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 an affidavit certifying that they have made at least two attempts to obtain the necessary title documents from the previous owner and lienholders. Additionally, the bill introduces the option for insurers to provide supporting documents that evidence the transfer of ownership, which can be signed under penalty of perjury rather than requiring notarization.

The bill also establishes penalties for violations of the title and registration requirements, classifying such violations as simple misdemeanors with a scheduled fine of $135. Furthermore, knowingly providing false information in the application process is classified as a class D felony, which carries a potential prison sentence of up to five years 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