H.F. 504 Section 1. Section 505B.1, subsection 2, Code 2015, is 1 amended to read as follows: 2 2. Subject to subsection 4 the requirements of this 3 section , except for a notice of cancellation, nonrenewal, 4 or termination, any notice to a party or any other document 5 required under applicable law in an insurance transaction or 6 that is to serve as evidence of insurance coverage may be 7 delivered, stored, or presented by electronic means so long as 8 the notice or document meets the requirements of chapter 554D . 9 A notice of cancellation, nonrenewal, or termination shall be 10 delivered by mail as provided by law and shall not be delivered 11 solely by electronic means. However, such a notice may also be 12 delivered by electronic means as a courtesy to a party. 13 Sec. 2. Section 505B.1, subsection 4, Code 2015, is amended 14 by adding the following new paragraphs: 15 NEW PARAGRAPH . 0d. On at least an annual basis, the insurer 16 notifies the party of the party’s electronic mail address on 17 file with the insurer. 18 NEW PARAGRAPH . 00d. The insurer takes measures reasonably 19 calculated to ensure that delivery of a notice or document by 20 electronic means results in receipt of the notice or document 21 by the party. 22 Sec. 3. Section 505B.1, subsection 8, paragraph c, Code 23 2015, is amended to read as follows: 24 c. Failure by an insurer to comply with subsection 4 , 25 paragraph paragraphs “0d” , “00d” , and “d” , may be treated, 26 at the election of the party, as a withdrawal of consent for 27 purposes of this section . 28 Sec. 4. Section 505B.1, subsection 10, Code 2015, is amended 29 to read as follows: 30 10. If the consent of a party to receive certain notices 31 or documents in an electronic form is on file with an insurer 32 before July 1, 2014, and pursuant to this section an insurer 33 intends to deliver additional notices or documents to such 34 party in an electronic form, then prior to delivering such 35 -1- LSB 1726HV (2) 86 av/nh 1/ 5

H.F. 504 additional notices or documents electronically, the insurer 1 shall notify the party do all of the following: 2 a. Provide the party with a statement that describes all of 3 the following: 4 a. (1) The notices or documents that may will be delivered 5 by electronic means under this section that were not previously 6 delivered electronically. 7 b. (2) The party’s right to withdraw consent to have 8 notices or documents delivered by electronic means without 9 the imposition of any condition or consequence that was not 10 disclosed at the time of initial consent . 11 b. Comply with all of the requirements of subsection 4, 12 paragraph “b” . 13 Sec. 5. Section 505B.1, subsection 11, Code 2015, is amended 14 by striking the subsection and inserting in lieu thereof the 15 following: 16 11. An insurer shall deliver a notice or document by any 17 other delivery method permitted by law other than electronic 18 means if either of the following occurs: 19 a. The insurer attempts to deliver the notice or document by 20 electronic means and has a reasonable basis for believing that 21 the notice or document has not been received by the party. 22 b. The insurer becomes aware that the electronic mail 23 address provided by the party is no longer valid. 24 Sec. 6. Section 505B.1, Code 2015, is amended by adding the 25 following new subsection: 26 NEW SUBSECTION . 11A. An insurance producer licensed 27 pursuant to chapter 522B shall not be subject to civil 28 liability for any harm or injury that occurs as a result of a 29 party’s consent to receive any notice or document by electronic 30 means or an insurer’s failure to deliver a notice or document 31 by electronic means. 32 Sec. 7. Section 505B.2, Code 2015, is amended to read as 33 follows: 34 505B.2 Posting of policies on the internet. 35 -2- LSB 1726HV (2) 86 av/nh 2/ 5

