House Study Bill 182 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON CARLSON) 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 2229YC (6) 88 ko/rn

H.F. _____ 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 by electronic means” means any of the 4 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” , “endorsee” , “portable electronics insurance” , and 9 “portable electronics vendor” mean the same as defined in 10 section 522E.1. 11 b. Notwithstanding subsection 4, a consumer who, at the 12 time of sale provides an electronic mail address to a portable 13 electronics vendor or the endorsee of a portable electronics 14 vendor, shall be deemed to have given affirmative consent for 15 all portable electronic insurance notices and documents to be 16 delivered by electronic means to the consumer. 17 c. A portable electronics vendor or endorsee shall, at the 18 time of sale, advise a consumer in writing that by providing 19 an electronic mail address the consumer is giving affirmative 20 consent for all portable electronic insurance notices and 21 documents to be delivered by electronic means. The portable 22 electronics vendor or endorsee shall also advise the consumer 23 in writing of the process by which the consumer may obtain a 24 paper copy of notices or documents, and the process by which 25 the consumer can opt out of having notices and documents 26 delivered by electronic means. 27 Sec. 3. Section 522E.1, subsection 2, Code 2019, is amended 28 to read as follows: 29 2. “Consumer” means a person who purchases portable 30 electronics or portable electronics insurance in a retail 31 transaction. 32 Sec. 4. Section 522E.1, Code 2019, is amended by adding the 33 following new subsection: 34 NEW SUBSECTION . 2A. “Delivered or deliver by electronic 35 -1- LSB 2229YC (6) 88 ko/rn 1/ 4

H.F. _____ means” means the same as defined in section 505B.1. 1 Sec. 5. Section 522E.9, Code 2019, is amended by adding the 2 following new subsection: 3 NEW SUBSECTION . 7. Affirmative consent from a consumer for 4 all portable electronic insurance notices and documents to be 5 delivered by electronic means to the consumer is obtained by 6 a portable electronics vendor or endorsee pursuant to section 7 505B.1, subsection 4A. 8 Sec. 6. Section 522E.13, subsections 5 and 6, Code 2019, are 9 amended to read as follows: 10 5. If a portable electronics insurance policy is terminated 11 by the licensed portable electronics vendor that is the 12 policyholder, the portable electronics vendor shall mail , 13 deliver, or deliver by electronic means, a written notice 14 to each enrolled consumer advising the enrolled consumer 15 of the termination of the policy and the effective date of 16 termination. The written notice shall be mailed , delivered, 17 or delivered by electronic means by the portable electronics 18 vendor to the enrolled consumer at least thirty calendar days 19 prior to the termination. However, if If the notice is not 20 sent within mailed, delivered, or delivered by electronic 21 means thirty calendar days prior to the termination of the 22 policy , enrollment shall continue until thirty calendar days 23 from the date the portable electronics vendor sends notice 24 of termination by mail or delivery or notice is delivered by 25 electronic means to the enrolled consumer , or until a new 26 portable electronics insurance policy is in effect. 27 6. Whenever If notice or correspondence with respect to a 28 policy of portable electronics insurance is required pursuant 29 to this section , it the notice or correspondence shall be in 30 writing and sent within the notice period required pursuant 31 to this section . Notices and Notice or correspondence shall 32 be sent to the licensed portable electronics vendor that 33 is the policyholder at the portable electronics vendor’s 34 mailing address , or delivered by electronic means to the 35 -2- LSB 2229YC (6) 88 ko/rn 2/ 4

H.F. _____ electronic mail address, specified by the licensed portable 1 electronic vendor for that purpose and to its each of the 2 licensed portable electronic vendor’s affected enrolled 3 consumers’ consumer’s last known mailing addresses address 4 or electronic mail address on file with the insurer or the 5 portable electronics vendor. All notices and documents that 6 are delivered by electronic means shall comply with section 7 505B.1, except for the provisions in subsection 4. The insurer 8 or portable electronics vendor shall maintain proof that the 9 notice or correspondence was sent for not less than three years 10 after that notice or correspondence was sent. 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 insurance notices and documents 15 delivered by electronic means to a consumer that purchases 16 portable electronics insurance in a retail transaction. 17 Current law requires that notices or correspondence 18 related to a policy of portable electronics insurance be in 19 writing and that the notices or correspondence be mailed. 20 This requirement applies to notices or correspondence from a 21 portable electronics insurer (insurer) to a licensed portable 22 electronics vendor that is the policyholder (vendor), from 23 an insurer to an enrolled consumer, and from a vendor to an 24 enrolled consumer. 25 The bill provides that notices and correspondence related 26 to a policy of portable electronics insurance may be delivered 27 by electronic means if at the time of purchase the consumer 28 provides an electronic mail address, and the vendor or the 29 vendor’s endorsee advises the consumer in writing that by 30 providing the electronic mail address, the consumer is giving 31 affirmative consent for insurance notices and correspondence 32 to be delivered by electronic means. In addition, the vendor 33 or the vendor’s endorsee must provide the consumer with a 34 clear and conspicuous statement advising the consumer of the 35 -3- LSB 2229YC (6) 88 ko/rn 3/ 4

H.F. _____ consumer’s right to have the notice or document in paper form, 1 and of the right to cancel the consumer’s consent. The bill 2 exempts the vendor and the vendor’s endorsee from the other 3 required advisements to the consumer as required in Code 4 section 505B.1(4). 5 The bill requires that an insurer, a vendor, and a vendor’s 6 endorsee comply with Code chapter 505B (insurance notices and 7 documents —— electronic delivery and posting), except for 8 subsection 4, for all notices and correspondence related to a 9 policy of portable electronics insurance that are delivered by 10 electronic means. 11 -4- LSB 2229YC (6) 88 ko/rn 4/ 4