S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8885
 
                             I N  S E N A T E
 
                              August 7, 2020
                                ___________
 
 Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 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

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The opening paragraph of subparagraph (H) of paragraph 2 of
 subsection (d) of section 3216 of the insurance law, as amended by chap-
 ter 344 of the laws of 1994, is amended to read as follows:
   CANCELLATION:  Within  the  first ninety days after the date of issue,
 the insurer may cancel this policy by written notice  delivered  to  the
 insured, or sent by first class mail to his OR HER last address as shown
 by  the records of the insurer, AND SHALL ALSO GIVE SUCH NOTICE BY EMAIL
 IF THE INSURER HAS THE INSURED'S EMAIL ADDRESS ON FILE stating when, not
 less than ten days thereafter, such cancellation shall be effective.  In
 the event of cancellation, the insurer will return promptly the pro-rata
 unearned  portion  of  any  premium  paid. Cancellation shall be without
 prejudice to any claim  originating  prior  to  the  effective  date  of
 cancellation.
   § 2. Subsection (c) of section 3216 of the insurance law is amended by
 adding a new paragraph 15 to read as follows:
   (15)  THAT  THE INSURER OFFERS THE PERSON APPLYING FOR SUCH POLICY THE
 OPTION TO RECEIVE ALL NOTIFICATIONS REQUIRED BY THIS  SECTION  ELECTRON-
 ICALLY.
   § 3. Subparagraph (A) of paragraph 1 of subsection (d) of section 3216
 of  the  insurance law, as amended by chapter 13 of the laws of 2002, is
 amended to read as follows:
   (A) ENTIRE CONTRACT; CHANGES: This policy, including the  endorsements
 and  the  attached  papers,  if  any, constitutes the entire contract of
 insurance. No change in this policy shall be valid until approved by  an
 executive  officer  of  the insurer and unless such approval be endorsed
 hereon or attached hereto. No agent or broker has  authority  to  change
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD09593-02-9

