§ 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
delivery 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
agreement 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 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and has not withdrawn such consent;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
conditions or consequences imposed in the event consent is withdrawn;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
delivered 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
hardware 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
information 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
electronic means. Such party's consent shall only apply to the types of
notices and documents identified in the clean and conspicuous
information statement provided to the consenting party, as required by
subparagraph (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
communication 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
subdivision 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
reasonable 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
documents 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
electronically; and

(ii) such party's right to withdraw consent to have notices or
documents 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
document 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.