i) provides such party with a statement that describes:
(A)  the  revised hardware and software requirements for access to and
retention of such notice or document delivered by electronic means; and
(B) the right of such party to withdraw consent without the imposition
on any condition or consequence that was not disclosed at  the  time  of
initial consent; and
(ii) complies with paragraph (b) of this subdivision.
5. (a) Before a notice or document is delivered by electronic means, a
premium  finance  agency  shall obtain a party's consent to deliver such
notice or document by electronic means. Such party's consent to  receive
one  type  of  notice  or  document  shall not be construed as a blanket
consent for every type  of  notice  and  document  to  be  delivered  by
electronic  means. Such party's consent shall only apply to the types of
notices  and  documents  identified  in  the   clean   and   conspicuous
information  statement  provided to the consenting party, as required by
subparagraph (ii) of paragraph (b) of subdivision four of this section.
(b) Any electronic mail being sent by a premium finance  agency  to  a
party in connection with the delivery of a notice of intent to cancel or
notice  of  cancellation  delivered by electronic means shall include in
the subject line and body of the  communication  clear  and  conspicuous
language  alerting  the  receiving  party  as  to  the importance of the
communication and the type of notice being delivered by electronic means
to such party.
6. This section does not affect requirements  related  to  content  or
timing of any notice or document required under this article.
7. The legal effectiveness, validity, or enforceability of any premium
finance  agreement  executed by a party may not be denied solely because
of the failure to obtain electronic consent or confirmation  of  consent
of  the  party  pursuant  to  subparagraph  (ii)  of  paragraph  (c)  of
subdivision four of this section.
8. (a) 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 such party before  such  withdrawal  of
consent is effective.
(b)  A  withdrawal  of  consent  by  a  party  is  effective  within a
reasonable period of time after receipt of such withdrawal by a  premium
finance agency.
(c)  Failure  by a premium finance agency to comply with paragraph (d)
of subdivision four and subdivision ten of this section may be  treated,
at the election of the party, as a withdrawal of consent for purposes of
this section.
9.  This section does not apply to a notice or document delivered by a
premium finance agency in an electronic form before the  effective  date
of  this  section  to  a  party  who, before such date, has consented to
receive a notice or document in an electronic form otherwise allowed  by
law.
10.  If the consent of a party to receive certain notices or documents
in an electronic form is on file with a premium  finance  agency  before
the  effective  date of this section, and pursuant to this section, such
premium  finance  agency  intends  to  deliver  additional  notices   or
documents  to such party in an electronic form, then prior to delivering
such  additional  notices  or  documents  electronically,  such  premium
finance agency shall:
(a) provide such party with a statement that describes:
(i)  such  notices  or documents that shall be delivered by electronic
means  under  this  section   that   were   not   previously   delivered
electronically; and
(ii)  such  party's  right  to  withdraw  consent  to  have notices or
documents delivered by electronic means, without the imposition  of  any
condition  or  consequence that was not disclosed at the time of initial
consent; and
(b) comply with paragraph (b) of subdivision four of this section.
11.  A  premium  finance  agency  shall  mail  or  deliver a notice or
document by any other delivery method permitted by  this  article  other
than electronic means if such premium finance agency:
(a)  attempts  to  deliver by electronic means such notice or document
and has a reasonable basis for believing that such  notice  or  document
has not been received by the party; or
(b)  becomes  aware  that the electronic mail address provided by such
party is no longer valid.
12. This section shall 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.