H.F. _____ 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 section , 3 any notice to a party or any other document required under 4 applicable law in an insurance transaction or that is to serve 5 as evidence of insurance coverage may be delivered, stored, or 6 presented by electronic means so long as the notice or document 7 meets the requirements of chapter 554D . 8 Sec. 2. Section 505B.1, subsection 4, paragraph b, Code 9 2015, is amended by striking the paragraph and inserting in 10 lieu thereof the following: 11 b. The party, before giving consent, is provided with a 12 clear and conspicuous statement informing the party of the 13 following: 14 (1) The right of the party to withdraw consent to have a 15 notice or document delivered by electronic means at any time, 16 and any conditions or consequences imposed in the event consent 17 is withdrawn. 18 (2) The types of notices and documents to which the party’s 19 consent applies. 20 (3) The right of a party to have a notice or document 21 delivered in paper form. 22 (4) The procedures a party must follow to withdraw consent 23 to have a notice or document delivered by electronic means or 24 to update the party’s electronic mail address. 25 Sec. 3. Section 505B.1, subsection 4, Code 2015, is amended 26 by adding the following new paragraphs: 27 NEW PARAGRAPH . 0d. On at least an annual basis, the insurer 28 notifies the party of the party’s electronic mail address on 29 file with the insurer. 30 NEW PARAGRAPH . 00d. The insurer takes measures reasonably 31 calculated to ensure that delivery of a notice or document by 32 electronic means results in receipt of the notice or document 33 by the party. 34 Sec. 4. Section 505B.1, subsection 4, paragraph d, 35 -1- LSB 1726HC (4) 86 av/nh 1/ 6

H.F. _____ subparagraph (1), Code 2015, is amended to read as follows: 1 (1) Provides the party with a statement that describes all 2 of the following: 3 (a) The revised hardware and software requirements for 4 access to and retention of a notice or document delivered by 5 electronic means. 6 (b) The right of the party to withdraw consent without the 7 imposition of any fee, condition , or consequence that was not 8 disclosed under paragraph “b” , subparagraph (2) at the time of 9 initial consent . 10 Sec. 5. Section 505B.1, subsection 8, paragraph c, Code 11 2015, is amended to read as follows: 12 c. Failure by an insurer to comply with subsection 4 , 13 paragraph paragraphs “0d” , “00d” , and “d” , may be treated, 14 at the election of the party, as a withdrawal of consent for 15 purposes of this section . 16 Sec. 6. Section 505B.1, subsection 10, Code 2015, is amended 17 to read as follows: 18 10. If the consent of a party to receive certain notices 19 or documents in an electronic form is on file with an insurer 20 before July 1, 2014, and pursuant to this section an insurer 21 intends to deliver additional notices or documents to such 22 party in an electronic form, then prior to delivering such 23 additional notices or documents electronically, the insurer 24 shall notify the party do all of the following: 25 a. Provide the party with a statement that describes all of 26 the following: 27 a. (1) The notices or documents that may will be delivered 28 by electronic means under this section that were not previously 29 delivered electronically. 30 b. (2) The party’s right to withdraw consent to have 31 notices or documents delivered by electronic means without 32 the imposition of any condition or consequence that was not 33 disclosed at the time of initial consent . 34 b. Comply with all of the requirements of subsection 4, 35 -2- LSB 1726HC (4) 86 av/nh 2/ 6

H.F. _____ paragraph “b” . 1 Sec. 7. Section 505B.1, subsection 11, Code 2015, is amended 2 by striking the subsection and inserting in lieu thereof the 3 following: 4 11. An insurer shall deliver a notice or document by any 5 other delivery method permitted by law other than electronic 6 means if either of the following occurs: 7 a. The insurer attempts to deliver the notice or document by 8 electronic means and has a reasonable basis for believing that 9 the notice or document has not been received by the party. 10 b. The insurer becomes aware that the electronic mail 11 address provided by the party is no longer valid. 12 Sec. 8. Section 505B.1, Code 2015, is amended by adding the 13 following new subsection: 14 NEW SUBSECTION . 11A. An insurance producer licensed 15 pursuant to chapter 522B shall not be subject to civil 16 liability for any harm or injury that occurs as a result of a 17 party’s consent to receive any notice or document by electronic 18 means or an insurer’s failure to deliver a notice or document 19 by electronic means. 20 Sec. 9. Section 505B.2, Code 2015, is amended to read as 21 follows: 22 505B.2 Posting of policies on the internet. 23 1. Notwithstanding any contrary provision of chapter 24 554D , an insurer may mail, deliver, or post on the insurer’s 25 internet site insurance documents, including policies, riders, 26 endorsements, and annuity contracts that do not contain 27 personally identifiable information. If the insurer elects 28 to post an insurance policy or endorsement on the insurer’s 29 internet site in lieu of mailing or delivering the policy or 30 endorsement to the insured, the insurer must comply with all of 31 the following conditions: 32 1. a. The policy or endorsement must be accessible and 33 remain accessible to the insured and to the licensed insurance 34 producer of record for as long as the policy or endorsement is 35 -3- LSB 1726HC (4) 86 av/nh 3/ 6

