The 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 original certificate of title or the manufacturer's statement of origin, provided certain conditions are met. Specifically, the insurer must have ownership transferred to them through a settlement with the previous owner due to vehicle damage, and at least thirty days must have passed since the settlement. The application process requires the insurer to submit an affidavit certifying that they 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 stipulates that the application must include a $20 fee and proof of payment of the settlement amount to the previous owner. It introduces a requirement for the insurer to indemnify the Department of Transportation against any claims arising from the issuance of the salvage certificate. Furthermore, it establishes penalties for violations of the title and registration requirements, classifying such violations as a simple misdemeanor with a scheduled fine of $135. Overall, the bill aims to streamline the process for insurers in obtaining salvage titles while ensuring compliance with legal requirements.

Statutes affected:
Introduced: 321.52