A new law in Illinois adds that state to the number of states who have enacted laws or regulations allowing insurers to use electronic means to provide insurance notices and documents.
The Illinois law allows documents or notices required part of an insurance transaction or as evidence of insurance to be delivered, stored, and presented electronically, as long as they meet the requirements of the Electronic Commerce Security Act. The law does not change requirements regarding the timing and content of required notices and documents.
Under the act, electronic delivery of documents is considered as equivalent to any method authorized by law, provided that:
- The recipient has affirmatively consented to electronic delivery;
- The recipient has been informed of the right to withdraw consent at any time and have a notice or document delivered on paper;
- The recipient has been informed of the types of notices and documents the consent would apply to; and
- The recipient is informed of the hardware and software requirements for accessing documents, and confirms consent electronically in a manner that demonstrates the recipient can access information in electronic form.
Electronic postings or transmissions have to allow for verification or acknowledgement of receipt, and recipients must be informed of any changes to hardware or software to access or retain documents.
The law takes effect Jan. 1, 2016, and additional instructions are included for parties who consented to electrionc delivery before the effective date.
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