A04886
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1664
Session of
2023
INTRODUCED BY SCOTT, PIELLI, MADDEN, SANCHEZ, HILL-EVANS,
BENHAM, PISCIOTTANO, DALEY, BOROWSKI, CERRATO, CONKLIN, GREEN
AND KHAN, SEPTEMBER 12, 2023
AS REPORTED FROM COMMITTEE ON INSURANCE, HOUSE OF
REPRESENTATIVES, AS AMENDED, MARCH 25, 2024
AN ACT
Amending Title 40 (Insurance) of the Pennsylvania Consolidated
Statutes, in regulation of insurers and related persons
generally, providing for payment choice and for electronic
notice of insurance practices; and imposing penalties.
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 chapters to read:
CHAPTER 47
PAYMENT CHOICE
Sec.
4701. Definitions.
4702. Payment.
4703. Regulations.
4704. Enforcement.
ยง 4701. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
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context clearly indicates otherwise:
"Commissioner." The Insurance Commissioner of the
Commonwealth.
"Covered person." A policyholder, subscriber or other
individual who is entitled to receive health care services under
a health insurance policy.
"Credit card payment." A type of electronic funds transfer
in which a dental insurer or its contracted vendor issues a
single-use series of numbers associated with the payment of
covered dental services performed by a dentist and chargeable at
a predetermined rate for which the dentist is responsible for
processing the payment by a credit card terminal or Internet
portal. The term includes virtual or online credit card payments
for which no physical card is presented to the dentist and the
single-use credit card expires upon payment processing.
"Dental insurance policy." An insurance policy that pays or
provides dental expense benefits for covered dental services and
is delivered or issued for delivery by, or through a dental
insurer. The term includes coverage for dental benefits issued
either on a stand-alone basis or integrated, or otherwise
incorporated into the terms and coverage of a health benefits
plan.
"Dental insurer." An entity that offers, issues or renews a
dental insurance policy that covers dental services provided by
a dentist and that is governed under any of the following:
(1) The act of May 17, 1921 (P.L.682, No.284), known as
The Insurance Company Law of 1921, including section 630 and
Article XXIV.
(2) The act of December 29, 1972 (P.L.1701, No.364),
known as the Health Maintenance Organization Act.
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(3) Chapter 61 (relating to hospital plan corporations).
(4) Chapter 63 (relating to professional health services
plan corporations).
"Dentist." A person licensed by the State Board of Dentistry
to provide dental services. The term does not include a dental
hygienist as defined in section 2 of the act of May 1, 1933
(P.L.216, No.76), known as The Dental Law.
"Dentist agent." A person who establishes a contractual
arrangement with a dentist to process bills for services
provided by the dentist under terms and conditions established
between the agent and dentist. The contracts may permit the
dentist agent to submit bills, request reconsideration and
receive reimbursements.
"Electronic funds transfer." A payment of any method of
electronic funds transfer other than through the Automated
Clearing House Network, as codified in 45 CFR 162.1601 (relating
to health care electronic funds transfers (EFT) and remittance
advice transaction) and 162.1602 (relating to Standards for
health care electronic funds transfers (EFT) and remittance
advice transaction).
"MERCHANT SERVICER." ANY OF THE FOLLOWING, AS DEFINED IN 26
U.S.C. ยง 6050W(B) (RELATING TO RETURNS RELATING TO PAYMENTS MADE
IN SETTLEMENT OF PAYMENT CARD AND THIRD PARTY NETWORK
TRANSACTIONS):
(1) A PAYMENT SETTLEMENT ENTITY.
(2) A MERCHANT ACQUIRING ENTITY.
(3) A THIRD-PARTY SETTLEMENT ORGANIZATION.
ยง 4702. Payment.
(a) Payment.--A dental insurer or its contracted vendor may
not restrict the method of payment to a dentist so that the
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exclusive payment method is a credit card payment.
(b) Changing payment.--If initiating or changing payments to
a dentist using electronic funds transfer payments, including
credit card payments, a dental insurer or its contracted vendor
shall:
(1) Advise the dentist of all available payment methods.
