This bill amends Section 321.52 of the Iowa Code to allow insurers to apply for a salvage certificate of title for a motor vehicle without needing to surrender the existing certificate of title or the manufacturer's or importer's statement of origin. The bill specifies that this can occur if ownership of the vehicle has been or will be transferred to the insurer following a settlement with the previous owner due to damage, and at least thirty days have passed since the settlement. The application must now include an affidavit from the insurer confirming that they have made at least two attempts to obtain the necessary title documents from the previous owner and lienholders. Additionally, if the vehicle is deemed a total loss, the insurer can submit supporting documents that do not require notarization and may be signed electronically.

The bill also introduces a requirement for the insurer to indemnify the Department of Transportation against any claims arising from the issuance of the salvage certificate. Furthermore, the application must be accompanied by a $20 fee and proof of payment of the settlement amount to the previous owner. A $5 surcharge is also applicable as per existing law. Violations of the title and registration requirements, including those amended by this bill, are classified as a simple misdemeanor, subject to a scheduled fine of $135.

Statutes affected:
Introduced: 321.52