SB 226
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
Third Reader - Revised
Senate Bill 226 (Chair, Finance Committee)(By Request - Departmental -
Maryland Insurance Administration)
Finance Economic Matters
Maryland Insurance Administration - Delivery of Notices and Other
Communications by Electronic Means
This departmental bill authorizes the Maryland Insurance Administration (MIA) to send
and receive certain notices or other communications using electronic means.
Fiscal Summary
State Effect: MIA is likely to experience administrative efficiencies under the bill through
savings in postage, mailing costs, staff time, and expanded telework; however, any such
savings are not likely to materially affect MIA’s finances. Revenues are not affected.
Local Effect: The bill does not directly affect local governmental operations or finances.
Small Business Effect: MIA has determined that this bill has minimal or no impact on
small business (attached). The Department of Legislative Services concurs with this
assessment. (The attached assessment does not reflect amendments to the bill.)
Analysis
Bill Summary: MIA may send a notice or other communication using electronic means
if (1) the notice or other communication is required to be provided in writing; (2) the
recipient has provided an email address to MIA to receive notices or other communications;
(3) the notice or other communication is sent to that email address; and (4) MIA maintains
proof that the notice was sent to the recipient using that e-mail address. Any notice or other
communication sent as authorized by the bill is presumed to have been received in the
ordinary course, as specified in the Maryland Uniform Electronic Transactions Act
(MUETA).
The Insurance Commissioner may require a person who is licensed, certified, or otherwise
regulated by MIA to send a notice or other communication by electronic means, but may
not require a person who is not licensed, certified, or otherwise regulated by MIA to do so
(although they are authorized to do so).
The bill’s authorization for MIA to send and receive communications using electronic
means broadly applies to communications throughout the Insurance Article. The bill also
specifies that certain notices may be sent using electronic means, including (1) the
certificate of authority expiration notice MIA must send to an insurer and the corresponding
renewal application that must be sent to MIA by the insurer; (2) notices that MIA must
send to an insurer regarding premium tax payments; and (3) a notice that MIA must send
to an insurance advisor if their license is denied, suspended, or revoked.
Current Law: MUETA states that a record or signature may not be denied legal effect or
enforceability solely because it is in electronic form. The Act only applies to transactions
between parties which have agreed to conduct transactions by electronic means. Whether
the parties have consented to conduct transactions electronically is determined from the
context and surrounding circumstances, including the parties’ conduct. Except for a
separate and optional agreement, the primary purpose of which is to authorize a transaction
to be conducted by electronic means, a provision to conduct a transaction electronically
may not be contained in a standard form unless that provision is conspicuously displayed
and separately consented to.
Background: MIA sends and receives thousands of notices, regulatory documents, and
other communications each year and advises that the many of these communications must
be sent using antiquated mailing practices. Older laws generally require delivery using
first-class mail, certified mail, or first-class mail tracking, while newer laws generally allow
MIA to send communications using electronic means under MUETA. The bill authorizes
required communications to be sent by electronic means if appropriate. In doing so, MIA
is likely to experience administrative efficiencies and savings and may be able to enhance
its telework program due to fewer staff needed in the office to prepare and mail
correspondence.
Additional Information
Prior Introductions: None.
Designated Cross File: None.
SB 226/ Page 2
Information Source(s): Maryland Insurance Administration; Department of Legislative
Services
Fiscal Note History: First Reader - January 9, 2021
rh/jc Third Reader - March 11, 2021
Revised - Amendment(s) - March 11, 2021
Analysis by: Richard L. Duncan Direct Inquiries to:
(410) 946-5510
(301) 970-5510
SB 226/ Page 3
 ANALYSIS OF ECONOMIC IMPACT ON SMALL BUSINESSES
TITLE OF BILL: Maryland Insurance Administration – Delivery of Communications by
Electronic Means
BILL NUMBER: SB 226
PREPARED BY: Maryland Insurance Administration
PART A. ECONOMIC IMPACT RATING
This agency estimates that the proposed bill:
X WILL HAVE MINIMAL OR NO ECONOMIC IMPACT ON MARYLAND
SMALL BUSINESS
OR
WILL HAVE MEANINGFUL ECONOMIC IMPACT ON MARYLAND
SMALL BUSINESSES
PART B. ECONOMIC IMPACT ANALYSIS
There is no economic impact on small business associated with this proposal.
SB 226/ Page 4


Statutes affected:
Text - First - Maryland Insurance Administration - Delivery of Notices and Other Communications by Electronic Means: 8-509 Insurance, 27-704 Insurance, 2-116 Insurance, 2-204 Insurance, 4-112 Insurance, 6-109 Insurance, 6-113 Insurance, 8-423 Insurance, 8-509 Insurance, 9-225 Insurance, 10-121 Insurance, 10-213 Insurance, 13-116 Insurance, 27-704 Insurance, 27-703 Insurance
Text - Third - Maryland Insurance Administration - Delivery of Notices and Other Communications by Electronic Means: 8-509 Insurance, 27-704 Insurance, 2-116 Insurance, 2-204 Insurance, 4-112 Insurance, 6-109 Insurance, 6-113 Insurance, 8-423 Insurance, 8-509 Insurance, 9-225 Insurance, 10-121 Insurance, 10-213 Insurance, 13-116 Insurance, 27-704 Insurance, 27-703 Insurance