An electronic signature replaces a signature on a paper record.
Electronic signatures fit absolute authorization for many types of insurance transactions, and again serve as notification when the policy holder or insurance agent receives a file. Federal administration agencies are required to select electronic signatures due to federal charter, and some of these agencies endeavor health and other types of insurance to American mankind. The HIPAA includes additional standards which define whether a certain type of electronic signature is acceptable for a health insurer to implement.
Exceptions
When an insurer sends a notice to a policy holder about the cancellation of health or life insurance benefits, an exception to the Electronic Signatures in Global and National Commerce Act applies. An electronic signature is not valid for the purpose of canceling health or life insurance, with the exception of the cancellation of an annuity, according to the National Telecommunications and Information Administration.Provided control or federal enactment requires the practice of a trustworthy font vastness to guard that customers can scan policy details, the electronic file must retain this font proportions. A control may further define a minimum font magnitude or a font style on an insurance record to effect that a citizen can construe it. Provided a rule requires a signature on a paper string to seem in a customer's own ability, this requirement no longer applies because typing absent an electronic signature is considered genuine consent.
Receipt Confirmation
Many laws specify the date period in which a document must be sent and received. The electronic signature is considered valid when the recipient receives the document. According to the state of West Virgina, the federal Uniform Electronic Transactions Act does not change any deadlines for delivery of documents when they are electronically delivered. If a signed document requires additional confirmation that the insurer or policy holder received the document, the software in use must also provide acceptable confirmation.
Health Insurance
Under the federal Health Insurance Portability and Accountability Act (HIPAA), use of an electronic signature is optional. The customer who holds the health insurance policy must agree to the use of an electronic signature. The insurer must also agree to use electronic signatures. Electronic signatures are real for most insurance transactions, with policy cancellation duration one of the leading exceptions in electronic signature laws.
Signature Regulations
When an insurer uses electronic signatures, some regulations which exercise to paper documents even utilize.Some states have also passed similar legislation on policy cancellation which matches this federal law.
