PRINTER'S NO. 1707
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
1253
Session of
2024
INTRODUCED BY DiSANTO, STREET, FONTANA, BREWSTER AND VOGEL,
JUNE 7, 2024
REFERRED TO BANKING AND INSURANCE, JUNE 7, 2024
AN ACT
Amending Title 40 (Insurance) of the Pennsylvania Consolidated
Statutes, providing for electronic notice of insurance
practices.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 40 of the Pennsylvania Consolidated
Statutes is amended by adding a chapter to read:
CHAPTER 47
ELECTRONIC NOTICE OF INSURANCE PRACTICES
Sec.
4701. Scope and construction of chapter.
4702. Definitions.
4703. Electronic delivery of insurance notices or documents.
4704. Changes in hardware or software requirements.
4705. Affect, validity and enforceability of insurance notices
or documents.
4706. Withdrawal of consent.
4707. Prior consent for electronic delivery of insurance
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notices or documents.
4708. Alternative methods of delivery.
4709. Limitation on civil liability.
4710. Delivery of insurance policies and endorsements.
§ 4701. Scope and construction of chapter.
This chapter relates to electronic notice of insurance
practices and shall not be construed as imposing requirements on
health benefit plans subject to ERISA .
§ 4702. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Covered person." An individual who is entitled to receive
health care services under a health benefit plan.
"Deliver by electronic means." Any of the following:
(1) The delivery to an email address at which a covered
person has consented to receive a notice or document from an
insurer.
(2) A post on an electronic network or website
accessible via the Internet, mobile device or application,
tablet or any other electronic device, including a separate
notice of the post by delivery to an email address at which a
covered person has consented to receive a notice or document
or by any other delivery method that has been consented by
the covered person , which contains the Internet address at
which the notice or document is posted. For purposes of this
definition, delivery shall be effective upon the post or
actual delivery of the separate notice of the post as
specified under this paragraph.
"ERISA." Employee Retirement Income Security Act of 1974
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(Public Law 93-406, 88 Stat. 829).
"Health benefit plan." A policy, contract, certificate or
agreement entered into, offered by or issued by an insurer to
provide, deliver or arrange for, pay for or reimburse any of the
costs of health care services, including a vision or dental
benefit plan or a self-insured plan not subject to ERISA.
" Insurer." An insurance company, association or exchange or
any other entity subject to the jurisdiction of the department.
"Plan sponsor." A person or entity that establishes, adopts
or maintains a health benefit plan on behalf of a covered
person .
§ 4703. Electronic delivery of insurance notices or documents.
(a) Transactions.--Subject to the requirements of this
section, an insurer may deliver by electronic means a notice to
a covered person required by Federal or State law in a
transaction with the insurer or in a manner that serves as
evidence of insurance coverage in accordance with the act of
December 16, 1999 (P.L.971, No.69), known as the Electronic
Transactions Act.
(b) Effect of delivery.--The delivery of a notice or
document in accordance with this section shall be considered the
equivalent to and having the same effect as a delivery method
required by Federal or State law, including delivery by first
class mail, first class mail with postage prepaid, certified
mail, certificate of mail or certificate mailing.
(c) Consent from covered persons .--An insurer may deliver by
electronic means a notice or document to a covered person in
accordance with this section if all of the following apply:
(1) The covered person has affirmatively consented
electronically or confirmed consent electronically in a
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manner that reasonably demonstrates that the covered person
can access information in the electronic form that will be
used for a notice or document delivered by electronic means,
and the covered person has not withdrawn the consent.
(2) Before the covered person gives the consent required
under paragraph (1), the insurer provides the covered person
with a clear and conspicuous statement informing the covered
person of all of the following:
(i) The hardware and software requirements for
access to and retention of a notice or document delivered
by electronic means.
(ii) The types of notices and documents for which
the covered person may consent to receive by delivery by
electronic means.
(iii) The right of the covered person to withdraw
consent to having a notice or document delivered by
electronic means at any time and the conditions or
consequences imposed in the event consent is withdrawn.
(iv) The procedures necessary for the covered person
to withdraw consent to having a notice or document
delivered by electronic means, which shall be no more
burdensome than the procedures required to provide
consent under paragraph (1), and the manner in which the
covered person can update the covered person's email
address for the purposes of this subsection.
(v) The right of a covered person to have a notice
or document delivered by the insurer upon request in
paper form.
(vi) The right of a covered person to request that
personal health information be treated and communicated
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confidentially and the process by which a covered person
may receive the confidential communication of personal
health information delivered by electronic means.
(d) Consent from plan sponsors.--A plan sponsor may, on
behalf of each covered person, provide consent to the delivery
by electronic means of communications related to the plan from
an insurer.