(2) Notify the dentist of any fees imposed by the dental
insurer or through its contracted vendor. A contracted vendor
shall not include a financial institution chosen by the
dentist.
(2) NOTIFY THE DENTIST THAT FEES IMPOSED BY THE DENTAL
INSURER OR ITS CONTRACTED VENDOR MAY APPLY TO ELECTRONIC
FUNDS TRANSFER PAYMENTS OR CREDIT CARD PAYMENTS AND PROVIDE
INSTRUCTIONS AND CONTACT INFORMATION SO THAT THE DENTIST MAY
OBTAIN THE EXACT AMOUNT OF THE FEES. FEES CHARGED BY A
FINANCIAL INSTITUTION OR MERCHANT SERVICER CHOSEN BY THE
DENTIST SHALL NOT BE INCLUDED FOR THE PURPOSES OF THIS
PARAGRAPH.
(3) Provide clear instructions to the dentist for the
process of selecting a payment method.
(4) Not charge a fee solely to transmit the payment to
the dentist, unless the dentist has consented to the fee.
(c) Fees.--
(1) A dental insurer or its contracted vendor that
initiates or changes payments to a dentist through the
Automated Clearing House Network, as defined in 45 CFR
162.1601 (relating to health care electronic funds transfers
(EFT) and remittance advice transaction) and 162.1602
(relating to Standards for health care electronic funds
transfers (EFT) and remittance advice transaction), shall not
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charge a fee solely to transmit the payment to the dentist
unless the dentist has consented to the fee.
(2) A dentist agent may charge reasonable fees to a
dentist for Automated Clearing House Network payments related
to transaction management, data management, portal services
and other value-added services in addition to the bank
transmittal.
(d) Waiver prohibited.--The provisions of this section may
not be waived by contract, and any contractual clause in
conflict with the provisions of this section or that purport to
waive any requirements of this section are void.
ยง 4703. Regulations.
The department may promulgate necessary and appropriate
regulations to implement this chapter.
ยง 4704. Enforcement.
(a) Penalties.--Upon satisfactory evidence of the violation
of any section of this chapter by a dental insurer or any other
person, one or more of the following penalties may be imposed at
the commissioner's discretion:
(1) A fine of not more than $5,000 for each violation of
this chapter.
(2) A fine of not more than $10,000 for each willful
violation of this chapter.
(b) Limitations.--
(1) Fines imposed against an individual insurer under
this chapter may not exceed $500,000 in the aggregate during
a single calendar year.
(2) Fines imposed against any other person under this
chapter may not exceed $100,000 in the aggregate during a
single calendar year.
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(c) Additional remedies.--The enforcement remedies imposed
under this subsection are in addition to any other remedies or
penalties that may be imposed under any other applicable law of
this Commonwealth, including:
(1) The act of July 22, 1974 (P.L.589, No.205), known as
the Unfair Insurance Practices Act. Violations of this
chapter shall be deemed to be an unfair method of competition
and an unfair or deceptive act or practice under that act.
(2) The act of December 18, 1996 (P.L.1066, No.159),
known as the Accident and Health Filing Reform Act.
(3) The act of June 25, 1997 (P.L.295, No.29), known as
the Pennsylvania Health Care Insurance Portability Act.
(d) Administrative procedure.--The administrative provisions
of this section shall be subject to 2 Pa.C.S. Ch. 5 Subch. A
(relating to practice and procedure of Commonwealth agencies). A
party against whom penalties are assessed in an administrative
action may appeal to Commonwealth Court as provided in 2 Pa.C.S.
Ch. 7 Subch. A (relating to judicial review of Commonwealth
agency action).
Section 2. This act shall apply to contracts offered,
entered, issued or renewed after the effective date of this
section.
Section 3. This act shall take effect in 60 days.
"Electronic funds transfer." A payment of any method of
electronic funds transfer as codified in 45 CFR 162.1601
(relating to health care electronic funds transfers (EFT) and
remittance advice transaction) and 162.1602 (relating to
standards for health care electronic funds transfers (EFT) and
remittance advice transaction).
