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Frequently Asked Legal Questions

Have electronic signatures been tested in a court of law and accepted?

Yes, there is a growing body of case law that is establishing precedence for electronic records and signatures. While in some cases, electronic records were accepted as evidence and the transaction under question upheld, in other cases the court did not admit, or at least criticized, the electronic records as evidence. Much can be learned from these cases in determining how to implement electronic signatures in a way that will ensure legal enforceability. Some noteworthy cases include:

  • Vinhnee v. American Express
    Plaintiff could not demonstrate safeguards to ensure record accuracy and identify errors. The court refused admission of an electronic record into evidence as the plaintiff could not demonstrate that the procedure used to create and store the record had built-in safeguards to ensure accuracy and identify errors.
  • Campbell v. General Dynamics Government System Corp.
    Contract rejected because terms of agreement had to be accessed through hyperlinks. The Court concluded an email did not provide adequate notice of a new mandatory arbitration policy. The actual policy was not contained in the email rather in a document that could be accessed through a hyperlink in the message.
  • 2005 NY Slip Op 25526
    Method of signing blank eTickets criticized by court. The court criticized the State’s method of electronically signing eTickets as the record is “signed” prior to any information being entered regarding the infraction.
  • Shattuck v. Klotzbach
    The terms and conditions of a real estate transaction communicated through email were deemed binding.
  • Hotmail Corporation v. Van$ Money Pie Inc
    The terms and conditions of service agreement through an online I Agree button were deemed binding.

    For additional information on electronic record and signature case law visit the Internet Library of Court Decisions.

What is the significance of an electronic signature?

Applying an electronic signature to a document captures a person's intent, consent, understanding, or responsibility related to a document that is being signed. An electronic signature becomes particularly important to prove that an individual selected or declined certain types of insurance coverage while completing an insurance application online. Essentially, an electronic signature has the same meaning as a traditional handwritten signature, except that it is done online.

Is an electronic signature safe?

Yes. Just like a traditional pen and paper process, an electronic signature permanently binds a person's consent to the exact contents of a document using electronic security methods akin to an electronic tamper-seal. Once a document is electronically signed, deleting the signature, or transferring it to another document, or altering the document's contents, renders the electronic signature invalid. This electronic tamper-seal ensures both parties that the electronically signed document is unaltered from the moment that the prospective insured signs it.

How can you know that I electronically signed this document instead of another person?

In the paper world, handwritten signatures are considered unique to the person. However, they can still be forged and cannot be verified with complete certainty. Therefore, we rely on other information and events to be certain you were the person who signed the document. This includes the personal information that you provided as part of your insurance application that we can verify. In addition, payments and other documents will be exchanged or completed which will further confirm that you were the person who signed the document. The same process applies to verify that a particular electronic signature belongs to someone. Once your identity is established, you may also be assigned a private password which you will use for subsequent signings and transactions.

How do I know that my application or document hasn't been changed since I electronically signed it?

When you electronically sign a document through our web site, the document is secured with an electronic tamper-seal. This electronic tamper-seal will detect any change to the document's contents, and cause the electronic signature to appear invalid due to the change. In addition, the tamper-seal is completely secure and cannot be modified or removed without invalidating the electronic signature on the document.

Is an electronic signature legal?

Yes, both federal and state law gives electronic signatures the same legal status as handwritten signatures. To date, 45 states (including Florida) have passed the Uniform Electronic Transaction Act. Additionally, the Electronic Signatures in Global and National Commerce Act (ESIGN), a federal law, provides that electronic signatures are legally enforceable for agreements that support eCommerce.

What are the legal requirements of electronic signatures?

(a) The signature must be unique to the person using it.

Electronic signatures meet this requirement by prompting individuals to perform an action that is unique to them, such as entering a private password each time that they electronically sign a document. Requiring the individual to enter information, such as a password, that is only known by him or her increases the reliability that the individual consented to certain policy provisions.

(b) The signature must be verifiable.

Electronic signatures meet this requirement by associating a person's private password in a secure manner to the information they provided for identification. The electronic signature is then verifiable as coming from the person who electronically signed the document.

(c) The signature must be under the sole control of the person using it.

Electronic signatures meet this requirement in two ways. First, before a person may electronically sign a document, he or she must enter something that is known only by that individual, such as a private password. Second, the individual also has control over the computer file which contains the application, including the electronic signatures.

(d) The electronic signature process must guarantee that the document signed cannot be altered after it has been electronically signed.

Once the document is electronically signed, it is secured by an electronic tamper-seal. This electronic tamper-seal will detect any changes to the document, and if any changes occur after the document was electronically signed, the electronic tamper-seal will invalidate the electronic signature. The electronic tamper-seal is completely secure and cannot be modified or removed without invalidating the electronic signature and the document. This process ensures that once the document is electronically signed, the contents of that document will remain unaltered.

(e) The electronic signature must capture and preserve the signer's intent, consent, understanding, or responsibility related to a document that is being signed.