This bill proposes new regulations regarding salvage vehicle auctions and the process for insurers to obtain vehicle titles when they acquire ownership through payment of damages. It introduces a new section in Minnesota Statutes, chapter 168A, which outlines the procedures insurers must follow if a vehicle's title is not delivered by the owner within 15 days of a claim payment. Insurers are required to notify the vehicle owner and any lienholders at least 15 days before applying for a title, and they must attest to specific conditions when submitting their application. If approved, the commissioner will issue a title that extinguishes all existing liens against the vehicle.

Additionally, the bill establishes requirements for auction companies handling salvage vehicles. If an insurance company requests an auction company to take possession of a salvage vehicle but does not take ownership, the insurance company can direct the auction company to release the vehicle to the owner or lienholder. The auction company must notify the owner and lienholders about the vehicle's availability for recovery, and if the vehicle is not recovered within 30 days, it is deemed abandoned. In such cases, the auction company can request a new title free of liens, which will bear a salvage or prior salvage brand.