(e) Duties of plan sponsors.--Before consenting on behalf of
a covered person under subsection (d), a plan sponsor shall have
the following duties:
(1) To the extent applicable, confirm that the covered
person routinely uses electronic communications during the
normal course of employment and is able to access and retain
electronic communications that may be delivered by an insurer
to a personal email address used by a covered person.
(2) Inform the covered person that the consent will be
provided and a notice or document related to the health
benefit plan may be delivered by electronic means unless the
covered person affirmatively opts out of delivery by
electronic means or provides an alternative email address.
(f) Duties of insurers for health benefit plans.--Before
providing delivery by electronic means of a notice or document
related to a health insurance plan, an insurer for the plan
shall have the following duties:
(1) Provide a clear and conspicuous statement informing
a covered person enrolled in the plan of all of the
following:
(i) The types of notices and documents that may be
delivered by electronic means to the covered person.
(ii) T he right of the covered person to withdraw
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consent to having a notice or document delivered by
electronic means at any time without charge.
(iii) The procedures necessary for the covered
person to withdraw consent to having a notice or document
delivered by electronic means and the manner in which the
covered person can update the covered person's email
address for the purposes of this subsection.
(iv) The right of the covered person to have a
notice or document delivered by the insurer upon request
in paper form without charge.
(2) Provide an opportunity for a covered person enrolled
in the plan to opt out of delivery by electronic means.
(3) Certify that the insurer is complying with the
applicable provisions of this chapter, the Electronic
Transactions Act, 45 CFR 164.530(c) (relating to
administrative requirements) and other applicable provisions
of Federal law regarding technical safeguards such as
encryption.
§ 4704. Changes in hardware or software requirements.
After a covered person provides consent in accordance with
section 4703 (relating to electronic delivery of insurance
notices or documents ), if a change in the hardware or software
requirements necessary to access or retain a notice or document
to be delivered by electronic means creates a material risk that
the covered person will not be able to access or retain the
notice or document for which the consent applies, an insurer may
not deliver by electronic means a notice or document to the
covered person unless the insurer complies with the requirements
of section 4703 and provides the covered person with a statement
that describes all of the following:
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(1) The revised hardware and software requirements for
access to and retention of a document delivered by electronic
means.
(2) The right of the covered person to withdraw consent
without the imposition of a condition or consequence that was
not disclosed at the time of initial consent.
§ 4705. Affect, validity and enforceability of insurance
notices or documents.
(a) Content of notices or documents.--Nothing in this
chapter shall be construed to affect requirements related to
content of an insurance notice or document or the timing related
to the notice or document required under any other provision of
Federal or State law.
(b) Confirmation receipts.--If any other applicable Federal
or State law requires confirmation of the receipt of a notice or
document from a covered person or plan sponsor of a health
benefit plan, an insurer shall only deliver by electronic means
a notice or document if the method for delivery provides for an
active confirmation receipt by the covered person or plan
sponsor.
(c) Prior consent.--This chapter shall not apply to a notice
or document delivered by electronic means by an insurer before
the effective date of this subsection to a covered person who,
prior to the effective date of this subsection, provided consent
to the insurer to receive a notice or document delivered by
electronic means from the insurer.
(d) Validity or enforceability.--The validity or
enforceability of a contract or policy of an insurer executed by
a covered person shall not be denied solely because of the
failure of the insurer to obtain electronic consent or
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confirmation of consent of the covered person in accordance with
this chapter if the notice or document is delivered in paper
form.
§ 4706. Withdrawal of consent.
(a) Procedures.--No later than 30 days after the effective
date of this subsection, an insurer shall develop procedures by
which a covered person may withdraw consent to receive a notice
or documents delivered by electronic means.
(b) Legality.--Withdrawal of consent by a covered person to
receive a notice or document delivered by electronic means from
an insurer shall not affect the legality or enforceability of a
notice or document delivered by electronic means to the covered
person before the withdrawal of consent takes effect.
(c) Effect.--Withdrawal of consent by a covered person to
receive a notice or document delivered by electronic means from
an insurer shall take effect within a reasonable period of time
after the insurer receives notice of the covered person's
withdrawal.
(d) Noncompliance.--Failure by an insurer to comply with any
provision of section 4703 (relating to electronic delivery of
insurance notices or documents) or 4704 (relating to changes in
hardware or software requirements) may be treated at the
election of a covered person as a withdrawal of consent for
purposes of this chapter.
§ 4707. Prior consent for electronic delivery of insurance
notices or documents.
