Electronic transactions: exceptions.

Existing law generally permits parties to contract to conduct transactions by electronic means. Existing law excepts specific transactions from this permission, including various provisions regarding insurance. This bill would remove specified insurance provisions from the exception to the general authorization that parties may contract to conduct transactions by electronic means. This bill would also provide that with regard to certain transactions relating to automobile insurance, the insurer may not deliver specified documents electronically unless the insured or applicant for insurance began the transaction electronically. Existing law generally requires, unless otherwise provided, that any required notice related to insurance transactions be made by mail, as specified. This bill would authorize any required notice related to certain types of insurance on risks or operations in California to be made electronically with the consent of the parties, as specified. This bill would require an insurer to maintain a system for electronically confirming a policyholder's decision to opt in to an agreement to conduct transactions electronically and a system that will allow the policyholder to electronically opt out of the agreement to conduct business electronically, as specified. This bill would require the insurer to maintain the electronic records for the same amount of time the insurer would be required to maintain those records if the records were in written form. Existing law requires insurers to pay certain covered claims by check or draft, as specified. This bill would generally allow an insurer, with the consent of the insured, to pay covered claims by an electronic funds transfer, as specified. This bill would prohibit an insurer from requiring an insured to consent to payment by an electronic funds transfer, as specified.