 S. 8885                             2
 
 this policy or to waive any of its provisions.  THE INSURER SHALL NOTIFY
 THE  INSURED  OF  ANY  MAJOR CHANGE MADE TO THIS POLICY VIA EMAIL IF THE
 INSURER HAS THE INSURED'S EMAIL ADDRESS ON FILE.
   § 4. Subparagraph (B) of paragraph 3 of subsection (g) of section 3216
 of  the  insurance  law, as added by chapter 661 of the laws of 1997, is
 amended to read as follows:
   (B) the insurer provides written notice of  such  discontinuance,  AND
 NOTICE VIA EMAIL IF THE INSURER HAS THE INSURED'S EMAIL ADDRESS ON FILE,
 to each covered individual at least one hundred eighty days prior to the
 date of termination of such coverage;
   § 5. Subparagraph (B) of paragraph 2 of subsection (g) of section 3216
 of  the  insurance  law, as added by chapter 661 of the laws of 1997, is
 amended to read as follows:
   (B) the insurer provides written notice of  such  discontinuance,  AND
 NOTICE VIA EMAIL IF THE INSURER HAS THE INSURED'S EMAIL ADDRESS ON FILE,
 to  each  covered  individual  at least ninety days prior to the date of
 discontinuance of such coverage;
   § 6. Paragraph 2 of subsection (a) of section 3221  of  the  insurance
 law is amended to read as follows:
   (2)  That  no agent has authority to change the policy or waive any of
 its provisions and that no change in the policy shall  be  valid  unless
 approved  by  an  officer of the insurer and evidenced by endorsement on
 the policy, or by amendment to the policy signed by the policyholder and
 the insurer.  THE INSURER SHALL NOTIFY THE INSURED  OF  ANY  SIGNIFICANT
 CHANGE  MADE  TO  THE  POLICY VIA EMAIL IF THE INSURER HAS THE INSURED'S
 EMAIL ADDRESS ON FILE.
   § 7. The opening paragraph of item (i) of subparagraph  (A)  of  para-
 graph  3  of  subsection  (p)  of  section 3221 of the insurance law, as
 amended by chapter 398 of the laws  of  2010,  is  amended  to  read  as
 follows:
   the  insurer  provides  written  notice  to each policyholder provided
 coverage of this class in such market (and to all employees  and  member
 insureds  covered  under  such coverage) of such discontinuance at least
 ninety days prior to  the  date  of  discontinuance  of  such  coverage,
 PROVIDED,  HOWEVER, THE INSURER SHALL ALSO PROVIDE SUCH NOTICE VIA EMAIL
 IF THE INSURER HAS THE EMAIL ADDRESSES OF THE POLICYHOLDERS ON FILE.  In
 addition to any other information required of notices by the superinten-
 dent, this written notice shall conspicuously include an explanation, in
 plain language, of the policyholder's and covered employee's  or  member
 insured's  rights  under  this  subparagraph  and (B) of this paragraph,
 including:
   § 8. Item (i) of subparagraph (E) of paragraph 3 of subsection (p)  of
 section 3221 of the insurance law, as amended by chapter 398 of the laws
 of 2010, is amended to read as follows:
   (i)  the  insurer provides written notice to the superintendent and to
 each policyholder (and all employees and member insureds  covered  under
 such  coverage)  of such discontinuance at least one hundred eighty days
 prior to the date of the  discontinuance  of  such  coverage,  PROVIDED,
 HOWEVER,  THE  INSURER  SHALL  ALSO PROVIDE SUCH NOTICE VIA EMAIL IF THE
 INSURER HAS THE EMAIL ADDRESSES OF THE POLICYHOLDERS ON FILE;
   § 9. Subsection (a) of section 3221 of the insurance law is amended by
 adding a new paragraph 17 to read as follows:
   (17) THAT THE INSURER OFFERS THE PERSON APPLYING FOR SUCH  POLICY  THE
 OPTION  TO  RECEIVE ALL NOTIFICATIONS REQUIRED BY THIS SECTION ELECTRON-
 ICALLY.

