National Report (April 2001)

Under the federal e-signature law enacted by Congress last year, electronic documents related to insurance will become the legal equivalent of their ink and paper counterparts on March 1st. The legislation will benefit insurers, customers, and trees, according to the American Insurance Association. “The passage of federal legislation giving e-signatures and e-documents equal legal validity was crucial in order for insurers and consumers to conduct business online confidently,” said John Savercool, vice president of federal affairs for AIA. “It will prove a boon for consumers and businesses alike, especially in paper-intensive industries like insurance. One can almost hear the trees celebrating.” Relief from the need to create, store, and transmit paper copies of all documents will fuel the move to online insurance transactions, according to Savercool, who also cited the financial savings that would result.