The New York State Department of Financial Services has reaffirmed its opinion that insurers and producers must obtain a client’s consent before providing electronic copies of policies.
Since the enactment of New York’s Electronic Signatures and Records Act in 1999, the DFS has consistently interpreted it as requiring insurers and producers to obtain prior consent from clients before sending them any insurance documents in electronic form. Big I New York and others had suggested to the department that they waive the prior consent requirement during the state of emergency declared by the governor in response to the COVID-19 outbreak.
However, a new post on the department’s website repeated its traditional stance: “New York’s Electronic Signatures and Records Act … and the federal Electronic Signatures in Global and National Commerce Act … permit the insurance industry to use and accept electronic signatures and records if the consumer with which an individual or entity is doing business consents to engage in an electronic transaction. [Emphasis added] … The Department does not require that the insurance industry obtain consent from a consumer in a particular way. A consumer may consent to engaging in electronic transactions by sending an email to the regulated insurance person or entity affirmatively stating such, for example. Regardless of how consent is obtained, the insurance industry must maintain proof that a consumer has affirmatively consented to engaging in electronic transactions.”
Big I New York members have access to a sample consenst agreement that has been reviewed and approved by our attorneys. They can download it from the Electronic Policy Delivery page in the Answer Center at www.biginy.org. Click on “Helpful Tools” and look for the link to “Sample Electronic Consent Form.”