NY OGC Opinion on Electronic Policy Delivery
We often receive inquiries about e-commerce issues. The New York State Insurance Department's Office of General Counsel recently opined that insurers must get consent from each insured before making his or her policy available on-line in lieu of providing paper copies. But if consent is given, the electronic documents are admissible as evidence in court, according to the opinion. This should give companies comfort as they move towards increased e-delivery and a paperless environment.
The inquiry involved a company that offers its customers access to their policies through a portal on its Web site. The company asked whether it needs permission to make the policies available exclusively on-line. OGC answered in the affirmative, citing the state Electronic Signatures and Records Act and the federal Electronic Signatures in Global and National Commerce Act. In both of the acts, the use of electronic signatures and records is voluntary on both sides of the commercial transaction. OGC also referred to previous opinions in which delivery was via e-mail and stated that the web portal here did not change the analysis.
The company further inquired about how the courts would view a printout of a document that lives in cyberspace. The Department responded that courts will accept the printed document, as long it’s found to be an accurate representation of the electronic document. New York Technology Law § 305(3) provides that electronic records are given the same force and effect as any other record.
