House File 605 - Introduced HOUSE FILE 605 BY COMMITTEE ON COMMERCE (SUCCESSOR TO HSB 182) A BILL FOR An Act relating to insurance notices and documents delivered 1 by electronic means to a consumer that purchases portable 2 electronics insurance in a retail transaction. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2229HV (2) 88 ko/rn

H.F. 605 Section 1. Section 505B.1, subsection 1, paragraph a, 1 unnumbered paragraph 1, Code 2019, is amended to read as 2 follows: 3 “Delivered or deliver or delivery by electronic means” means 4 any of the following: 5 Sec. 2. Section 505B.1, Code 2019, is amended by adding the 6 following new subsection: 7 NEW SUBSECTION . 4A. a. For purposes of this subsection, 8 “consumer” and “portable electronics insurance” mean the same as 9 defined in section 522E.1. 10 b. Notwithstanding subsection 4, affirmative consent from 11 a party to have notices and documents delivered by electronic 12 means for portable electronics insurance sold pursuant to 13 chapter 522E is obtained if a consumer provides an electronic 14 mail address and the consumer is provided at the point of 15 sale, or prior to the point of sale, a conspicuously located 16 disclosure advising the consumer that the consumer is giving 17 affirmative consent. The disclosure must also advise the 18 consumer of the consumer’s right to receive a paper copy of 19 notices and documents and of the process by which the consumer 20 can opt out of delivery by electronic means. 21 Sec. 3. Section 522E.1, subsection 2, Code 2019, is amended 22 to read as follows: 23 2. “Consumer” means a person who purchases portable 24 electronics or portable electronics insurance in a retail 25 transaction. 26 Sec. 4. Section 522E.1, Code 2019, is amended by adding the 27 following new subsection: 28 NEW SUBSECTION . 2A. “Delivered or deliver by electronic 29 means” means the same as defined in section 505B.1. 30 Sec. 5. Section 522E.9, Code 2019, is amended by adding the 31 following new subsection: 32 NEW SUBSECTION . 7. In order for all portable electronic 33 insurance notices and documents to be delivered by electronic 34 means to the consumer affirmative consent shall be obtained 35 -1- LSB 2229HV (2) 88 ko/rn 1/ 3

H.F. 605 pursuant to section 505B.1, subsection 4A. 1 Sec. 6. Section 522E.13, subsections 5 and 6, Code 2019, are 2 amended to read as follows: 3 5. If a portable electronics insurance policy is terminated 4 by the licensed portable electronics vendor that is the 5 policyholder, the portable electronics vendor shall deliver 6 by mail or deliver by electronic means a written notice 7 to each enrolled consumer advising the enrolled consumer 8 of the termination of the policy and the effective date of 9 termination. The written notice shall be mailed or delivered 10 by the portable electronics vendor to the enrolled consumer 11 at least thirty calendar days prior to the termination. 12 However, if the notice is not sent within thirty calendar 13 days, enrollment shall continue until thirty calendar days 14 from the date the portable electronics vendor sends notice of 15 termination to the enrolled consumer or until a new portable 16 electronics insurance policy is in effect. 17 6. Whenever notice or correspondence with respect to a 18 policy of portable electronics insurance is required pursuant 19 to this section , it shall be in writing and sent within the 20 notice period required pursuant to this section . Notices 21 and correspondence shall be sent to the licensed portable 22 electronics vendor that is the policyholder at the portable 23 electronics vendor’s mailing or electronic mail address 24 specified for that purpose and to its affected enrolled 25 consumers’ last known mailing or electronic mail addresses on 26 file with the insurer or the portable electronics vendor. All 27 notices and documents that are delivered by electronic means 28 shall comply with section 505B.1, except for the provisions in 29 subsection 4. The insurer or portable electronics vendor shall 30 maintain proof that the notice or correspondence was sent for 31 not less than three years after that notice or correspondence 32 was sent. 33 EXPLANATION 34 The inclusion of this explanation does not constitute agreement with 35 -2- LSB 2229HV (2) 88 ko/rn 2/ 3

H.F. 605 the explanation’s substance by the members of the general assembly. 1 This bill relates to insurance notices and documents 2 delivered by electronic means to a consumer that purchases 3 portable electronics insurance in a retail transaction. 4 Current law requires that notices or correspondence related 5 to a policy of portable electronics insurance be in writing and 6 that the notices or correspondence be delivered or mailed. 7 The bill provides that notices and correspondence related 8 to a policy of portable electronics insurance may be delivered 9 by electronic means if at the time of purchase the consumer 10 provides an electronic mail address, and the consumer is 11 advised in a conspicuous disclosure, prior to or at the point 12 of sale, that by providing the electronic mail address, the 13 consumer is giving affirmative consent for insurance notices 14 and correspondence to be delivered by electronic means. 15 In addition, the consumer must be provided a conspicuous 16 disclosure advising the consumer of the consumer’s right to 17 have the notice or document in paper form, and of the right to 18 cancel the consumer’s consent. The bill exempts a licensed 19 portable electronics vendor that is the policyholder and the 20 vendor’s endorsee from the other provisions of Code section 21 505B.1(4). 22 The bill requires that an insurer, a vendor, and a vendor’s 23 endorsee comply with Code chapter 505B (insurance notices and 24 documents —— electronic delivery and posting), except for 25 subsection 4, for all notices and correspondence related to a 26 policy of portable electronics insurance that are delivered by 27 electronic means. 28 -3- LSB 2229HV (2) 88 ko/rn 3/ 3