| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the authority of entities regulated by the Texas |
|
|
Department of Insurance to conduct business electronically. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 35.003, Insurance Code, is amended to |
|
|
read as follows: |
|
|
Sec. 35.003. ELECTRONIC TRANSACTIONS AUTHORIZED. Subject |
|
|
to Section 35.004, a [A] regulated entity may conduct business |
|
|
electronically to the same extent that the entity is authorized to |
|
|
conduct business otherwise if before the conduct of business: |
|
|
(1) each party to the business agrees to conduct the |
|
|
business electronically; or |
|
|
(2) each other party to the business has been given |
|
|
notice by the entity that the business will be conducted |
|
|
electronically and has not requested that the business be conducted |
|
|
in nonelectronic form. |
|
|
SECTION 2. Sections 35.004(c) and (d), Insurance Code, are |
|
|
amended to read as follows: |
|
|
(c) A written communication may be delivered by electronic |
|
|
means to a party by a regulated entity under this section if: |
|
|
(1) the party: |
|
|
(A) affirmatively consented to delivery by |
|
|
electronic means and has not withdrawn the consent; or |
|
|
(B) if affirmative consent is not sought, has not |
|
|
requested that written communication be delivered to the party in |
|
|
paper or another nonelectronic form instead of by electronic means; |
|
|
(2) the party, before giving consent or receiving |
|
|
written communication by electronic means, is provided with a clear |
|
|
and conspicuous statement informing the party of: |
|
|
(A) any right or option the party may have for the |
|
|
written communication to be provided or made available in paper or |
|
|
another nonelectronic form; |
|
|
(B) the right of the party to withdraw consent |
|
|
under this section or to request written communication be delivered |
|
|
to the party in nonelectronic form, if the party's affirmative |
|
|
consent is not sought, and any conditions or consequences imposed |
|
|
if consent is withdrawn or delivery in nonelectronic form is |
|
|
requested; |
|
|
(C) whether the party's consent to delivery by |
|
|
electronic means or the party's request or the absence of the |
|
|
party's request for delivery in nonelectronic form applies: |
|
|
(i) only to a specific transaction for |
|
|
which the written communication must be given; or |
|
|
(ii) to identified categories of written |
|
|
communications that may be delivered by electronic means during the |
|
|
course of the relationship between the party and the regulated |
|
|
entity; |
|
|
(D) the means[, after consent is given,] by which |
|
|
a party may obtain a paper copy of a written communication delivered |
|
|
by electronic means; and |
|
|
(E) the procedure a party must follow to: |
|
|
(i) withdraw consent under this section or |
|
|
to otherwise request delivery of written communication in |
|
|
nonelectronic form, as applicable; and |
|
|
(ii) update information needed for the |
|
|
regulated entity to contact the party electronically; and |
|
|
(3) the party: |
|
|
(A) before giving consent or receiving written |
|
|
communication by electronic means, is provided with a statement |
|
|
identifying the hardware and software requirements for the party's |
|
|
access to and retention of a written communication delivered by |
|
|
electronic means; and |
|
|
(B) if affirmative consent is sought, consents |
|
|
electronically or confirms consent electronically in a manner that |
|
|
reasonably demonstrates that the party can access a written |
|
|
communication in the electronic form used to deliver the |
|
|
communication. |
|
|
(d) After consent of the party is given or the opportunity |
|
|
to request delivery of written communication in nonelectronic form |
|
|
is given, as applicable, in the event a change in the hardware or |
|
|
software requirements to access or retain a written communication |
|
|
delivered by electronic means creates a material risk that the |
|
|
party may not be able to access or retain a subsequent written |
|
|
communication to which the consent applies, the regulated entity |
|
|
shall: |
|
|
(1) provide the party with a statement: |
|
|
(A) identifying the revised hardware and |
|
|
software requirements for access to and retention of a written |
|
|
communication delivered by electronic means; and |
|
|
(B) disclosing the right of the party to withdraw |
|
|
consent or to otherwise request delivery in nonelectronic form, as |
|
|
applicable, without the imposition of any condition or consequence |
|
|
that was not disclosed under Subsection (c)(2)(B); and |
|
|
(2) comply with Subsection (c)(3). |
|
|
SECTION 3. Section 35.003, Insurance Code, as amended by |
|
|
this Act, applies only to business conducted on or after the |
|
|
effective date of this Act. Business conducted before the effective |
|
|
date of this Act is governed by the law in effect on the date the |
|
|
business was conducted, and that law is continued in effect for that |
|
|
purpose. |
|
|
SECTION 4. This Act takes effect September 1, 2021. |