Reference is to Printer's Date 3/23/17-S.
Amend the bill, as and if amended, by inserting an appropriately numbered SECTION to read:
/ SECTION . Chapter 55, Title 38 of the 1976 Code is amended by adding:
Section 38-55-710. As
used in this article:
(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)
placement on an electronic network or site accessible by
means of the Internet, mobile application, computer, mobile
device, tablet, or another electronic device, together with
separate written notice of the placement which must be provided
by electronic mail to the address at which the party has
consented to receive notice or by another delivery method that
has been consented to by the party.
(2) 'Party' means a
recipient of a notice or document required as part of an
insurance transaction including, but not limited to, an
applicant, an insured, a policyholder, or an annuity contract
holder.
Section 38-55-720. (A)
Subject to the provisions of subsection (C),
notice to a party of another 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 if it meets the requirements of Chapter 6,
Title 26, the South Carolina Uniform Electronic Transactions
Act.
(B) Delivery of a
notice or document pursuant to this section must be considered
equivalent to the following delivery methods:
(1)
first class mail; and
(2)
first class mail, postage prepaid.
(C)(1) A notice or
document may be delivered by electronic means by an insurer to a
party if:
(a)
the party has affirmatively consented to that method of
delivery and has not withdrawn the consent;
(b)
the party, before giving consent, is provided with a clear
and conspicuous statement informing the party of:
(i)
the right or option of the party to have the notice or
document provided or made available in paper or another
nonelectronic form at no additional cost;
(ii)
the right of the party at any time to withdraw consent to
have a notice or document delivered by electronic means;
(iii)
the specific notice or document or categories of notices
or documents that may be delivered by electronic means during
the course of the relationship between the insurer and the
party;
(iv)
the means, after consent is given, by which a party may
obtain a paper copy of a notice or document delivered by
electronic means at no additional cost; and
(v)
the procedure a party must follow to withdraw consent to
have a notice or document delivered by electronic means and to
update information needed to contact the party electronically;
and
(c)
the transmission or delivery method used for the
electronic notice includes conspicuous language concerning its
subject or purpose;
(d)
the party:
(i)
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
(ii)
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 documents delivered by electronic
means as to which the party has given consent; and
(e)
after consent of the party is given, if a change occurs in
the hardware or software requirements needed to access or retain
a notice or document delivered by electronic means that creates
a material risk that the party will not be able to access or
retain a subsequent notice or document to which the consent
applies, the insurer shall:
(i)
provide the party with a statement of
the revised hardware and software requirements for access to and
retention of a notice or document delivered by electronic means;
and
(ii)
comply with the requirements of subsection (A).
(2)
No insurer may cancel, refuse to issue, or refuse to renew
a policy because the applicant or insured refuses to agree to
receive mailings electronically pursuant to this subsection.
(D) This section does
not affect requirements related to content or timing of any
notice or document required under applicable law.
(E) If a provision of
this title or applicable law requiring a notice or document to
be provided to a party expressly requires verification or
acknowledgment of receipt of the notice or document, the notice
or document may be delivered by electronic means only if the
method used provides for verification or acknowledgment of
receipt.
(F) The legal
effectiveness, validity, or enforceability of the underlying
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 pursuant to
subsection (C)(1)(d)(ii).
(G) A withdrawal of
consent by a party:
(1)
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; and
(2)
is effective four business days after receipt of the
withdrawal by the insurer.
(H) Failure by an
insurer to comply with subsection (C)(1)(e) may be treated, at
the election of the party, as a withdrawal of consent 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, had consented to receive notice or
document in an electronic form otherwise allowed by law.
(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
deliver additional notices or documents to such party in an
electronic form, then prior to delivering such additional
notices or documents electronically, the insurer shall notify
the party of:
(1)
the notices or documents that may be delivered by
electronic means under this section that were not previously
delivered electronically; and
(2)
the party's right to withdraw at any time consent to have
notices or documents delivered by electronic means.
(K) If a provision of
this title or applicable law requires a signature, notice, or
document to be notarized, acknowledged, verified, or made under
oath, the requirement is satisfied if the electronic signature
of the person authorized to perform those acts, together with
all other information required to be included by the provision,
is attached to or logically associated with the signature,
notice or document.
(L) 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. It is intended to
provide an insurer additional options for the delivery of
electronic notices and documents. An insurer choosing to use
procedures outlined in ESIGN, UETA, or other applicable law or
regulation governing such notice or documents must be considered
to be in compliance with this section.
(M) An insurer
delivering a notice or document by electronic means shall take
appropriate and necessary measures reasonably calculated to
ensure that the system for furnishing the notices of documents
is secure and protects the confidentiality of information as
defined by applicable law. An insurer who is in compliance with
the Health Insurance Portability and Accountability Act, 45
C.F.R. 164.512(b) or the Gramm Leach Bliley Act, 16 C.F.R.
314.1, must be considered to be in compliance with this section.
(N) The director or his
designee may promulgate by bulletin, regulation or order the
requirements necessary to implement the provisions of this
section." /
Renumber sections to conform.
Amend title to conform.