California to Allow Electronic Documents for Renewals

California Governor Jerry Brown has signed a bill allowing policy-renewal notices and disclosures to be sent electronically.

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

The Association of California Insurance Companies (ACIC), part of the Property Casualty Insurers Association of America, supported the new law, stating, “With the stroke of his pen, California Governor Jerry Brown just modernized California's Insurance Code so now Californians can use their laptop or smartphone to manage their insurance.”

Armand Feliciano, ACIC vice president, adds in a statement, “PCs, smartphones and tablets are changing how people manage their finances. Insurance customers are shopping online and increasingly they want their policies serviced online. Insurers want to meet customers' preferences but California was one of a few states with an antiquated law preventing electronic delivery of renewal documents.”

ACIC public affiars director Nicole Mahrt Ganley notes that California previously allowed some use of electronic documents, but had an exemption from the Uniform Electronic Transfer Act for renewal document. “So now a new system is in place with a lot of consumer protections that will allow electronic renewals,” she says.

ACIC notes that California joins seven other states that have enacted legislation in 2013 allowing electronic delivery of insurance documents.