AB 455 — Authorizes the electronic delivery of certain notices and documents relating to policies of insurance. (BDR 57-112)

(ReprintedAssembly withBill amendmentsNo. adopted on April 20, 2017) FIRST REPRINT A.B.

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455–COMMITTEE ON C OMMERCE AND L ABOR M ARCH 27, 2017 ____________ Referred to Committee on Transportation SUMMARY—Authorizes the electronic delivery of certain notices and documents relating to policies of insurance.

(BDR 57-112) FISCAL NOTE:

Effect on Local Government:

No.

Effect on the State:

No.

~ EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

Existing law authorizes a party to agree to conduct transactions by electronic means and generally grants legal recognition to electronic records and electronic signatures.

(NRS 719.220, 719.240) Existing law also authorizes an insurer to provide evidence of insurance for the operation of a motor vehicle in an electronic formatallows upona thenotice requestor other document required by law to be provided as part of thean insured.(1) insurance transaction or which serves as evidence of insurance to be delivered by electronic means in certain circumstances;

(NRSand 690B.023)(2) Sectiondeems 6a ofdelivery thisby bill:electronic means to satisfy a requirement for delivery in physical form.

(1) allows a notice or other document required by law to be provided as part of an insurance transaction or which serves as evidence of insurance to be delivered by means to satisfy a requirement for delivery in physical form.

(1) requires the delivery by electronic means of a notice or other document which requires verification or acknowledgmentor of receipt to be in an electronic form that allows for verification be delivered by any other delivery method authorized by law if a verification oro acknowledgment of receiptreceipt; is not received within 3 days after electronic delivery.

and (2) requires such a notice or other document ton be delivered by any other delivery method authorized by law if a verification or acknowledgment of receipt is not received within 3 days after electronic delivery.

Section 9 of this bill provides that a notice or other document delivered by - *AB455_R1* – 2 – electronic means before consent to delivery by electronic means is withdrawn is not affectedis byeffective. the withdrawal of consent and establishes when a withdrawal of consent party for delivery by electronic means of certain notices or documents beforewith a October 1, 2017, to continue such delivery if the insurer provides the party with certain statements.

Section 1210 of this bill allows an insurer towho posthas aan standardagreement policywith ofa propertyparty orfor casualtydelivery insuranceby orelectronic ameans standard endorsement of suchcertain anotices policyor ondocuments itsbefore InternetOctober website1, rather2017, thanto mailingcontinue orsuch deliveringdelivery the policy or endorsement if the insurer satisfiesprovides certain conditions.n personally identifiable information and the THEparty PEOPLEwith OFcertain THEstatements. STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 12 of this bill allows an insurer to post a standard policy of property or casualty insurance or a standard endorsement of such a policy on its Internet website rather than mailing or delivering the policy or endorsement if the policy or endorsement does not contain personally identifiable information and the insurer satisfies certain conditions.

- 79th Session (2017) – 2 – EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Do not apply to a notice or other document delivered by an insurer in an electronic form before October 1, 2017, to a party who consented before that date to receive the notice or other document in an electronic form which was authorized by law at the time of delivery;

and form which was authorized by law at 2.

A notice to a party or any other document which is required by law to be provided as part of an insurance - *AB455_R1* – 3 – transaction or which serves as evidence of insurance coverage may be delivered by electronic means if such delivery satisfies the requirements of chapter 719 of NRS and section 7 of this act.

The delivery of a notice or other document pursuant to subsection 1 is deemed to satisfy any requirement of this Code to - 79th Session (2017) – 3 – deliver a notice or other document in physical form, including, without limitation, by:

(c) Certified mail;

and (4) The procedures the party must follow to withdraw consent to delivery by electronic means and to update the ele(c) The party, after being provided with a statement of the hardware and software requirements for access to and retention of a notice or other document delivered by electronic mailmeans, addressconsents or confirms consent electronically in a manner that reasonably demonstrates that the party can access information in the electronic form that will be used for delivery by electronic means of notices or other documents to which the party;party has given consent;

(c) The party, after being provided with a statement of the hardware and software requirements for access to and retention of a notice or other document delivered by electronic means, consents or confirms consent electronically in a manner that reasonably demonstrates that the party can access information in the electronic form that will be used for delivery by electronic means of notices or other documents to which the party has given consent;

and - *AB455_R1* – 4 – (e) Upon a change in the hardware or software requirements for access to and retention of a notice or other document delivered by electronic means which occurs after the party has consented to - 79th Session (2017) – 4 – delivery by electronic means which creates a material risk that the party will not be able to access or retain a subsequent notice or other document, the insurer provides the party with:

(1) A statement that describes the revised hardware or software requirements for access to and retention of a notice or other documents delivered by electronic means and the right of the party to withdraw consent without the imposition of any condition or consequence not described in the statement initially provided to the party pursuant to paragraph (b);

1.notice or other document and has a reasonable basis to believe that the notice or other document was not received by the party;

The insurer attempts to deliver by electronic means a notice or other document and has a reasonable basis to believe that the notice or other document was not received by the party;

- *AB455_R1* – 5 – 3.

The failure of an insurer to comply with the provisions of paragraph (e) of subsection 1 of section 7 of this act or section 10 - 79th Session (2017) – 5 – of this act is deemed to constitute a withdrawal of consent to delivery by electronic means unless a party elects to continue to grant consent.

If a party consented to the delivery by electronic means of certain notices or documents by an insurer before October 1, 2017, the insurer may continue to deliver by electronic means such notices or documents if, before delivering by electronic means such notices or documents, the insurer provides the party with:

3.construed to modify, limit or supersede the federal Electronicall be Signatures in Global and National Commerce Act, 15 U.S.C.

Nothing§§ inet sectionsseq. 2 to 12, inclusive, of this act shall be construed to modify, limit or supersede the federal Electronic Signatures in Global and National Commerce Act, 15 U.S.C.

§§ 7001 et seq.

- *AB455_R1*79th Session (2017) – 6 – 2.