Code of Vermont Rules
Agency 21 - DEPARTMENT OF FINANCIAL REGULATION
Sub-Agency 020 - INSURANCE DIVISION
Chapter 067 - REGULATION I-2014-01 - ELECTRONIC INSURANCE NOTICES
Section 21 020 067 - REGULATION I-2014-01 - ELECTRONIC INSURANCE NOTICES
Universal Citation: VT Code of Rules 21 020 067
Current through August, 2024
Section 1 Authority
This regulation is promulgated pursuant to the authority granted by 8 V.S.A. §§ 15, 3666 and chapters 105, 113, and 128.
Section 2 Purpose
The purpose of this regulation is to set forth rules and procedural requirements which the Commissioner deems necessary to permit certain insurers to send certain notices to policyholders by electronic means.
Section 3 Severability Clause
If any provision of these regulations or the application thereof to any person or circumstance, is held invalid, such invalidity shall not affect other provisions or applications of these regulations which can be given effect without the invalid provision or application, and to that end the provisions of these regulations are severable.
Section 4 Definitions
A. "Delivered by electronic means" includes:
(1) Delivery to an electronic mail address at
which a party has consented to receive notice; and
(2) Posting on an electronic network, or site
accessible via the internet, mobile application, computer, mobile device,
tablet, or any other electronic device, together with separate notice to a
party sent to the electronic mail address at which the party has consented to
receive notice of the posting.
B. "Party" means any recipient of any notice
required as part of an insurance transaction, including but not limited to an
applicant, an insured, or a policyholder.
Section 5 Delivery of Notices by Electronic Means
A. Subject to subsection (C) of this
section, any notice to a party required under section
3880,
3881,
4224,
4225,
4712, or
4713 of
title 8 V.S.A. may be but is not required to be delivered by electronic means,
provided the process used to obtain consent of the party to have notice
delivered by electronic means meets the requirements of 9 V.S.A. chapter 20
(the Uniform Electronic Transactions Act).
B. Delivery of a notice pursuant to
subsection (A) of this section shall be considered equivalent to any delivery
method required under section
3883,
4226, or
4714 of title
8 V.S.A., including delivery by first-class mail, certified mail, or
certificate of mailing.
C. A notice
may be delivered by electronic means by an insurer to a party under this
section if:
(1) The party has affirmatively
consented to such method of delivery and not subsequently withdrawn
consent;
(2) The party, before
giving consent, is provided with a clear and conspicuous statement informing
the party of:
(i) The right of the party to
have the notice provided or made available in paper or another nonelectronic
form at no additional cost;
(ii)
The right of the party to withdraw consent to have notice delivered by
electronic means, at any time, and any conditions or consequences imposed in
the event consent is withdrawn;
(iii) Whether the party's consent applies:
(a) Only to the particular transaction as to
which the notice must be given; or
(b) To identified categories of notices that
may be delivered by electronic means during the course of the party's
relationship with the insurer;
(iv) How, after consent is given, the party
may obtain a paper copy of a notice delivered by electronic means at no
additional cost; and
(v) The
procedures the party must follow to withdraw consent to have notice delivered
by electronic means and to update information needed to contact the party
electronically;
(3) The
party, before giving consent:
(i) Is provided
with a statement of the hardware and software requirements for access to and
retention of a notice delivered by electronic means as to which the party has
given consent; and
(ii) Consents
electronically and confirms consent electronically, in a manner that reasonably
demonstrates that the party can access information in the electronic form that
will be used for notices delivered by electronic means as to which the party
has given consent; and
(4) After consent of the party is given, the
insurer, in the event a change in the hardware or software requirements needed
to access or retain a notice delivered by electronic means creates a material
risk that the party will not be able to access or retain a subsequent notice to
which the consent applies:
(i) Provides the
party with a statement of:
(a) The revised
hardware and software requirements for access to and retention of a notice
delivered by electronic means; and
(b) A revised statement required by
subdivision (2) of this subsection; and
(ii) The party affirmatively consents to
continued delivery of notices by electronic means.
D. If a provision of chapter 105,
113, or 128 of title 8 V.S.A. requiring notice to be provided to a party
expressly requires verification or acknowledgement of receipt of the notice,
the notice may be delivered by electronic means only if the method used
provides for verification or acknowledgement of receipt. Upon notification to
the insurer that the electronic notice was not deliverable, the insurer shall
send a paper copy of the notice as otherwise required by law.
E. The legal effectiveness, validity, or
enforceability of any contract or policy of insurance may not be made
contingent upon obtaining electronic consent or confirmation of consent of a
party in accordance with subdivision (C)(3)(ii) of this section.
F. Withdrawal of consent:
(1) A withdrawal of consent by a party does
not affect the legal effectiveness, validity, or enforceability of a notice
delivered by electronic means to the party before the withdrawal of consent is
effective.
(2) A withdrawal of
consent by a party is effective within 30 days after receipt of the withdrawal
by the insurer.
(3) Failure to
comply with subdivision (C)(4) of this section shall be treated as a withdrawal
of consent for purposes of this section.
G. A party who does not consent to delivery
of notices by electronic means under subsection (A) of this section or who
withdraws his or her consent shall not be subjected to any additional fees or
costs for having notices provided or made available in paper or another
nonelectronic form.
H. This section
shall not be construed to modify, limit, or supersede the provisions of the
federal Electronic Signatures in Global and National Commerce Act, 15 U.S.C.
chapter 96, as amended.
Section 6 Interpretation
The delivery of notice in accordance with Section 5 of this regulation is intended and shall be construed to meet the requirements of Department Insurance Regulation 78-01, Section 1, as revised.
Section 7 Effective Date
This regulation shall become effective September 18, 2015.
Disclaimer: These regulations may not be the most recent version. Vermont may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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