BILL NUMBER: S5130
SPONSOR: COMRIE
 
TITLE OF BILL:
An act to amend the insurance law, in relation to requiring health and
motor vehicle insurance policies to notify policyholders of cancella-
tion, discontinuance or major changes to their policy via email and to
offer paperless notification upon the issuance of such policies
 
PURPOSE:
To allow for email notifications of changes or discontinuances of health
and motor vehicle insurance policies.
 
SUMMARY OF PROVISIONS:
Section 1: Amends Section 3216 of insurance law to direct cancellation
of policies be notified by email if the insured's email address is on
file.
Section 2: Amends Section 3216 of insurance law to allow for a paperless
notification opt-in program
Section 3: Amends Section 3216 of insurance law to direct notice of
major policy changes be sent by email if the insured's email address is
on file
Section 4: Amends Section 3216 of insurance law to direct discontinuance
of policies be notified by email if the insured's email address is on
file
Section 5: Amends Section 3211 of insurance law to direct discontinuance
of policies be notified by email if the insured's email address is on
file
Section 6: Amends Section 3211 of insurance law to direct notice of
major policy changes be sent by email if the insured's email address is
on file
Section 7: Amends Section'3211 of insurance law to direct discontinuance
of policies be notified by email if the insured's email address is on
file
Section 8: Amends Section 3211 of insurance law to direct discontinuance
of policies be notified by email if the insured's email address is on
file
Section 9: Amends Section 3211 of insurance law to allow for a paperless
notification opt-in program.
Section 10: Amends Section 3425 of insurance law to direct cancellation,
changes, or notices related to automobile insurance to be notified by
email if the insured email address is on file
Section 11: Amends Section 4304 of insurance law to direct notice
discontinuance of a class of contract by email if the insured's email
address is on file
Section 12: Amends Section 4305 of insurance law to direct notice of
discontinuance of a class of contract by email if the insured's email
address is on file
Section 13: Sets the effective date
 
JUSTIFICATION:
As we move towards an increasingly digital system, physical paperwork
often works to the disadvantage of many consumers. Giving consumers the
option to go paperless for their insurance paperwork is cost efficient,
environmentally friendly and more secure. Additionally, this bill would
require notices of changes in policy and dropped coverage to be sent by
email if the insured's email address is on file. This lowers the likeli-
hood of the consumer disregarding or displacing important information
and notices.
 
LEGISLATIVE HISTORY:
2024: S5545
2022: S4191
 
FISCAL IMPLICATIONS:
None to the state.
 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to all policies
or contracts issued, renewed, modified, altered or amended on and after
such effective date.

Statutes affected:
S5130: 3216 insurance law, 3216(d) insurance law, 3216(c) insurance law, 3216(g) insurance law, 3221 insurance law, 3221(a) insurance law, 3221(p) insurance law, 3425 insurance law, 3425(h) insurance law