HF 777: Relating to applications for a motor vehicle salvage certificate of title by an insurer without surrendering the certificate of title or manufacturer’s or importer’s statement of origin, making penalties applicable, and including effective date provisions

What it does

Under current law, when a motor vehicle is sold or transferred, the vehicle’s certificate of title must be physically exchanged between the seller or transferor and the purchaser or transferee. Limited exceptions apply, including that an insurer is authorized to apply for and be issued a salvage certificate of title for a motor vehicle without surrendering the certificate of title or manufacturer’s or importer’s statement of origin properly assigned if (1) ownership of the vehicle was transferred, or will transfer, to the insurer pursuant to a settlement with the previous owner of the vehicle arising from circumstances involving damage to the vehicle, (2) at least days have expired since the effective date of such settlement, and (3) the application is accompanied by an affidavit from the insurer in which the insurer certifies it has made at least two written attempts to obtain a properly assigned certificate of title or statement of origin for the vehicle by contacting the previous owner of the vehicle and all lienholders of record by certified mail or a similar service, and has been unable to obtain the title or statement of origin.

Senate subcommittee · named January 27, 2026

• Sen. Ken Rozenboom (R) · ken.rozenboom@legis.iowa.gov
• Sen. Liz Bennett (D) · liz.bennett@legis.iowa.gov
• Sen. Dan Zumbach (R) · dan.zumbach@legis.iowa.gov

Lobbying · 6 for, 0 against

For: American Property Casualty Insurance Association (APCIA); Copart; Grinnell Mutual Reinsurance Company; Iowa Insurance Associates; Iowa Insurance Institute; Nationwide Mutual Ins. Co.

In plain words

1. February 13, 2025Filed in the House and sent to the Transportation committee · as HSB 179
2. February 13, 2025House subcommittee named: Golding, Jeneary and Wilson · as HSB 179
3. February 26, 2025Subcommittee recommended passing it · as HSB 179
4. February 26, 2025Approved by the House committee · as HSB 179
5. February 26, 2025Committee vote: 20–0 · as HSB 179
6. March 5, 2025Filed in the House
7. March 5, 2025Approved by the House committee, and given a new number: HF 777 · as HSB 179
8. March 17, 2025Passed the House, 96–0
9. March 18, 2025Arrived in the Senate
10. March 24, 2025Senate subcommittee named: Klimesh, Koelker and Townsend
11. January 27, 2026Senate subcommittee named: Rozenboom, Bennett and Zumbach
12. January 28, 2026Subcommittee recommended passing it
13. March 19, 2026Approved by the Senate committee
14. April 8, 2026Passed the Senate, 45–0
15. April 15, 2026Passed the House, 95–0
16. May 6, 2026Sent to the Governor
17. May 15, 2026Signed into law