At the risk of creating another "Astonishing" thread...
I have been seeing the ads for EZBuy and most of my personal lines carriers use it (though some very tenuously it seems).
So I signed up (it's free) and went through their little demo and was surprised that it seems little or no attention is paid to actually verifying the identity of the person on the other end of the phone. Of course, what I anticipate is the guy who excludes a driver to save premium, that excluded driver causes a huge loss, then the insured claiming he did not "e-sign" the app, that someone else (a relative, friend, etc.) actually went through the process and therefore the exclusion is unenforceable.
Also, I would just like to get some impressions from any agencies that use it as to its ease of use and the workflow issues. Is it really a timesaver? How well do customers take to the process? Is more business written as a result of being able to sign at the time of quoting?
Thanks in advance for enlightening me.
Kevin M. Kennedy
KPIA - Kennedy Professional Insurance Agency www.kpia.com
KPIA wrote:At the risk of creating another "Astonishing" thread...
I have been seeing the ads for EZBuy and most of my personal lines carriers use it (though some very tenuously it seems).
So I signed up (it's free) and went through their little demo and was surprised that it seems little or no attention is paid to actually verifying the identity of the person on the other end of the phone. Of course, what I anticipate is the guy who excludes a driver to save premium, that excluded driver causes a huge loss, then the insured claiming he did not "e-sign" the app, that someone else (a relative, friend, etc.) actually went through the process and therefore the exclusion is unenforceable.
Also, I would just like to get some impressions from any agencies that use it as to its ease of use and the workflow issues. Is it really a timesaver? How well do customers take to the process? Is more business written as a result of being able to sign at the time of quoting?
KPIA wrote:At the risk of creating another "Astonishing" thread...
I have been seeing the ads for EZBuy and most of my personal lines carriers use it (though some very tenuously it seems).
So I signed up (it's free) and went through their little demo and was surprised that it seems little or no attention is paid to actually verifying the identity of the person on the other end of the phone. Of course, what I anticipate is the guy who excludes a driver to save premium, that excluded driver causes a huge loss, then the insured claiming he did not "e-sign" the app, that someone else (a relative, friend, etc.) actually went through the process and therefore the exclusion is unenforceable.
Also, I would just like to get some impressions from any agencies that use it as to its ease of use and the workflow issues. Is it really a timesaver? How well do customers take to the process? Is more business written as a result of being able to sign at the time of quoting?
Thanks in advance for enlightening me.
one thing though. if a friend or relative, etc...used that person's electronic signature without their knowledge...how in the world did this happen, anyways? wouldn't you have gotten the app back from the FIRST NAMED INSURED? they are the only one with the control over the account. the insured themselves have to take in some accountability as well. if you are changing the policy and binding accounts with someone other than the first named insured...well...good luck in not getting sued.
also, sometimes you don't get what you pay for. actually, happens all the time. i imagine we've all had some bad luck with a lemon car before. it's unfortunate. i hate getting ripped off. i like free. free means you can't really complain.
michga11 wrote:
one thing though. if a friend or relative, etc...used that person's electronic signature without their knowledge...how in the world did this happen, anyways? wouldn't you have gotten the app back from the FIRST NAMED INSURED? they are the only one with the control over the account. the insured themselves have to take in some accountability as well. if you are changing the policy and binding accounts with someone other than the first named insured...well...good luck in not getting sued.
I imagine they wouldn't say they never wanted the policy, because in that scenario to disavow the exclusion is to disavow the app. What they would do is say "I wanted the policy but I didn't want to exclude the driver".
Kevin M. Kennedy
KPIA - Kennedy Professional Insurance Agency www.kpia.com
michga11 wrote:
one thing though. if a friend or relative, etc...used that person's electronic signature without their knowledge...how in the world did this happen, anyways? wouldn't you have gotten the app back from the FIRST NAMED INSURED? they are the only one with the control over the account. the insured themselves have to take in some accountability as well. if you are changing the policy and binding accounts with someone other than the first named insured...well...good luck in not getting sued.
I imagine they wouldn't say they never wanted the policy, because in that scenario to disavow the exclusion is to disavow the app. What they would do is say "I wanted the policy but I didn't want to exclude the driver".
if they put that they wanted to exclude the driver on the app and signed it, via electronic or otherwise, then sent it over to you...then you did what you were supposed to do as an agent. think of an electronic signature being the same as a wet signature. it's all relative.
rule of thumb to avoid E&O exposure: get everything in writing. never bind coverage via phone when you can't verify whom you are speaking! that's just a silly practice.
i also do not understand this whole electronic signature over the phone. never heard of that. i know electronic signature via the internet. that's what electronic signature is. electronic = via email/internet. phone = verbal. verbal is verbal. no written proof = you lose in a court of law.
