General Assembly Raised Bill No. 5262 proposes significant changes to the electronic notice requirements for property and casualty insurers, as well as updates to the State Insurance and Risk Management Board's reserve funding and the Office of Health Strategy's reporting obligations regarding prescription drug formularies. Key provisions allow insurers to post policies and endorsements on their websites instead of mailing them, provided that these documents do not contain personally identifiable information. Insurers must obtain the insured's consent for this method of delivery and ensure that the documents remain accessible throughout the policy duration. The bill also modifies existing laws by removing the requirement for mutual agreement for electronic delivery of notices, thus allowing electronic means to serve as sufficient proof of notice. Additionally, it mandates that insurers provide at least sixty days' notice before non-renewing a policy, specifying the reasons for non-renewal.

The bill further amends regulations concerning the renewal and cancellation of insurance policies, requiring insurers to send non-renewal notices to any third party designated by the insured, with written acceptance from the third party needed for the designation to be effective. It also stipulates that if a policy is to be renewed under less favorable terms, a conditional renewal notice must be provided, detailing any changes in coverage or increased deductibles. The bill clarifies cancellation notice requirements, allowing electronic delivery if agreed upon, and updates the responsibilities of the State Insurance and Risk Management Board regarding insurance procurement and reserve establishment. Additionally, it introduces regulations for health benefit plans, prohibiting health carriers from altering prescription drug formularies during a plan year, with certain exceptions, and repeals the requirement for annual studies on the impact of these regulations on health plan costs.

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