The eSignature legal guide for the United States:

Electronic Signature has been federally recognized by law since 2000 with the Electronic Signatures in Global and National Commerce Act (ESIGN Act) and the Uniform Electronic Transactions Act (UETA).   These Acts admit the validity and enforceability of electronic signatures.  The past two decades have proven time and time again that the US is business friendly and supports eSignature for business and personal transactions.

Uniform Electronic Transactions Act (UETA)

UETA was published by the Uniform Law Commission (ULC) in 1999, and it granted eSignatures the same legal effect as ink signatures. UETA has its own guidelines for states that comply with this act for electronic signatures and all 50 states, the District of Columbia, Puerto Rico, and the Virgin Islands have enacted state laws validating electronic signatures.  Right now all but 3 states have adopted the Uniform Electronic Transactions Act (UETA). The three states that have not adopted UETA (Illinois, New York, and Washington) have adopted their own version of UETA that has similar statutes and validates electronic transactions.

Electronic Signatures in Global and National Commerce Act (ESIGN Act)

The ESIGN Act was signed into law in 2000.  The federal government realized UETA was adopted at the state level and competing laws could complicate interstate transactions; so they wanted to create an Act that would clarify the rules federally.  The ESIGN Act federally recognizes eSignatures as legally valid nationally and internationally, as long as everyone consents to eSignature.  

Are eSignatures legally binding and enforceable for insurance transactions?

Yes!!!  Both the UETA and ESIGN ACT define that “a signature, contract, or other record relating to such a transaction may not be denied legal effect, validity, or enforceability solely because it is in electronic form.”  

What is an electronic signature?

An eSignature is defined as “an electronic sound, symbol, or process, attached to or logically associated with a contract or other record and executed or adopted by a person with the intent to sign the record.” 

The general rule, as long as certain requirements are met- eSignatures are valid.  Secure Insure provides the required consent forms to both parties, the appropriate disclosures regarding the process of signing, and maintains the audit trails and logs required. 

Disclaimer:

This information is intended for general informational purposes only. It is meant to help understand how the United States views eSignature in the court of law. We do advise you consult a licensed attorney for legal advice or representation if you have concerns or questions on your specific use case.

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