On December 22, 2021, New York State Governor Kathy Hochul signed Senate Bill S653A which amends the New York Insurance Law by adding Section 3458 regarding the electronic delivery of property and casualty insurance notices.

Section 3458 grants the delivery of notices and documents by electronic means – e.g., the delivery of a record via email or a website/application – the same effect as delivery by any other method required under law, including without limitation, delivery by first class mail. The foregoing would apply to all property and casualty insurance notices to be delivered through electronic means provided that:

  • The recipient affirmatively consented to electronic communications and has not withdrawn consent;
  • Before giving consent, the recipient was provided with a clear and conspicuous statement of its right to withdraw consent, the types of notices and documents to which the consent applies, the right to have a notice or document delivered in paper form, and the procedure the recipient must follow to withdraw consent to electronic communications;
  • Before giving consent, the recipient was provided with notice of the software and hardware requirements to receive electronic communications (and is thereafter kept informed of any changes to such requirements); and
  • The recipient’s manner of consent reasonably demonstrates that it can access and retain the notices and documents delivered by electronic means.

With respect to the delivery of cancellation notices, non-renewal notices and conditional renewal notices, Section 3458 also requires that the subject line and body of the electronic communication clearly and conspicuously alerts the recipient to the importance of the communication and the type of notice being delivered to such party electronically.

Before Section 3458, the New York Insurance Law permitted the delivery of notices and documents by electronic means only where the consumer gave affirmative consent and where the governing statute or regulation did not require delivery by other means (e.g., mail). Section 3458 will take effect on March 22, 2022.