House Study Bill 637 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON LUNDGREN) A BILL FOR An Act relating to electronic delivery of certain insurance 1 notices and documents. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5626YC (1) 89 ko/rn

H.F. _____ Section 1. Section 505B.1, Code 2022, is amended by adding 1 the following new subsections: 2 NEW SUBSECTION . 11A. a. Notwithstanding any provision of 3 this section to the contrary, an employer policyholder of a 4 group health plan may consent to electronic delivery of notices 5 and documents on behalf of its covered employees. For such 6 consent to be effective for a particular covered employee, 7 the employee must be able to effectively access the notices 8 and documents delivered by electronic means at any location 9 the employee is reasonably expected to perform the employee’s 10 duties, and such access must be an integral part of those 11 duties. 12 b. Each covered employee shall be provided with a clear and 13 conspicuous written statement informing the employee of all of 14 the following: 15 (1) The right of the employee to have notices and documents 16 provided or made available in paper form. 17 (2) The right of the employee to withdraw consent to have 18 notices and documents delivered by electronic means and any 19 conditions or consequences imposed in the event consent is 20 withdrawn. 21 (3) Whether the consent applies as follows: 22 (a) Only to the particular transaction as to which the 23 notice or document must be provided. 24 (b) To notices of cancellation, nonrenewal, or termination. 25 (c) To other identified categories of notices and documents 26 that may be delivered by electronic means during the time the 27 employee is a covered employee. 28 (4) The means, after consent is given by the employer 29 policyholder, by which the employee may obtain a paper copy of 30 a notice or document delivered by electronic means. 31 (5) The procedure the employee must follow to withdraw 32 consent to have a notice or document delivered by electronic 33 means and to update information needed to contact the employee 34 electronically. 35 -1- LSB 5626YC (1) 89 ko/rn 1/ 3

H.F. _____ NEW SUBSECTION . 11B. a. Notwithstanding any provision of 1 this section to the contrary, the issuer of a health insurance 2 policy or contract may provide a group or individual insurance 3 policy or contract electronically to a party without the 4 affirmative consent of the party if the issuer mails written 5 notice to the party describing all of the following: 6 (1) How to access the policy or contract electronically. 7 (2) That a paper form of the policy or contract may be 8 requested at any time. 9 (3) How to request a copy of the paper form of the policy 10 or contract. 11 (4) That the paper form of the policy or contract will be 12 provided free of charge to the party. 13 b. Notwithstanding any provision of this section to the 14 contrary, the issuer of a health insurance policy or contract 15 that receives a request from a party for a paper form of a 16 policy or contract shall provide the copy free of charge to the 17 party as soon as practicable but no later than fifteen calendar 18 days after the date that the issuer receives the party’s 19 request. 20 EXPLANATION 21 The inclusion of this explanation does not constitute agreement with 22 the explanation’s substance by the members of the general assembly. 23 This bill is related to electronic delivery of certain 24 insurance notices and documents. 25 The bill allows an employer policyholder of a group health 26 plan to consent to electronic delivery of notices and documents 27 (documents) on behalf of its covered employees (employee). For 28 the consent to be effective for a particular employee, the 29 employee must be able to effectively access documents delivered 30 electronically at any location the employee is reasonably 31 expected to perform their duties, and access must be an 32 integral part of those duties. Each employee must be provided 33 with a written statement informing them of specific rights as 34 detailed in the bill. 35 -2- LSB 5626YC (1) 89 ko/rn 2/ 3

H.F. _____ The bill provides that the issuer of a health insurance 1 policy or contract (issuer) may provide a group or individual 2 insurance policy or contract electronically to a party without 3 the affirmative consent of the party if the issuer mails 4 written notice to the party describing the requirements as 5 detailed in the bill. The bill requires that an issuer that 6 receives a request from a party for a paper form of a policy 7 or contract must provide the copy free of charge no later than 8 15 days after the date that the issuer receives the party’s 9 request. 10 -3- LSB 5626YC (1) 89 ko/rn 3/ 3