(a) As used in this section, the following terms have the following meanings:

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Terms Used In Alabama Code 27-24-19.2

  • Contract: A legal written agreement that becomes binding when signed.
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • following: means next after. See Alabama Code 1-1-1
  • person: includes a corporation as well as a natural person. See Alabama Code 1-1-1
  • state: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Alabama Code 1-1-1
(1) HEALTH BENEFIT PLAN. Any policy or contract for health care services, including a vision or dental benefit plan issued, delivered, issued for delivery, renewed in this state by a health care insurer, health maintenance organization, accident and sickness insurer, fraternal benefit society, nonprofit hospital service corporation, nonprofit medical service corporation, health care service plan, or any other individual, firm, corporation, joint venture, or other similar business entity that pays for, purchases, or furnishes health care services to patients, insureds, or beneficiaries in this state, including any entity created pursuant to Article 6 of Chapter 4 of Title 10, Code of Alabama 1975.
(2) PLAN SPONSOR. Any person who establishes, adopts, or maintains a health benefit plan, including an employer.
(b) A health benefit plan may provide all communications relating to a health benefit plan, including any health insurance identification card, to covered individuals of the health benefit plan by electronic means, provided the plan sponsor has done all of the following:

(1) Provided the consent to the mailing of all communications related to the plan by electronic means on behalf of covered individuals enrolled in the plan to the health benefit plan.
(2) Confirmed that the enrollee routinely uses electronic communications on a regular basis. This may be confirmed by the employer of an enrollee if the employer is the plan sponsor.
(3) Notified the enrollee of the electronic communication option and provided the enrollee with the opportunity to opt out of delivery by electronic communication. This notice may also be provided by the health benefit plan.
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