S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7369
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               May 22, 2023
                                ___________
 
 Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Banks
 
 AN ACT to amend the banking law, in relation to  electronic  notices  or
   documents in premium finance transactions
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The banking law is amended by adding a new section 578-a to
 read as follows:
   § 578-A. ELECTRONIC NOTES AND  DOCUMENTS.  1.  FOR  PURPOSES  OF  THIS
 SECTION, THE FOLLOWING WORDS HAVE THE FOLLOWING MEANINGS:
   (A) "DELIVERED BY ELECTRONIC MEANS" INCLUDES:
   (I)  DELIVERY  TO  AN  ELECTRONIC  MAIL  ADDRESS  AT WHICH A PARTY HAS
 CONSENTED TO RECEIVE NOTICES OR DOCUMENTS; OR
   (II) POSTING ON AN ELECTRONIC  NETWORK  OR  SITE  ACCESSIBLE  VIA  THE
 INTERNET,  MOBILE  APPLICATION,  COMPUTER, MOBILE DEVICE, TABLET, OR ANY
 OTHER ELECTRONIC DEVICE, TOGETHER WITH SEPARATE NOTICE OF  SUCH  POSTING
 WHICH  SHALL BE PROVIDED BY ELECTRONIC MAIL TO THE ADDRESS AT WHICH SUCH
 PARTY HAS CONSENTED TO RECEIVE NOTICE OR BY ANY OTHER ELECTRONIC  DELIV-
 ERY METHOD THAT HAS BEEN CONSENTED TO BY SUCH PARTY.
   (B)  "PARTY" MEANS ANY RECIPIENT OF ANY NOTICE OR DOCUMENT REQUIRED AS
 PART OF A PREMIUM FINANCE TRANSACTION, INCLUDING, BUT NOT LIMITED TO, AN
 INSURED, INSURANCE AGENT OR BROKER, OR INSURER.
   2. SUBJECT TO THE REQUIREMENTS OF THIS SECTION, ANY NOTICE TO A  PARTY
 OR  ANY  OTHER DOCUMENT REQUIRED UNDER THIS ARTICLE IN A PREMIUM FINANCE
 TRANSACTION OR THAT IS TO SERVE AS EVIDENCE OF A PREMIUM FINANCE  AGREE-
 MENT MAY BE DELIVERED, STORED, AND PRESENTED BY ELECTRONIC MEANS SO LONG
 AS  IT  MEETS  THE REQUIREMENTS OF ARTICLE THREE OF THE STATE TECHNOLOGY
 LAW. WHERE THIS CHAPTER REQUIRES THAT WRITTEN NOTICE TO  AN  INSURED  OR
 ANY OTHER DOCUMENT REQUIRED UNDER THIS ARTICLE BE MAILED OR DELIVERED TO
 THE INSURED AT HIS ADDRESS AS SHOWN IN SUCH PREMIUM FINANCE AGREEMENT OR
 AT HIS LAST KNOWN ADDRESS AS SHOWN ON THE RECORDS OF THE PREMIUM FINANCE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11486-01-3
              