"Health care provider." A licensed hospital or health care
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facility, medical equipment supplier or person who is licensed,
certified or otherwise regulated to provide health care services
under the laws of this Commonwealth, including a physician,
podiatrist, optometrist, psychologist, physical therapist,
certified nurse practitioner, registered nurse, nurse midwife,
physician's assistant, chiropractor, dentist, pharmacist or an
individual accredited or certified to provide behavioral health
services. The term includes an individual providing emergency
services under a licensed emergency medical services agency as
defined in 35 Pa.C.S. ยง 8103 (relating to definitions).
"Health care service." A covered treatment, admission,
procedure, medical supplies and equipment or other service,
including behavioral health, prescribed or otherwise provided or
proposed to be provided by a health care provider to a covered
person for the diagnosis, prevention, treatment, cure or relief
of a health condition, illness, injury or disease under the
terms of health insurance policy.
"Health insurance policy." A policy, subscriber contract,
certificate or plan issued by an insurer that provides medical
or health care coverage, including a dental insurance policy.
The term does not include any of the following:
(1) An accident only policy.
(2) A credit only policy.
(3) A long-term care or disability income policy.
(4) A specified disease policy.
(5) A Medicare supplement policy.
(6) A TRICARE policy, including a Civilian Health and
Medical Program of the Uniformed Services (CHAMPUS)
supplement policy.
(7) A fixed indemnity policy.
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(8) A hospital indemnity policy.
(9) A workers' compensation policy.
(10) An automobile medical payment policy under 75
Pa.C.S. (relating to vehicles).
(11) A homeowner's insurance policy.
(12) Any other similar policies providing for limited
benefits.
"Health insurer." An entity, including a dental insurer,
that offers, issues or renews a health insurance policy that is
offered or governed under any of the following:
(1) The act of May 17, 1921 (P.L.682, No.284), known as
The Insurance Company Law of 1921, including section 630 and
Article XXIV.
(2) The act of December 29, 1972 (P.L.1701, No.364),
known as the Health Maintenance Organization Act.
(3) Chapter 61 (relating to hospital plan corporations).
(4) Chapter 63 (relating to professional health services
plan corporations).
"Merchant servicer." Any of the following, as defined in 26
U.S.C. ยง 6050W(b) (relating to returns relating to payments made
in settlement of payment card and third party network
transactions):
(1) A payment settlement entity.
(2) A merchant acquiring entity.
(3) A third-party settlement organization.
"Participating health care provider." A health care provider
that has entered into a contractual or operating relationship
with a health insurer to participate in one or more designated
networks of the health insurer and to provide health care
services to covered persons under the terms of the health
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insurer's administrative policy.
ยง 4702. Payment.
(a) Payment.--A health insurer or its contracted vendor may
not restrict the method of payment to a dentist or participating
health care provider so that the exclusive payment method is a
credit card payment.
(b) Changing payment.--If initiating or changing payments to
a dentist or participating health care provider using electronic
funds transfer payments, including credit card payments, a
health insurer or its contracted vendor shall:
(1) Advise the health care provider of all available
payment methods.
(2) Notify the health care provider that fees imposed by
the health insurer or its contracted vendor may apply to
electronic funds transfer payments, including credit card
payments, and provide instructions and contact information so
that the health care provider may obtain the exact amount of
the fees. Fees charged by a financial institution or merchant
servicer chosen by the health care provider shall not be
included for the purposes of this paragraph.
(3) Provide clear instructions to the health care
provider for the process of selecting a payment method.
(4) Not charge a fee solely to transmit the payment to
the health care provider, unless the health care provider has
consented to the fee.
(c) Waiver prohibited.--The provisions of this section may
not be waived by contract, and any contractual clause in
conflict with the provisions of this section or that purport to
waive any requirements of this section are void.
ยง 4703. Regulations.
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The department may promulgate regulations necessary to
implement this chapter.
ยง 4704. Enforcement.
