Electronic signature adoption is growing among Canadian insurance companies, driven in large part by consumer’s expectations for convenient, personalized and efficient service. While the benefits of straight through processing are obvious, questions often still arise regarding the legal requirements and implications of bringing processes online. This webcast offers a uniquely Canadian look at e-signatures and answers the MOST frequently asked questions on the topic:
How do Canada’s laws apply to e-signatures and records in insurance?
How can we best meet the legal requirements while ensuring an easy-to-use e-sign experience?
Daniel Fabiano, author of the 2013 CSIO report, Electronic Signature and Electronic Delivery of Insurance Documentation, explains the legal requirements applicable to e-signatures, e-records and e-delivery in the insurance industry. He will also provide a legal framework for the design and implementation of a compliant e-sign process.
4. Disclaimer
• This presentation is for general information only. It
is neither intended as, nor should it be construed
as, legal advice or opinion
• Insurance and e-commerce laws vary by province.
For legal advice that is specific to your jurisdiction
and situation, please consult a lawyer
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5. Why Put Down the Pen?
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• Automate / expedite business processes
• Cut operational costs
• Improve efficiency and collaboration
• Improve customer experience
• Environmentally-friendly
• Address legal compliance / limit liability
7. Exclusions (E-Commerce Law)
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Wills /
codicils
Trusts
created by
wills /
codicils
Powers of
attorney
Negotiable
instruments
Land
transfer /
registration
8. Exclusions (Insurance Law)
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Notice of
cancellation
Alterations
to policy by
insurer
Trustee
appointment
Beneficiary
designation
(testamentary
disposition
concern)
Nomination of
person as
having rights /
interests of
insured on
insured’s
death
9. Scope of E-Commerce
• E-contracts and e-signature
• E-delivery of documents
• Retaining E-records in place of paper records
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10. Consent
• Consent to conduct business electronically
• May be express (written / verbal) or implied
• Scope of consent should be clear:
1. to enter into a contract electronically and
2. to receive delivery of information electronically
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11. Electronic Signatures
• E-signature:
“Electronic information that a person creates or adopts in order to
sign a document and that is in, attached to or associated with the
document”
• Whether an e-signature meets a legal requirement depends on the
circumstances
• Some jurisdictions require that the technology / process be able to
prove that the signature:
• Is unique / specific to the individual
• Is incorporated into the document
• Was incorporated by the signor
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12. Risk of Repudiation
• Dispute over the legitimacy of signature!
• E-signature process needs to be designed with 3 “I”s in mind:
the electronic signature is that of the person who is
intended to sign the document;
the person applied his or her signature with the intent
to sign the document; and
the electronic signature is bound to the document so
that any changes to the document can be detected.
• Choose an appropriate form of electronic signature, and
ensure integrity by tamper-proofing e-records
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• Identity
• Intention
• Integrity
13. “In Writing” Requirement?
• “Set out” in writing?
• “Provided” or “delivered” in writing?
• Electronic documents can satisfy these
requirements if the record can be retained and is
accessible by recipient for subsequent reference
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14. Scope of E-Commerce
• E-contracts and e-signature
• E-delivery of documents
• Retaining E-records in place of paper records
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15. E-Record Retention
• Retaining an e-record in place of a paper copy
• Must be organized in the same or substantially the same way
• Must be accessible for subsequent reference by entitled person
• Must be reliable assurance as to the integrity of the information
• Must keep information on
• Origin
• Destination (if required to send it)
• Date and time sent or received (or created)
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16. E-Record Retention: Integrity
• “Integrity” of electronic document
• Document remains complete and unaltered / secure
• Must be stable through life-cycle
(creation, access, transmission, copying, retention, until
archiving/destruction)
• Detailed recordkeeping for modifications to the
document
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17. Process Design: Best Practices
• Involve legal counsel and technology and process experts at
the outset when designing the system
• Consider how documents will be delivered (keeping in mind
privacy issues and legislation)
• Consider how to handle undelivered emails
• Consider how each electronic document can be tracked
• Time and date stamps, receipts etc.
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18. Process Design: Best Practices
• Obtain written consent to:
• Communicate electronically / provide information electronically
• Use electronic signatures
• Consider which signature methods are appropriate
• Digitized versus digital / encrypted
• E-signature process should:
• Require the user to access the entire document before signing
• Require action to effect the electronic signature
• Informs the signer of how to sign
• Records the date, time and signature with the signed doc in a
tamper-proof manner
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22. E-Signature Drivers for Insurance
• Customer experience
• Increase agent productivity
• Cut paper and delivery costs
• Reduce NIGO / errors
• Strengthen compliance and legal position
• Demonstrate green business practices
23. Getting Started
• What is needed?
• Hosted Service (SaaS)
• Little or no setup
• Any size company
• On-premises
• Enterprise or department
• Maximum flexibility and control
• How to use
• Stand-alone
• Manually prepare transactions
• Lower volume, no integration
• Integrated
• Directly connect to LOS, document systems
or third-party connectors
• High volume, customizable, flexible
Sign up
Add
documents
Add
signers
Send
Sign and
done!!!
24. Easy to send & manage
• How to send
• Manually prepare and send documents for signature
• Or Save templates for repeat packages and documents
• Or Integrated with line of business applications
• Manage documents
• Groups and permissions
• Configure workflow
• Form field rules and settings
• Manage transactions
• Monitor transactions
• Report in-progress transaction status
• Co-browse with signers
25. Easy to access and receive
• How to access
• Directly through web page
• From email invitation
• Through mobile device (browser or app)
• Consent & Delivery (per user)
• ESIGN consent
• Opt-out, print options
• E-Delivery acceptance
• PDF for long-term access
26. Secure electronic signatures made easy
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• Uniquely linked to the
signatory
• Capable of identifying the
signatory
• Signatory can maintain
under their sole control
• Linked to data such that
any subsequent change is
detectable
User ID/PIN
Email address
Shared secret
Graphic signature capture
SMS Passcode
Online ID Service (KBA)
Voice
IP Address
Associate action to document
and signature location
Embed verifiable signature
data in document and secure
Apply at signature location
for clear intent
Affirmative act by signer
• Click to sign
• Typed name
• Graphic signature
Authenticate
Associate
27. Secure Transaction Evidence
• E-Signed Document Security
• Digital signature tamper seals
and links document to signatures
• Embedded signature block,
signer identity, time & date
stamp, e-signature audit log
• One-click signature & document
verification
• Electronic Evidence & Privacy
• Replay all web pages and actions
• Secure chain of custody from web
pages, audit files to signatures
• Encrypt data transmissions
• Prevent unauthorized changes
during transaction
• E-Delivery through web download
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