H.F. 504 1. Notwithstanding any contrary provision of chapter 1 554D , an insurer may mail, deliver, or post on the insurer’s 2 internet site insurance documents, including policies, riders, 3 endorsements, and annuity contracts that do not contain 4 personally identifiable information. If the insurer elects 5 to post an insurance policy or endorsement on the insurer’s 6 internet site in lieu of mailing or delivering the policy or 7 endorsement to the insured, the insurer must comply with all of 8 the following conditions: 9 1. a. The policy or endorsement must be accessible and 10 remain accessible to the insured and to the licensed insurance 11 producer of record for as long as the policy or endorsement is 12 in force. 13 2. b. After the expiration of the policy or endorsement, 14 the insurer must archive the expired policy or endorsement for 15 a period of five years or other period required by law , and 16 make the policy or endorsement available upon request. 17 3. c. The policy or endorsement must be posted in a manner 18 that enables the insured and the licensed insurance producer 19 of record to print and save the policy or endorsement using 20 programs and applications that are widely available on the 21 internet and free to use. 22 4. d. The insurer must provide the following information 23 in, or simultaneously with, each declarations page provided at 24 the time of issuance of the initial policy and any renewal of 25 that policy: 26 a. (1) A description of the exact policy or endorsement 27 purchased by the insured. 28 b. (2) A method by which the insured may obtain description 29 of the insured’s right to receive , upon request and without 30 charge, a paper copy of the insured’s policy or endorsement by 31 mail . 32 c. (3) An internet address where the insured’s policy or 33 endorsement is posted. 34 e. The insurer, upon request and without charge, must 35 -3- LSB 1726HV (2) 86 av/nh 3/ 5

H.F. 504 deliver a paper copy of the policy or endorsements to the 1 insured by mail. 2 5. f. The insurer must provide notice, in the format 3 preferred by the insured, of any changes to the policy or 4 endorsement, the insured’s right to obtain, upon request and 5 without charge, a paper copy of such policy or endorsement, 6 and the internet address where such policy or endorsement is 7 posted. 8 2. Nothing in this section shall be construed to affect 9 the timing or content of any notice or document required to be 10 provided or made available to any insured under applicable law. 11 EXPLANATION 12 The inclusion of this explanation does not constitute agreement with 13 the explanation’s substance by the members of the general assembly. 14 This bill relates to the electronic delivery and posting of 15 insurance notices and documents. The bill provides that the 16 electronic delivery of such notices and documents by insurers 17 must meet the requirements of Code section 505B.1 as well as 18 the requirements of Code chapter 554D, which relates generally 19 to electronic transactions. However, a notice of cancellation, 20 nonrenewal, or termination of insurance must be delivered by 21 mail and not solely by electronic means. 22 The bill provides that an insurer must notify the party 23 annually of the party’s electronic address that is on file 24 for the party and take reasonable measures to ensure that 25 electronic delivery to the party is successful. If the 26 insurer intends to electronically deliver additional notices 27 or documents to a party who has consented to such delivery, 28 the insurer must provide the party with a statement describing 29 what additional items will be electronically delivered, and 30 reiterate what consent means and the party’s right to withdraw 31 such consent. 32 An insurer is required to deliver a notice or document by any 33 other delivery method permitted by law if the insurer attempts 34 an electronic delivery and reasonably believes the party did 35 -4- LSB 1726HV (2) 86 av/nh 4/ 5

H.F. 504 not receive the notice or document, or the insurer becomes 1 aware that the party’s electronic mail address is no longer 2 valid. 3 An insurance producer licensed pursuant to Code chapter 522B 4 shall not be subject to civil liability for any harm or injury 5 that occurs because of a party’s consent to receive electronic 6 delivery or an insurer’s failure to electronically deliver a 7 notice or document. 8 A policy or endorsement posted on an insurer’s internet site 9 instead of being mailed or delivered must be accessible to 10 the insured and to the licensed insurance producer of record 11 for as long as the policy or endorsement is in force, must be 12 archived for a period of five years or other period required 13 by law, and must be posted in a manner that allows the insured 14 and the insurance producer to print the policy or endorsement. 15 The insurer must also provide information upon issuance of the 16 policy or upon renewal about the insured’s right to request a 17 paper copy of the policy or endorsement by mail without charge. 18 The bill provides that nothing in Code section 505B.2 shall 19 be construed to affect the timing or content of any notice 20 or document required to be provided or made available to any 21 insured under applicable law. 22 -5- LSB 1726HV (2) 86 av/nh 5/ 5