House File 777 amends Section 321.52 of the Iowa Code to streamline the process for insurers to obtain salvage certificates of title for motor vehicles. The bill allows insurers to apply for a salvage certificate without surrendering the original title or manufacturer's statement if ownership has been transferred to them following a settlement with the previous owner, provided that at least thirty days have passed since the settlement. Insurers must submit an application to the county treasurer, accompanied by an affidavit certifying that they have made at least two attempts to obtain the original title from the previous owner and lienholders. The bill also clarifies that the failure of the previous owner or lienholder to provide the title is considered a waiver of their rights to the vehicle.

Additionally, the bill introduces provisions allowing supporting documents submitted with the application to be signed under penalty of perjury instead of requiring notarization, and it permits electronic signatures. The application must include the required fee and proof of payment of the settlement amount. Upon compliance with these requirements, the county treasurer is mandated to issue a salvage certificate that is free of liens and clearly marked as "SALVAGE." The bill is set to take effect on January 1, 2027.

Statutes affected:
Introduced: 321.52
Enrolled: 321.52