Members of the U.S. House could vote on H.R. 1059, the new version of the Securing and Enabling Commerce Using Remote and Electronic Notarization Act bill Monday.
House leaders have put the SECURE Notarization Act bill on a list of bills that qualify for quick consideration.
H.R. 1059 would set minimum national standards for online notarizations, and it would let a consumer in one state use a qualified online notary from any other state if the notarization involved a transaction related to interstate commerce.
Many financial services groups, including the American Council of Life Insurers, the Insured Retirement Institute and the National Association of Insurance and Financial Advisors, have been strong supporters of the SECURE Notarization Act effort, arguing that promoting easy access to remote online notarizations will make completing life insurance and annuity transactions online faster and easier.
Some other groups, including the California League of Independent Notaries and the Electronic Frontier Foundation, argue that the bill could increase the risk of fraud by requiring notaries to collect and keep sensitive consumer information and giving states no good way to oversee the activities of out-of-state notaries.
What It Means
Implementation of H.R. 1059 could help your clients do business with you and other providers of financial services and products online.
Increased use of remote notarization services could also push life insurance agents, financial advisors and financial product providers to spend more time vetting online notaries.
Notaries
A notary public is a state representative who verifies the identity of an individual signing a document and who determines whether the signer understands the document and is free from coercion.
Consumers often need to use notary services when they change life insurance policies or annuity beneficiaries, sign power of attorney affidavits or authorize third parties, such as children or spouses, to receive information related to their life insurance policies or annuities.
H.R. 1059
H.R. 1059 was introduced by Rep. Kelly Armstrong, R-N.D. It has 11 Democratic co-sponsors and four Republican co-sponsors.
The bill is similar to two House bills introduced in earlier congresses — H.R. 6364, a bill introduced in March 2020, and H.R. 3962, a bill introduced in June 2021 — and to related bills that were filed in the Senate.
H.R. 6364 attracted 82 co-sponsors. It and its Senate companion died in committee.
H.R. 3962 attracted 128 co-sponsors. The Senate companion died in committee, but H.R. 3962 passed by a 323-92 vote in the House.
Growing State Acceptance
Sixteen states allowed remote online notarizations before the COVID-19 pandemic started. Other states rushed to create permanent or temporary authorizations for remote online notarizations after the pandemic led to stay-at-home orders.
Delaware, Connecticut and California are among the states that were slow to allow remote online notarizations.
