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 original 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 or theft, and at least thirty days have passed since the settlement's effective date. The application process requires the insurer to submit either an affidavit certifying attempts to obtain the necessary documents or supporting documents evidencing the transfer of ownership. Notably, these supporting documents can be signed under penalty of perjury and electronically, rather than requiring notarization.

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. It also stipulates that knowingly providing false information in the application process constitutes a class D felony, which carries a potential prison sentence of up to five years and significant fines. The bill is set to take effect on January 1, 2026.

Statutes affected:
Introduced: 321.52