An Act relative to notices by insurance companies

194th Legislature (2025-2026) Introduced by Mike Day

Massachusetts insurers may send cancellation, renewal, and nonrenewal notices electronically, but only with the named insured's explicit consent.

Overview

Bill number/title: House Docket No. 3338, An Act relative to notices by insurance companies

Introduced: January 17, 2025 (House Docket 1123), sponsored by Representative Michael S. Day (Stoneham)

Status: Not specified in the provided materials

Purpose: To authorize insurance companies to provide cancellation, renewal, or nonrenewal notices to the named insured by electronic means, with the insured’s agreement.

Key Provisions

New authority to use electronic notices: The bill adds a new Section 187I to Chapter 175 of the General Laws. It states that, notwithstanding any other law governing cancellation, renewal, or nonrenewal of an insurance policy, an insurance company may provide such notices electronically if the named insured agrees.

Consent from named insured: Electronic notices are permissible only with the agreement of the named insured. The insurer cannot unilaterally switch to electronic notices without consent.

Effective date: The act would take effect upon passage.

Relation to existing law: The provision is explicit that it operates notwithstanding other provisions of law related to cancellation, renewal, or nonrenewal, indicating it is intended to permit electronic notices even where some regulations might require traditional notice methods.

Affected Parties

Named insureds (policyholders): Individuals whose policy names are on the contract. They would have the option to consent to electronic notices for cancellations, renewals, or nonrenewals.

Insurance companies: Insurers issuing policies in Massachusetts would gain the ability to deliver these specific notices electronically, provided the named insured consents.

Insurance providers and agents: May need to update notices, record consent, and manage electronic communications to ensure compliance.

Procedural and Timeline Aspects

Legislative process context: The bill has been introduced and filed in the Massachusetts House (House Docket 3338). A related bill was previously filed in the 2023-2024 session (House No. 981) indicating ongoing consideration of electronic notice practices.

Effective date: Immediate upon passage (no phased timeline described).

Implementation considerations: If enacted, insurers would need to maintain records of insured consent for electronic notices and ensure that notices reach insureds via the agreed electronic mechanism (e.g., email, online portal, or other electronic communications).

Practical Implications

Benefits: Potential for quicker, more reliable delivery of notices; reduced printing/mailing costs for insurers; convenience for insureds who prefer electronic communication.

Risks/Considerations: Requires valid consent and ongoing accessibility for insureds; potential issues for customers with limited electronic access or changes in contact methods; insurers may need enhanced records management and privacy safeguards.

Bottom Line

HD 3338 would authorize Massachusetts insurance companies to send cancellation, renewal, and nonrenewal notices electronically, but only with the named insured’s explicit consent. It would override conflicting laws to permit electronic notices and would take effect upon passage. The bill emphasizes consent and modernizing notice methods while preserving the insured's control over how they receive important policy communications.

Bill