Bill > HSB179

Introduced Session

Under current law, when a motor vehicle is sold or transferred, the vehicle’s certificate of title must be physically exchanged between the seller or transferor and the purchaser or transferee. Limited exceptions apply, including that an insurer is authorized to apply for and be issued a salvage certificate of title for a motor vehicle without surrendering the certificate of title or manufacturer’s or importer’s statement of origin properly assigned if (1) ownership of the vehicle was transferred, or will transfer, to the insurer pursuant to a settlement with the previous owner of the vehicle arising from circumstances involving damage to the vehicle, (2) at least 30 days have expired since the effective date of such settlement, and (3) the application is accompanied H.F. _____ by an affidavit from the insurer in which the insurer certifies it has made at least two written attempts to obtain a properly assigned certificate of title or statement of origin for the vehicle by contacting the previous owner of the vehicle and all lienholders of record by certified mail or a similar service, and has been unable to obtain the title or statement of origin. This bill authorizes an insurer to instead submit one or more supporting documents described in the bill, evidencing the transfer of ownership from the previous owner to the insurer if the motor vehicle is deemed a total loss, as defined in the bill. Such supporting documents do not require notarization and may be signed electronically. The insurer is required to indemnify and hold harmless the department of transportation for any claims resulting from issuing a salvage certificate of title pursuant to the bill. In accordance with current law, an application with supporting documents must also be accompanied by a $20 application fee and proof of payment of the total amount of the settlement by the insurer to the previous owner of the vehicle. In addition, a surcharge of $5 is required pursuant to Code section 321.52A. A person who violates the title and registration requirements of Code section 321.52, including as amended by the bill, commits a simple misdemeanor punishable by a $135 scheduled fine.

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Committee report approving bill, renumbered as HF 777. (on 03/05/2025)

Official Document