There seems to be some misunderstandings about how e-signatures and EZBuy works. On June 30, 2000, Congress enacted the Electronic Signatures in Global and National Commerce Act(1) ("ESIGN"), to facilitate the use of electronic records and signatures in interstate and foreign commerce by ensuring the validity and legal effect of contracts entered into electronically. If you have ever clicked on an "I Agree" or a purchase button to buy something on the internet, you have done an e-signature yourself. However, it's not just the clicking that is the e-siganture. The e-signature is comprised of a number of components that reflects the intent of the signer, the identity of the signer, an audit trail with date and time stamps showing the various clicks, mouse movements etc., other elements and a "hash" code that locks down all these things to reveal if it has been tampered with at a future date. The EZBuy e-signature process does all those things that results in a valid signtaure that is as enforceable as a wet signature. In fact, the national law firm of Locke Lord Bissell & Liddell (experts at e-signature) did a recent legal opinion of the EZBuy process and said that it satisfies all the e-signature requirements. EZBuy is meant to be used as a selling tool that allows a producer to immediately close and complete a sale via the internet instead of the customer driving to an office, using a fax or regular mail in order to complete a purchase. The agent can talk to the customer over the phone during the process and can even see the same documents on their computer while the customer is signing on their computer. The behavior is similar to being face to face with the customer except you are not. Once the custmer is done, EZBuy sends the signed app back to the producer to process. EZBuy can also collect the down payment and funnel it directly to the producer at the same time. In short, producers are using it to close more sales quickly before a customer buys elsewhere, extend their sales reach because distance is no longer a factor and to compete with the direct writers who are using the "convenience" and "ease of use" factor to sell online as well. As for EZBuy being free, it can be free to the producer if the producer chooses to pass the cost on to the customer. When a customer is given a choice to drive to an office to buy, use a fax or EZBuy, it's surprising how many will pick EZBuy for the reasons mentioned.
#1 An agent should NEVER NEVER NEVER use an electronic signature for an initial offer of coverage. You should always meet the person, verify their identity, and get a wet, or in person handwritten electronic signature.
#2 Once the initial verification of identity is done, then you can offer a customer the option of making changes, etc with an electronic signature, where you are not present.
There are two types of electronic signatures, the first is a handwritten electronic signature like you sign when you use a credit card, the second, is a click sign, where you check a box. The second type should never be used in an initial offer of coverage unless the insured is present and makes a wet signature that you keep on file.
mica.cooper, i disagree with you on the wet signature and face to face meeting. Before I got into the Insurance industry I purchased my insurance through Wawanesa online. did I ever met the agent face to face? No. I had an accident, was my claim covered promptly? Yes. Did I have any problems because I did not meet with someone face to face? No. EZ Buy is a tool for the Independent Agent to compete with the direct writers. As an independent Agent I dont have the multi million dollar budget for advertising like the direct writers so I have to use tools that allow me to compete with them.
My name is Joey 'Fireman' Jersey and I want a homeowners policy... its going to burn tomorrow. I wanna do the online signature thing so you don't see my face or get my signature or see my ID.
Are you kidding? iF YOU ONLY obtain business by first requiring a "wet" signature, what difference would that make? Mr. Firebug will still look at you and then go burn his house down.
unless you do not bind coverage until you obtain photos of the home you are insuring first, run all underwriting reports including credit CLUE, public data. com etc. etc., THEN call the customer back 2 weeks later, he will have purchased coverage or whatever.
You are living in the past. I have written personal lines for over 33 years and advanced our internal procedures along with technology and changes in business. i.e. THE INTERNET????
If the guy is NOT who he says he is, FRAUD! Misrepresentation, decline the loss. See you in court. The guy / gal will not show up in court after trying to fraud the insurer. Wake up....
EZBuy allows the independent agency to compete with direct writers who have a financial advantage against the mom and pop shop agency. IF independent agents and their "associations" had any brains, they would endorse EZBuy and other technology like it which somewhat levels the playing field.
Instead, the associations are doing whatever they do and independent agents have to survive without any centralized assistance.
Wow,
So your saying an independent agent can't compete without a thing like EZBuy? ...and your also saying independent agents and associations have no brains because they won't endorse it??? Wow
My experience with State Farm, Farmers, and others vs independent companies is that good independent agents representing solid companies have quite an advantage. I can name quite a few independent companies that took less than 5% increases in the last couple years vs the direct companies at 25-40% increases.
FYI, the agent is the first line of defense in underwriting, and rates for policyholders. When someone comes in, and they have lost their job, is taking a bankruptcy, going through a divorce, has a criminal history, etc, its the agents job to look them in the eye.
I'm sure EZBuy has its place, and its JUST a tool, to be used properly and at the appropriate time. It is surely not the fix all for all the ills of the independent agent.
All of the 'easy buy' features that I've ever seen do have disclaimers for the signer saying that if false information shows up, then the contract can and may be voided. That's enough protection for me.
I'm on the side of using all of the technical advances possible to keep market share in this day and age. As much as I'd like to reclaim the personna of 'trusted insurance advisor' showing up at client homes and workplaces in my conservative suit to intone with great solomnity what the policy will and will not do, I fully recognize those days are long gone and that there's a whole new generation of potential prospects who expect that these kinds of transactions can be done with a minimum of hassle and electronically.