(a) Penalties.--Upon satisfactory evidence of the violation
of this chapter by a health insurer or any other person, one or
more of the following penalties may be imposed at the
commissioner's discretion:
(1) A fine of not more than $5,000 for each violation of
this chapter.
(2) A fine of not more than $10,000 for each willful
violation of this chapter.
(b) Limitations.--
(1) Fines imposed against an individual insurer under
this chapter may not exceed $500,000 in the aggregate during
a single calendar year.
(2) Fines imposed against any other person under this
chapter may not exceed $100,000 in the aggregate during a
single calendar year.
(c) Additional remedies.--The enforcement remedies imposed
under this section are in addition to any other remedies or
penalties that may be imposed under any other applicable law of
this Commonwealth, including:
(1) The act of July 22, 1974 (P.L.589, No.205), known as
the Unfair Insurance Practices Act. Violations of this
chapter shall be deemed to be an unfair method of competition
and an unfair or deceptive act or practice under that act.
(2) The act of December 18, 1996 (P.L.1066, No.159),
known as the Accident and Health Filing Reform Act.
(3) The act of June 25, 1997 (P.L.295, No.29), known as
the Pennsylvania Health Care Insurance Portability Act.
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(d) Administrative procedure.--The administrative provisions
of this section shall be subject to 2 Pa.C.S. Ch. 5 Subch. A
(relating to practice and procedure of Commonwealth agencies). A
party against whom penalties are assessed in an administrative
action may appeal to Commonwealth Court as provided in 2 Pa.C.S.
Ch. 7 Subch. A (relating to judicial review of Commonwealth
agency action).
CHAPTER 49
ELECTRONIC NOTICE OF INSURANCE PRACTICES
Sec.
49 01. Scope of chapter.
49 02. Definitions.
49 03. Electronic delivery of insurance notices or documents.
49 04. Changes in hardware or software requirements.
49 05. Affect, validity and enforceability of insurance notices
or documents.
49 06. Withdrawal of consent.
49 07. Prior consent for electronic delivery of insurance
notices or documents.
49 08. Alternative methods of delivery.
49 09. Limitation on civil liability.
49 10. Delivery of insurance policies and endorsements.
49 11. Construction.
ยง 49 01. Scope of chapter.
This chapter relates to electronic notice of insurance
practices.
ยง 49 02. 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:
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"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
(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 who establishes, adopts
or maintains a health benefit plan on behalf of a covered
person.
ยง 49 03. Electronic delivery of insurance notices or documents.
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(a) Transactions.--Subject to the requirements of this
section, an insurer may deliver by electronic means a notice to
a covered person or any document 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
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
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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
personal health information to be treated and
communicated confidentially and the process by which a
covered person may receive 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
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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
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
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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.
ยง 49 04. Changes in hardware or software requirements.
After a covered person provides consent in accordance with
section 49 03 (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 such
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 49 03 and provides the covered person with a statement
that describes all of the following:
(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.
ยง 49 05. 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
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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
confirmation of consent of the covered person in accordance with
this chapter if the notice or document is delivered in paper
form.
ยง 49 06. 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
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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 49 03 (relating to electronic delivery of
insurance notices or documents) or 49 04 (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.
ยง 49 07. 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
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 49 03 (relating to electronic delivery
of insurance notices or documents) and 49 04 (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
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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 .
ยง 49 08. 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
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.
ยง 49 09. 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
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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 49 08 (relating to
alternative methods of delivery).
(2) The covered person 's failure to receive a notice or
document delivered by electronic means.
ยง 49 10. Delivery of insurance policies and endorsements.
(a) Authorization.--An insurer may mail, deliver or, if the
the insurer 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 plan
sponsor, the insurer shall have the following duties:
(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
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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
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 the 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,
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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.
ยง 49 11. Construction.
Nothing in this chapter shall be construed as a requirement
on health benefit plans subject to ERISA.
Section 2. This act shall apply to contracts offered,
entered, issued or renewed after the effective date of this
section.
Section 3. This act shall take effect in 60 days.
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