IMPACTS OF E-SIGN

The impact on insurers of the Electronic Signatures in Global and National Commerce Act of 2000 (also known as “E-Sign”) was recently discussed at a Capitol Hill hearing. Christopher Roe, vice president and legal counsel for Fireman’s Fund Insurance Company and representative of the American Insurance Association, cited the lack of uniformity among state laws governing e-commerce as the biggest handicap for insurers wishing to take advantage of E-Sign’s provisions. Roe stated that E-Sign, coupled with state passage of the Uniform Electronic Transaction Act (UETA), will ultimately enable insurers to better deliver speed, efficiency, and cost savings in future online insurance transactions, but he underscored that non-uniformity of UETA provisions among the states still remains a significant impediment to the most effective delivery of online services. UETA, which is a model state law, has been adopted exactly as written by about 20 states. Another 15 states have enacted an amended version of UETA. Federal E-Sign provisions apply in the remaining states.