AB 1131 Summary

• Authorizes insurers, agents, brokers, and other Department of Insurance-licensed persons to transmit life insurance records electronically if the recipient consents and specific requirements are met.

• Requires licensees to obtain opt-in consent from policyholders, disclose that electronic transmission is voluntary, inform recipients of their right to opt out, and provide contact information for the licensee.

• Mandates licensees maintain proof of delivery and actual receipt of electronic records, resend records by mail within five business days if delivery fails, and provide one free printed copy annually upon request.

• Prohibits insurance agents and brokers from liability for deficiencies in electronic procedures if they did not develop the procedures, were not negligent, and complied with agreed procedures.

• Requires the Department of Insurance to report by January 1, 2020, on the impact and implementation of electronic transmission authorization for insurance renewals and notices.