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, and making penalties applicable

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. _____ 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. This bill authorizes an insurer to instead submit one or more supporting documents described in the bill, evidencing the transfer of ownership from the previous owner to the insurer if the motor vehicle is deemed a total loss, as defined in the bill. Such supporting documents do not require notarization and may be signed electronically. The insurer is required to indemnify and hold harmless the department of transportation for any claims resulting from issuing a salvage certificate of title pursuant to the bill. In accordance with current law, an application with supporting documents must also be accompanied by a $20 application fee and proof of payment of the total amount of the settlement by the insurer to the previous owner of the vehicle.52A.52, including as amended by the bill, commits a simple misdemeanor punishable by a $135 scheduled fine.