 S. 7369                             2
 
 AGENCY, THE NOTICE MAY BE DELIVERED BY ELECTRONIC MEANS TO AN ELECTRONIC
 ADDRESS NOT SHOWN ON SUCH PREMIUM FINANCE AGREEMENT.
   3.  DELIVERY OF ANY NOTICE OR DOCUMENT IN ACCORDANCE WITH THIS SECTION
 SHALL BE CONSIDERED EQUIVALENT TO ANY MAIL OR DELIVERY  METHOD  REQUIRED
 UNDER THIS ARTICLE.
   4.  A  NOTICE  OR  DOCUMENT  MAY BE DELIVERED BY ELECTRONIC MEANS BY A
 PREMIUM FINANCE AGENCY TO A PARTY UNDER THIS SECTION IF:
   (A) SUCH PARTY HAS AFFIRMATIVELY CONSENTED TO SUCH METHOD OF  DELIVERY
 AND HAS NOT WITHDRAWN SUCH CONSENT;
   (B)  SUCH  PARTY,  BEFORE GIVING CONSENT, IS PROVIDED WITH A CLEAR AND
 CONSPICUOUS STATEMENT INFORMING SUCH PARTY OF:
   (I) THE RIGHT OF SUCH PARTY TO WITHDRAW, AT ANY TIME, CONSENT TO  HAVE
 SUCH NOTICE OR DOCUMENT BE DELIVERED BY ELECTRONIC MEANS, AND ANY CONDI-
 TIONS OR CONSEQUENCES IMPOSED IN THE EVENT CONSENT IS WITHDRAWN;
   (II)  THE TYPES OF NOTICES AND DOCUMENTS TO WHICH SUCH PARTY'S CONSENT
 WOULD APPLY;
   (III) THE RIGHT OF SUCH PARTY TO HAVE SUCH NOTICE OR  DOCUMENT  DELIV-
 ERED IN PAPER FORM; AND
   (IV) THE PROCEDURES SUCH PARTY MUST FOLLOW TO WITHDRAW CONSENT TO HAVE
 SUCH NOTICE OR DOCUMENT DELIVERED BY ELECTRONIC MEANS AND TO UPDATE SUCH
 PARTY'S ELECTRONIC MAIL ADDRESS;
   (C) SUCH PARTY:
   (I)  BEFORE  GIVING CONSENT, IS PROVIDED WITH A STATEMENT OF THE HARD-
 WARE AND SOFTWARE REQUIREMENTS FOR  ACCESS  TO  AND  RETENTION  OF  SUCH
 NOTICE OR DOCUMENT DELIVERED BY ELECTRONIC MEANS; AND
   (II) CONSENTS ELECTRONICALLY, OR CONFIRMS CONSENT ELECTRONICALLY, IN A
 MANNER  THAT REASONABLY DEMONSTRATES THAT SUCH PARTY CAN ACCESS INFORMA-
 TION IN THE ELECTRONIC FORM THAT WILL BE USED FOR NOTICES  OR  DOCUMENTS
 DELIVERED  BY ELECTRONIC MEANS AS TO WHICH SUCH PARTY HAS GIVEN CONSENT;
 AND
   (D) AFTER CONSENT OF SUCH PARTY IS GIVEN, SUCH PREMIUM FINANCE AGENCY,
 IN THE EVENT A CHANGE IN THE HARDWARE OR SOFTWARE REQUIREMENTS NEEDED TO
 ACCESS OR RETAIN SUCH NOTICE OR DOCUMENT DELIVERED BY  ELECTRONIC  MEANS
 CREATES  A  MATERIAL  RISK THAT SUCH PARTY WILL NOT BE ABLE TO ACCESS OR
 RETAIN A SUBSEQUENT NOTICE OR DOCUMENT TO WHICH SUCH CONSENT APPLIES:
   (I) PROVIDES SUCH PARTY WITH A STATEMENT THAT DESCRIBES:
   (A) THE REVISED HARDWARE AND SOFTWARE REQUIREMENTS FOR ACCESS  TO  AND
 RETENTION OF SUCH NOTICE OR DOCUMENT DELIVERED BY ELECTRONIC MEANS; AND
   (B) THE RIGHT OF SUCH PARTY TO WITHDRAW CONSENT WITHOUT THE IMPOSITION
 ON  ANY  CONDITION  OR CONSEQUENCE THAT WAS NOT DISCLOSED AT THE TIME OF
 INITIAL CONSENT; AND
   (II) COMPLIES WITH PARAGRAPH (B) OF THIS SUBDIVISION.
   5. (A) BEFORE A NOTICE OR DOCUMENT IS DELIVERED BY ELECTRONIC MEANS, A
 PREMIUM FINANCE AGENCY SHALL OBTAIN A PARTY'S CONSENT  TO  DELIVER  SUCH
 NOTICE  OR DOCUMENT BY ELECTRONIC MEANS. SUCH PARTY'S CONSENT TO RECEIVE
 ONE TYPE OF NOTICE OR DOCUMENT SHALL  NOT  BE  CONSTRUED  AS  A  BLANKET
 CONSENT  FOR  EVERY TYPE OF NOTICE AND DOCUMENT TO BE DELIVERED BY ELEC-
 TRONIC MEANS. SUCH PARTY'S CONSENT SHALL ONLY  APPLY  TO  THE  TYPES  OF
 NOTICES  AND  DOCUMENTS IDENTIFIED IN THE CLEAN AND CONSPICUOUS INFORMA-
 TION STATEMENT PROVIDED TO THE CONSENTING PARTY, AS REQUIRED BY SUBPARA-
 GRAPH (II) OF PARAGRAPH (B) OF SUBDIVISION FOUR OF THIS SECTION.
   (B) ANY ELECTRONIC MAIL BEING SENT BY A PREMIUM FINANCE  AGENCY  TO  A
 PARTY IN CONNECTION WITH THE DELIVERY OF A NOTICE OF INTENT TO CANCEL OR
 NOTICE  OF  CANCELLATION  DELIVERED BY ELECTRONIC MEANS SHALL INCLUDE IN
 THE SUBJECT LINE AND BODY OF THE  COMMUNICATION  CLEAR  AND  CONSPICUOUS
 LANGUAGE ALERTING THE RECEIVING PARTY AS TO THE IMPORTANCE OF THE COMMU-
 S. 7369                             3
 
