Enrolled Bill Summary

House Bill 1040	House Author:  Paul
Effective:  9-1-23	Senate Sponsor:  Zaffirini

            House Bill 1040 amends the Insurance Code to authorize a business entity regulated by the Texas Department of Insurance to conduct business electronically by default, conditioned on requisite notice being provided to each other party to the business and on no such party requesting that the business be conducted in nonelectronic form, as an alternative to conducting business electronically only on the explicit agreement of each party to the business. Among other provisions, the bill does the following:

·        revises the minimum standards for electronically conducting business with consumers to reflect the default electronic delivery of a written communication to a party and to clarify the conditions under which the delivery is made;

·        requires a notice of cancellation or termination of an applicable insurance policy to be a written communication and delivered to the party electronically and in paper or another nonelectronic form; and

·        authorizes the sponsor of a health benefit plan, including a vision or dental benefit plan, to give consent on behalf of an enrolled party through a written communication delivered electronically to a party.