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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of entities regulated by the Texas |
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Department of Insurance to conduct business electronically. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 35.003, Insurance Code, is amended to |
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read as follows: |
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Sec. 35.003. ELECTRONIC TRANSACTIONS AUTHORIZED. Subject |
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to Section 35.004, a [A] regulated entity may conduct business |
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electronically to the same extent that the entity is authorized to |
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conduct business otherwise if before the conduct of business: |
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(1) each party to the business agrees to conduct the |
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business electronically; or |
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(2) each other party to the business has been given |
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notice by the entity that the business will be conducted |
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electronically and has not requested that the business be conducted |
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in nonelectronic form. |
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SECTION 2. Sections 35.004(c) and (d), Insurance Code, are |
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amended to read as follows: |
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(c) A written communication may be delivered by electronic |
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means to a party by a regulated entity under this section if: |
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(1) the party: |
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(A) affirmatively consented to delivery by |
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electronic means and has not withdrawn the consent; or |
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(B) if affirmative consent is not sought, has not |
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requested that written communication be delivered to the party in |
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paper or another nonelectronic form instead of by electronic means; |
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(2) the party, before giving consent or receiving |
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written communication by electronic means, is provided with a clear |
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and conspicuous statement informing the party of: |
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(A) any right or option the party may have for the |
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written communication to be provided or made available in paper or |
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another nonelectronic form; |
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(B) the right of the party to withdraw consent |
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under this section or to request written communication be delivered |
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to the party in nonelectronic form, if the party's affirmative |
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consent is not sought, and any conditions or consequences imposed |
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if consent is withdrawn or delivery in nonelectronic form is |
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requested; |
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(C) whether the party's consent to delivery by |
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electronic means or the party's request or the absence of the |
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party's request for delivery in nonelectronic form applies: |
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(i) only to a specific transaction for |
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which the written communication must be given; or |
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(ii) to identified categories of written |
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communications that may be delivered [by electronic means] during |
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the course of the relationship between the party and the regulated |
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entity; |
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(D) the means[, after consent is given,] by which |
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a party may obtain a paper copy of a written communication delivered |
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by electronic means; and |
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(E) the procedure a party must follow to: |
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(i) withdraw consent under this section or |
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to otherwise request delivery of written communication in |
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nonelectronic form, as applicable; and |
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(ii) update information needed for the |
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regulated entity to contact the party electronically; and |
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(3) the party: |
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(A) before giving consent or receiving written |
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communication by electronic means, is provided with a statement |
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identifying the hardware and software requirements for the party's |
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access to and retention of a written communication delivered by |
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electronic means; and |
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(B) if affirmative consent is sought, consents |
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electronically or confirms consent electronically in a manner that |
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reasonably demonstrates that the party can access a written |
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communication in the electronic form used to deliver the |
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communication. |
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(d) After consent of the party is given or the opportunity |
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to request delivery of written communication in nonelectronic form |
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is given, as applicable, in the event a change in the hardware or |
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software requirements to access or retain a written communication |
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delivered by electronic means creates a material risk that the |
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party may not be able to access or retain a subsequent written |
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communication to which the consent applies, the regulated entity |
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shall: |
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(1) provide the party with a statement: |
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(A) identifying the revised hardware and |
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software requirements for access to and retention of a written |
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communication delivered by electronic means; and |
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(B) disclosing the right of the party to withdraw |
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consent or to otherwise request delivery in nonelectronic form, as |
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applicable, without the imposition of any condition or consequence |
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that was not disclosed under Subsection (c)(2)(B); and |
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(2) comply with Subsection (c)(3). |
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SECTION 3. Section 35.0041(a), Insurance Code, is amended |
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to read as follows: |
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(a) The plan sponsor of a health benefit plan, including a |
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vision or dental benefit plan, may, on behalf of a party enrolled in |
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the plan, give [the] consent under [required by] Section |
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35.004(c)(1)(A) [35.004(c)(1)]. |
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SECTION 4. Sections 35.003 and 35.004, Insurance Code, as |
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amended by this Act, apply only to business conducted on or after |
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the effective date of this Act. Business conducted before the |
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effective date of this Act is governed by the law in effect on the |
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date the business was conducted, and that law is continued in effect |
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for that purpose. |
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SECTION 5. This Act takes effect September 1, 2023. |