 NICATION  AND  THE TYPE OF NOTICE BEING DELIVERED BY ELECTRONIC MEANS TO
 SUCH PARTY.
   6.  THIS  SECTION  DOES  NOT AFFECT REQUIREMENTS RELATED TO CONTENT OR
 TIMING OF ANY NOTICE OR DOCUMENT REQUIRED UNDER THIS ARTICLE.
   7. THE LEGAL EFFECTIVENESS, VALIDITY, OR ENFORCEABILITY OF ANY PREMIUM
 FINANCE AGREEMENT EXECUTED BY A PARTY MAY NOT BE DENIED  SOLELY  BECAUSE
 OF  THE  FAILURE TO OBTAIN ELECTRONIC CONSENT OR CONFIRMATION OF CONSENT
 OF THE PARTY PURSUANT TO SUBPARAGRAPH (II) OF PARAGRAPH (C) OF  SUBDIVI-
 SION FOUR OF THIS SECTION.
   8.  (A)  A  WITHDRAWAL OF CONSENT BY A PARTY DOES NOT AFFECT THE LEGAL
 EFFECTIVENESS, VALIDITY, OR  ENFORCEABILITY  OF  A  NOTICE  OR  DOCUMENT
 DELIVERED  BY  ELECTRONIC  MEANS TO SUCH PARTY BEFORE SUCH WITHDRAWAL OF
 CONSENT IS EFFECTIVE.
   (B) A WITHDRAWAL OF CONSENT BY A PARTY IS EFFECTIVE WITHIN  A  REASON-
 ABLE  PERIOD  OF  TIME  AFTER  RECEIPT  OF  SUCH WITHDRAWAL BY A PREMIUM
 FINANCE AGENCY.
   (C) FAILURE BY A PREMIUM FINANCE AGENCY TO COMPLY WITH  PARAGRAPH  (D)
 OF  SUBDIVISION FOUR AND SUBDIVISION TEN OF THIS SECTION MAY BE TREATED,
 AT THE ELECTION OF THE PARTY, AS A WITHDRAWAL OF CONSENT FOR PURPOSES OF
 THIS SECTION.
   9. THIS SECTION DOES NOT APPLY TO A NOTICE OR DOCUMENT DELIVERED BY  A
 PREMIUM  FINANCE  AGENCY IN AN ELECTRONIC FORM BEFORE THE EFFECTIVE DATE
 OF THIS SECTION TO A PARTY WHO,  BEFORE  SUCH  DATE,  HAS  CONSENTED  TO
 RECEIVE  A NOTICE OR DOCUMENT IN AN ELECTRONIC FORM OTHERWISE ALLOWED BY
 LAW.
   10. IF THE CONSENT OF A PARTY TO RECEIVE CERTAIN NOTICES OR  DOCUMENTS
 IN  AN  ELECTRONIC  FORM IS ON FILE WITH A PREMIUM FINANCE AGENCY BEFORE
 THE EFFECTIVE DATE OF THIS SECTION, AND PURSUANT TO THIS  SECTION,  SUCH
 PREMIUM  FINANCE  AGENCY  INTENDS TO DELIVER ADDITIONAL NOTICES OR DOCU-
 MENTS TO SUCH PARTY IN AN ELECTRONIC FORM, THEN PRIOR TO DELIVERING SUCH
 ADDITIONAL NOTICES OR DOCUMENTS  ELECTRONICALLY,  SUCH  PREMIUM  FINANCE
 AGENCY SHALL:
   (A) PROVIDE SUCH PARTY WITH A STATEMENT THAT DESCRIBES:
   (I)  SUCH  NOTICES  OR DOCUMENTS THAT SHALL BE DELIVERED BY ELECTRONIC
 MEANS UNDER THIS SECTION THAT WERE NOT  PREVIOUSLY  DELIVERED  ELECTRON-
 ICALLY; AND
   (II)  SUCH  PARTY'S RIGHT TO WITHDRAW CONSENT TO HAVE NOTICES OR DOCU-
 MENTS DELIVERED BY ELECTRONIC  MEANS,  WITHOUT  THE  IMPOSITION  OF  ANY
 CONDITION  OR  CONSEQUENCE THAT WAS NOT DISCLOSED AT THE TIME OF INITIAL
 CONSENT; AND
   (B) COMPLY WITH PARAGRAPH (B) OF SUBDIVISION FOUR OF THIS SECTION.
   11. A PREMIUM FINANCE AGENCY SHALL MAIL OR DELIVER A NOTICE  OR  DOCU-
 MENT  BY  ANY OTHER DELIVERY METHOD PERMITTED BY THIS ARTICLE OTHER THAN
 ELECTRONIC MEANS IF SUCH PREMIUM FINANCE AGENCY:
   (A) ATTEMPTS TO DELIVER BY ELECTRONIC MEANS SUCH  NOTICE  OR  DOCUMENT
 AND  HAS  A  REASONABLE BASIS FOR BELIEVING THAT SUCH NOTICE OR DOCUMENT
 HAS NOT BEEN RECEIVED BY THE PARTY; OR
   (B) BECOMES AWARE THAT THE ELECTRONIC MAIL ADDRESS  PROVIDED  BY  SUCH
 PARTY IS NO LONGER VALID.
   12. THIS SECTION SHALL NOT BE CONSTRUED TO MODIFY, LIMIT, OR SUPERSEDE
 THE  PROVISIONS  OF  THE  FEDERAL  ELECTRONIC  SIGNATURES  IN GLOBAL AND
 NATIONAL COMMERCE ACT, PUBLIC LAW 106-229, AS AMENDED.
   § 2. This act shall take effect immediately.