If an insurer has a documented record from a covered person
indicating approval by the covered person for a notice or
document to be delivered by electronic means from the insurer
before the effective date of this section and the insurer
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intends to deliver by electronic means an additional notice or
document under this chapter, prior to providing the additional
notice or document for delivery by electronic means, the insurer
shall comply with sections 4703 (relating to electronic delivery
of insurance notices or documents) and 4704 (relating to changes
in hardware or software requirements) and provide the covered
person with a statement that describes the following:
(1) A list of each notice or document that will be
delivered by electronic means that was not previously
delivered by electronic means.
(2) The covered person's right to withdraw consent for
the delivery by electronic means of a notice or document
without imposition of a condition or consequence that was not
previously disclosed to the covered person .
§ 4708. Alternative methods of delivery.
(a) Alternative methods.--An insurer shall deliver a notice
or document to a covered person by any other method that was
authorized by Federal or State law before the effective date of
this subsection other than delivery by electronic means if
either of the following occurs:
(1) The insurer attempts to deliver the notice or
document by electronic means and has a reasonable basis for
believing that the notice or document has not been received
by the covered person .
(2) The insurer becomes aware that the email address
provided by the covered person to the insurer is no longer
valid.
(b) Confidentiality.--Nothing in this chapter shall be
construed to preclude the ability of a covered person to request
confidential communication of the covered person's protected
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health information as permitted by the Health Insurance
Portability and Accountability Act of 1996 (Public Law 104-191,
110 Stat. 1936).
(c) Construction.--Nothing in this chapter shall be
construed to preclude the ability of an insurer to deliver a
notice or document to a covered person by any method authorized
by Federal or State law.
§ 4709. Limitation on civil liability.
An insurer shall not be civilly liable for any harm or injury
that occurs due to a covered person electing to receive a notice
or document for delivery by electronic means or due to any of
the following:
(1) The insurer's failure to deliver by electronic means
a notice or document if the insurer has a reasonable belief
that the covered person does not require an alternative
method of delivery under section 4708 (relating to
alternative methods of delivery).
(2) The covered person's failure to receive a notice or
document delivered by electronic means.
§ 4710. Delivery of insurance policies and endorsements.
(a) Authorization.--An insurer may mail, deliver or, if the
the plan sponsor obtains a separate specific consent, post on
the insurer's publicly accessible Internet website an insurance
policy and endorsement that does not contain any personally
identifiable information.
(b) Internet website posting requirements.--If an insurer
elects to post an insurance policy and endorsement on the
insurer's publicly accessible Internet website, in lieu of
mailing or delivering the policy and endorsement to the insured,
the plan sponsor shall have the following duties:
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(1) The insurer shall ensure that the policy and
endorsement are accessible to the plan sponsor and producer
of record and remains accessible while the policy is in
effect.
(2) After the expiration of the policy, the insurer
shall do one of the following:
(i) Make the expired policy and endorsement
available upon request for a period of no less than five
years.
(ii) If the insurer continues to make the expired
policy or endorsement available on the insurer's publicly
accessible Internet website, keep the plan sponsor's user
identification active for a period of no less than five
years.
(c) Printable format.--If an insurer elects to post an
insurance policy and endorsement on the insurer's publicly
accessible Internet website in lieu of mailing or delivering the
policy and endorsement to the covered person , the insurer shall
post the policy and endorsement in a manner that enables the
plan sponsor and producer of record to print and save the policy
and endorsement using a program or application that is widely
available on the Internet and free to use.
(d) Description.--The insurer shall provide the following
information to the plan sponsor in or simultaneous with each
declaration page provided at the time of issuance of an initial
insurance policy and each renewal of the policy:
(1) A description of the exact policy and endorsement
form purchased by the plan sponsor .
(2) A description of the plan sponsor's right to receive
upon request and without charge an electronic or paper copy
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of the policy and endorsement.
(3) The publicly accessible Internet website at which
the policy and endorsement are posted by the insurer.
(e) Paper copies.--Upon request by a plan sponsor , the
insurer shall mail a paper copy of the plan sponsor's insurance
policy and endorsement. The insurer shall mail the first paper
copy of the insurance policy and endorsement to the plan sponsor
without charge, but may impose a fee on each subsequent request
for a paper copy.
(f) Notice of change.--An insurer shall provide a notice,
via electronic means or in writing at the plan sponsor's option,
of all of the following to the plan sponsor :
(1) A change to the insurance policy and endorsement.
(2) The plan sponsor's right to obtain, upon request and
without charge after receipt of the initial copy, a paper
copy of the insurance policy and endorsement and the publicly
accessible Internet website at which the policy and
endorsement are posted.
(g) Construction.--Nothing in this section shall be
construed to affect or change any of the following pertaining to
the time or content of a disclosure or document required to be
provided to a plan sponsor under Federal or State law.
Section 2. This act shall take effect in 60 days.
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