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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
total loss vehicle; electronic signatures
Purpose
Allows an insurance company's authorized agent to execute a power of attorney without notarization if submitted electronically and authorizes an electronically signed power of attorney to be printed using a commercial product that validates a person's identity as prescribed.
Background
The
Director of the Arizona Department of Transportation (ADOT) or a designated
officer, agent or employee of ADOT may witness a power of attorney to be used
solely in the performance of vehicle title and registration activities. For the
purposes of executing a power of attorney in the performance of vehicle
title and registration activities, the power of attorney is not required to be:
1) notarized if it is witnessed by the Director of ADOT (Director) or a
designated officer, agent or employee of ADOT; 2) notarized if it is involving
a total loss vehicle settlement and a licensed insurance company submits it
electronically to ADOT in a manner approved by ADOT; or
3) witnessed if it is notarized (A.R.S.
§ 28-370).
The National Institute of Standards and Technology's (NIST) authenticator assurance level 2 requires the use of two authentication factors, either a physical authenticator and a memorized secret or a physical authenticator and a biometric that has been associated with it (NIST).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Allows an insurance company's authorized agent to execute a power of attorney for a vehicle title and registration involving a total loss settlement without notarization if the agent electronically submits the power of attorney.
2. Allows the power of attorney to be signed electronically and printed on hard copy by using a commercial product that validates a person's identity by using the NIST's identity assurance level 2 or higher authorization without biometrics.
3. Defines sign electronically as attaching to or logically associating with an electronic record an electronic sound, symbol or process that is used by a person to execute or adopt the electronic record with the intent to sign the electronic record without the requirement of a physical touch.
4. Makes technical and conforming changes.
5. Becomes effective on the general effective date.
House Action
TI 2/5/25 DP 7-0-0-0
3rd Read 2/25/25 60-0-0
Prepared by Senate Research
March 3, 2025
KJA/NRG/ci