Cross Out More Ink Signature Requirements: IRI to NAIC

A retirement services group says states should minimize the amount of “wet signature” requirements they impose on consumers who prefer to do business online.

The Insured Retirement Institute has sent the National Association of Insurance Commissioners a letter asking regulators to make use of electronic signatures the default whenever possible, except when statutes still require use of ink signatures on paper, or clients prefer to get and sign paper documents.

“We understand that there will always be some consumers that want paper, and this approach will not take that away from those consumers,” Sarah Wood, IRI’s state policy and regulatory affairs director, writes in the letter.

But IRI believes that an electronic default approach is more aligned with what consumers want and gives regulators and insurers tools, such as detailed audit trails — which paper lacks — Wood adds.

What It Means

The days of bringing clients into the office to sign forms might be numbered.

The History

IRI sent its letter in response to efforts by the NAIC’s E-Commerce Working Group to find out what regulations still hinder the ability of insurers and consumers to conduct business electronically.

The working group posted a survey response document that shows that industry groups had reported problems with wet signature requirements.

One regulator concern is that many consumers still want to get important insurance documents on paper, and another concern is that state laws may still require wet signatures, the working group says.

The working group notes that regulators might be able to address those concerns by seeking changes in state laws, and by making sure that laws and regulations include provisions for consumers who prefer to use paper forms and ink signatures.

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