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 the need 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 due to a settlement with the previous owner, and at least thirty days have passed since the settlement's effective date. To support their application, insurers must provide either an affidavit certifying their attempts to obtain the necessary documents or one or more supporting documents evidencing the transfer of ownership. The bill also allows for these documents to be signed under penalty of perjury instead of requiring notarization, and permits electronic signatures.

Additionally, the bill establishes penalties for violations of the title and registration requirements, classifying such violations as simple misdemeanors with a scheduled fine of $135. More serious offenses, such as knowingly providing false information, are classified as class D felonies, which carry potential penalties of up to five years of confinement and fines ranging from $1,025 to $10,245. The bill is set to take effect on January 1, 2026.

Statutes affected:
Introduced: 321.52