 S. 8885                             3

   § 10. Paragraph 1 of subsection (h) of section 3425 of  the  insurance
 law, as amended by chapter 675 of the laws of 2003, is amended and a new
 paragraph 4 is added to read as follows:
   (1) Proof of mailing of a notice of cancellation, reduction of limits,
 substitution  of  policy  form,  elimination  of  coverages, conditioned
 renewal or of intention not to renew, or proof of  the  mailing  of  the
 reasons therefor, to the named insured at the address shown in the poli-
 cy,  shall be sufficient proof of the giving of notice and the giving of
 reasons required by this section.   PROVIDED, HOWEVER, WITH  RESPECT  TO
 AUTOMOBILE  INSURANCE  IF THE INSURER HAS THE INSURED'S EMAIL ADDRESS ON
 FILE THE INSURER SHALL SEND  A  NOTICE  OF  CANCELLATION,  REDUCTION  OF
 LIMITS,  SUBSTITUTION  OF  POLICY FORM, ELIMINATION OF COVERAGES, CONDI-
 TIONAL RENEWAL OR OF INTENTION NOT TO RENEW, OR NOTICE  OF  THE  REASONS
 THEREFOR TO THE INSURED VIA EMAIL.
   (4)  THE  INSURER  OF  ANY  AUTOMOBILE INSURANCE SHALL, WHEN ISSUING A
 COVERED POLICY, OFFER THE INSURED THE OPTION OF  OPTING  INTO  PAPERLESS
 COMMUNICATION  TO  RECEIVE  ALL NOTIFICATION REGARDING ANY CANCELLATION,
 REDUCTION OF LIMITS, SUBSTITUTION OF POLICY FORM, ELIMINATION OF  COVER-
 AGES, CONDITIONED RENEWAL OR OF INTENTION NOT TO RENEW, OR NOTICE OF THE
 REASONS THEREFOR.
   §  11.  Items  (i)  and  (ii)  of  subparagraph  (C) of paragraph 2 of
 subsection (c) of section 4304 of the insurance law, item (i) as amended
 by chapter 317 of the laws of 2017 and item (ii) as amended  by  chapter
 661 of the laws of 1997, are amended to read as follows:
   (i)  Discontinuance  of  a class of contract upon not less than ninety
 days' prior written notice, AND NOTICE VIA EMAIL IF THE CORPORATION  HAS
 THE  ENROLLED  INDIVIDUAL'S  EMAIL  ADDRESS ON FILE.   In exercising the
 option to discontinue coverage pursuant to this  item,  the  corporation
 must act uniformly without regard to any health status-related factor of
 enrolled  individuals  or  individuals  who may become eligible for such
 coverage and must offer to subscribers or group remitting agents, as may
 be appropriate, the option  to  purchase  all  other  individual  health
 insurance  coverage currently being offered by the corporation to appli-
 cants in that market. Provided, however, the superintendent  may,  after
 giving  due consideration to the public interest, approve a request made
 by a corporation for the corporation to satisfy the requirements of this
 item through the offering of contracts at  each  level  of  coverage  as
 defined  in  section  1302(d)  of  the  affordable care act, 42 U.S.C. §
 18022(d) that contains  the  benefits  described  in  paragraph  one  of
 subsection  (b)  of  section four thousand three hundred twenty-eight of
 this [chapter] ARTICLE by another corporation, insurer or health mainte-
 nance organization within the corporation's same holding company system,
 as defined in article fifteen of this chapter.
   (ii) Discontinuance of  all  hospital,  surgical  or  medical  expense
 coverage  in  the  individual  direct  payment market in this state upon
 written notice to the superintendent and to  each  subscriber  not  less
 than one hundred eighty days prior to the date of the expiration of such
 coverage,  AND  NOTICE VIA EMAIL IF THE CORPORATION HAS THE SUBSCRIBER'S
 EMAIL ADDRESS ON FILE.  In the event of such a withdrawal from the indi-
 vidual direct payment market, the  corporation  must  also  provide  the
 superintendent  with  a written plan to minimize potential disruption in
 the marketplace occasioned by such withdrawal. In addition,  the  corpo-
 ration  may  not  provide  for the issuance of any hospital, surgical or
 medical expense coverage in the individual direct payment market in this
 state during the five-year period beginning on the date of  the  discon-
 tinuance of the last health insurance coverage not so renewed.

 S. 8885                             4
 
   §  12.  The opening paragraph of item (i) of subparagraph (A) and item
 (i) of subparagraph (E) of paragraph 3 of subsection (j) of section 4305
 of the insurance law, as amended by chapter 398 of the laws of 2010, are
 amended to read as follows:
   the  corporation  provides written notice to each contract holder, AND
 NOTICE VIA EMAIL IF THE CORPORATION  HAS  THE  CONTRACT  HOLDER'S  EMAIL
 ADDRESS  ON FILE, provided coverage of this class in such market (and to
 all employees and member insureds covered under such coverage)  of  such
 discontinuance  at least ninety days prior to the date of discontinuance
 of such coverage.   In addition to any  other  information  required  of
 notices  by  the superintendent, this written notice shall conspicuously
 include an explanation, in plain language, of the contract holder's  and
 covered  employee's  or  member insured's rights under this subparagraph
 and subparagraph (B) of this paragraph, including:
   (i) the corporation provides written notice to the superintendent  and
 to  each  contract holder (and all employees and member insureds covered
 under such coverage), AND NOTICE VIA EMAIL IF THE  CORPORATION  HAS  THE
 CONTRACT HOLDER'S EMAIL ADDRESS ON FILE, of such discontinuance at least
 one  hundred eighty days prior to the date of the discontinuance of such
 coverage;
   § 13. 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.