California Governor Jerry Brown has signed a bill allowingpolicy-renewal notices and disclosures to be sentelectronically.

According to the bill's (SB 251) summary, coverages affected bythe bill include workers' compensation, automobile and specifiedproperty insurance. The mandatory offering of earthquake insurancewith residential property coverage may also be made electronically,the summary states.

The Association of California Insurance Companies (ACIC), partof the Property Casualty Insurers Association of America, supportedthe new law, stating, “With the stroke of his pen, CaliforniaGovernor Jerry Brown just modernized California's Insurance Code sonow Californians can use their laptop or smartphone to manage theirinsurance.”

Armand Feliciano, ACIC vice president, adds in a statement,“PCs, smartphones and tablets are changing how people manage theirfinances. Insurance customers are shopping online and increasinglythey want their policies serviced online. Insurers want to meetcustomers' preferences but California was one of a few states withan antiquated law preventing electronic delivery of renewaldocuments.”

ACIC public affiars director Nicole Mahrt Ganley notes thatCalifornia previously allowed some use of electronic documents, buthad an exemption from the Uniform Electronic Transfer Act forrenewal document. “So now a new system is in place with a lot ofconsumer protections that will allow electronic renewals,” shesays.

ACIC notes that California joins seven other states that haveenacted legislation in 2013 allowing electronic delivery ofinsurance documents.