H.F. _____ in force. 1 2. b. After the expiration of the policy or endorsement, 2 the insurer must archive the expired policy or endorsement for 3 a period of five years or other period required by law , and 4 make the policy or endorsement available upon request. 5 3. c. The policy or endorsement must be posted in a manner 6 that enables the insured and the licensed insurance producer 7 of record to print and save the policy or endorsement using 8 programs and applications that are widely available on the 9 internet and free to use. 10 4. d. The insurer must provide the following information 11 in, or simultaneously with, each declarations page provided at 12 the time of issuance of the initial policy and any renewal of 13 that policy: 14 a. (1) A description of the exact policy or endorsement 15 purchased by the insured. 16 b. (2) A method by which the insured may obtain description 17 of the insured’s right to receive , upon request and without 18 charge, a paper copy of the insured’s policy or endorsement by 19 mail . 20 c. (3) An internet address where the insured’s policy or 21 endorsement is posted. 22 e. The insurer, upon request and without charge, must 23 deliver a paper copy of the policy or endorsements to the 24 insured by mail. 25 5. f. The insurer must provide notice, in the format 26 preferred by the insured, of any changes to the policy or 27 endorsement, the insured’s right to obtain, upon request and 28 without charge, a paper copy of such policy or endorsement, 29 and the internet address where such policy or endorsement is 30 posted. 31 2. Nothing in this section shall be construed to affect 32 the timing or content of any notice or document required to be 33 provided or made available to any insured under applicable law. 34 EXPLANATION 35 -4- LSB 1726HC (4) 86 av/nh 4/ 6

H.F. _____ The inclusion of this explanation does not constitute agreement with 1 the explanation’s substance by the members of the general assembly. 2 This bill relates to the electronic delivery and posting of 3 insurance notices and documents. The bill provides that the 4 electronic delivery of such notices and documents by insurers 5 must meet the requirements of Code section 505B.1 as well as 6 the requirements of Code chapter 554D, which relates generally 7 to electronic transactions. 8 The bill provides that an insurance notice or document may 9 be delivered by electronic means if, before giving consent, 10 the party who is to receive the notice (an applicant, insured, 11 policyholder, or annuity contract holder) is provided with a 12 statement explaining the right to withdraw consent to such 13 delivery at any time, the types of notices and documents to 14 which consent applies, the right to have the notices and 15 documents in paper form, and the procedures to withdraw consent 16 or update the party’s electronic mail address. The insurer 17 must also notify the party annually of the party’s electronic 18 address that is on file for the party and take reasonable 19 measures to ensure that electronic delivery to the party is 20 successful. 21 If there is a change in hardware or software requirements 22 for access to or retention of electronic notices or documents, 23 the insurer must inform the party of the changes and the right 24 of the party to withdraw consent. Failure of an insurer to 25 comply with these requirements may be treated as a withdrawal 26 of consent. 27 If the insurer intends to electronically deliver additional 28 notices or documents to a party who has consented to such 29 delivery, the insurer must provide the party with a statement 30 describing what additional items will be electronically 31 delivered, and reiterate what consent means and the party’s 32 right to withdraw such consent. 33 An insurer is required to deliver a notice or document by any 34 other delivery method permitted by law if the insurer attempts 35 -5- LSB 1726HC (4) 86 av/nh 5/ 6

H.F. _____ an electronic delivery and reasonably believes the party did 1 not receive the notice or document, or the insurer becomes 2 aware that the party’s electronic mail address is no longer 3 valid. 4 An insurance producer licensed pursuant to Code chapter 522B 5 shall not be subject to civil liability for any harm or injury 6 that occurs because of a party’s consent to receive electronic 7 delivery or an insurer’s failure to electronically deliver a 8 notice or document. 9 A policy or endorsement posted on an insurer’s internet site 10 instead of being mailed or delivered must be accessible to 11 the insured and to the licensed insurance producer of record 12 for as long as the policy or endorsement is in force, must be 13 archived for a period of five years or other period required 14 by law, and must be posted in a manner that allows the insured 15 and the insurance producer to print the policy or endorsement. 16 The insurer must also provide information upon issuance of the 17 policy or upon renewal about the insured’s right to request a 18 paper copy of the policy or endorsement by mail without charge. 19 The bill provides that nothing in Code section 505B.2 shall 20 be construed to affect the timing or content of any notice 21 or document required to be provided or made available to any 22 insured under applicable law. 23 -6- LSB 1726HC (4) 86 av/nh 6/ 6