VEHICLE TITLING AGENCIES (VTL): ACCEPTANCE OF E-SIGNED POWER OF ATTORNEY
Opportunity (future state)
This opportunity falls within the ESRA Mission. This proposal requires educating state agencies that electronic signatures and electronic records will significantly decrease fraud and serve commerce as states adopt these programs. E-POA is a subset of eOdometer and eTitle.
Vehicle Titling Agency (VTL) in each state requires the title to include an odometer statement disclosed by the transferor/seller to comply with the federal odometer disclosure requirement established by The Truth in Mileage Act (TIMA). TIMA is also referred to as “The Rule.” The Rule requires the seller whose name is on the title to provide an odometer disclosure to the buyer at the time of the sale. They buyer must sign the title acknowledging the mileage disclosure.
A POA may accommodate a transaction on behalf of the seller, and commonly occurs when the physical title is held by a lienholder. A state may not issue a title unless the existing title with the completed odometer disclosure statement also is presented with the POA.
From the insurance company perspective, the time involved in using a courier to deliver these paper documents can be reduced by implementing an electronic POA. An ePOA, properly signed and received by an insurer, would permit the insurer to issue a check for the insured’s equity interest in the vehicle, sooner.
While the odometer requirements are challenging, navigating the various states requirements for general POA forms and states specific forms adds another level. And, some states also require a notarized copy. Eventually, ePOAs may phase-out as eOdometers and eTitles gain acceptance.
Note: This project encompasses vehicles that have been titled at least once and does not involve dealer-to-dealer transfers.
Technology neutral and vendor neutral ePOA solutions must be offered that are financially viable for states to adopt. States participating in pilot programs and becoming familiar with ePOA is an important precursor for eOdodmeter.