The New York State Insurance Department may impose a requirement that an insurance company verify the identity of a person providing an electronic signature on an online application for insurance, notwithstanding the less restrictive definition of an electronic signature in the New York Electronic Signatures and Records Act, a district court ruled. The court noted that while the New York ESRA was amended in 2002 to remove language pertaining to verification of identity from the definition of an electronic signature, the Department could impose such a requirement under its regulatory authority over the business of insurance. The court concluded that there was a disputed issue of fact that precluded the grant of summary judgment on the issue of whether the submission an insurance application via a “standard internet click-through process” satisfied the identity verification requirement, where the process required the applicant to submit personal information including an address and Social Security number.

The Prudential Insurance Company of America v. Dukoff, 2009 U.S. Dist. LEXIS 117843 (E.D. N.Y. Dec. 18, 2009) Download PDF