Senate File 448 - Reprinted SENATE FILE 448 BY COMMITTEE ON TRANSPORTATION (SUCCESSOR TO SSB 1178) (As Amended and Passed by the Senate March 21, 2017 ) A BILL FOR An Act relating to insurers in possession of salvage motor 1 vehicles. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 SF 448 (2) 87 ns/nh/jh

S.F. 448 Section 1. Section 321.45, subsection 2, paragraph a, Code 1 2017, is amended by adding the following new subparagraph: 2 NEW SUBPARAGRAPH . (6) An insurer obtains a salvage 3 certificate of title for a vehicle pursuant to section 321.52, 4 subsection 4, paragraph “0a” . 5 Sec. 2. Section 321.52, subsection 4, Code 2017, is amended 6 by adding the following new paragraph: 7 NEW PARAGRAPH . 0a. Notwithstanding any other provision of 8 law to the contrary, an insurer may apply for and be issued 9 a salvage certificate of title for a motor vehicle without 10 surrendering the certificate of title or manufacturer’s or 11 importer’s statement of origin properly assigned if ownership 12 of the vehicle was transferred, or will transfer, to the 13 insurer pursuant to a settlement with the previous owner of 14 the vehicle arising from circumstances involving damage to 15 the vehicle, and at least thirty days have expired since 16 the effective date of such settlement. To obtain a salvage 17 certificate of title pursuant to this paragraph “0a” , the 18 insurer shall submit an application for a salvage certificate 19 of title to the county treasurer of the county in which 20 the vehicle is stored by or on behalf of the insurer. The 21 application shall be accompanied by an affidavit from the 22 insurer in which the insurer certifies it has made at least 23 two written attempts to obtain a properly assigned certificate 24 of title or manufacturer’s or importer’s statement of origin 25 for the vehicle by contacting the previous owner of the vehicle 26 and all lienholders of record by certified mail or a similar 27 service that provides proof of service using a return receipt, 28 and has been unable to obtain the title or statement of origin. 29 The failure of a previous owner or lienholder to provide a 30 properly assigned certificate of title or manufacturer’s or 31 importer’s statement of origin shall be deemed to be a waiver 32 by the previous owner or lienholder of all rights, title, 33 claim, and interest in the vehicle. The application shall also 34 be accompanied by the application fee required under paragraph 35 -1- SF 448 (2) 87 ns/nh/jh 1/ 2

S.F. 448 “a” , and proof of payment of the total amount of the settlement 1 by the insurer to the previous owner of the vehicle. Upon 2 receiving an application that complies with this paragraph “0a” , 3 the county treasurer shall issue a salvage certificate of title 4 to the insurer which shall be free and clear of all liens and 5 claims of ownership and shall bear the word “SALVAGE” stamped 6 or printed on the face of the title in a manner prescribed by 7 the department. 8 Sec. 3. Section 321.67, Code 2017, is amended to read as 9 follows: 10 321.67 Certificate of title must be executed. 11 1. No person, except as provided in sections 321.23 and 12 321.45 , and section 321.52, subsection 2 , paragraph “b” , and 13 section 321.52, subsection 4, paragraph “0a” , shall sell 14 or otherwise dispose of a registered vehicle or a vehicle 15 subject to registration without delivering to the purchaser or 16 transferee thereof a certificate of title with such assignment 17 thereon as may be necessary to show title in the purchaser. 18 2. No person shall purchase or otherwise acquire or bring 19 into this state a registered vehicle or a vehicle subject to 20 registration without obtaining a certificate of title thereto 21 except for temporary use or as provided in sections 321.23 and 22 321.45 , and section 321.52, subsection 2 , paragraph “b” , and 23 section 321.52, subsection 4, paragraph “0a” . 24 Sec. 4. Section 321.104, subsection 4, Code 2017, is amended 25 to read as follows: 26 4. To sell, offer for sale, or transfer a motor vehicle, 27 trailer, or semitrailer, except as provided in section 321.47 28 or 321.48 , or section 321.52, subsection 2 , paragraph “b” , 29 or section 321.52, subsection 4, paragraph “0a” , without 30 obtaining a certificate of title in the name of the seller or 31 transferor or without delivering to the purchaser or transferee 32 a certificate of title or a manufacturer’s or importer’s 33 certificate duly assigned to the purchaser or transferee as 34 provided in this chapter . 35 -2- SF 448 (2) 87 ns/nh/jh 2/ 2