SB 320

Current law defines a “salvage vehicle” as “a vehicle less than 7 years old that

is not precluded from subsequent registration and titling and that is damaged by

collision or other occurrence to the extent that the estimated or actual cost,

whichever is greater, of repairing the vehicle exceeds 70 percent of its fair market

value.” Under current law, a purchaser of a salvage vehicle that is not currently

titled as a salvage vehicle must apply for a salvage vehicle certificate of title by

submitting to the Department of Transportation all of the following: 1) the properly

assigned certificate of title or other evidence of ownership, 2) the applicant's

statement that the vehicle is a salvage vehicle, 3) an application for a salvage

certificate of title, and 4) the required fee.

This bill provides that an insurer who is taking delivery in this state of a salvage

vehicle that is not currently titled as a salvage vehicle upon payment of an insurance

claim that exceeds 70 percent of the fair market value of the vehicle satisfies item

1) above by providing “other evidence of ownership” if all of the following apply: 1)

the insurer provides certain notice to the previous owner, 2) the previous owner fails

to execute an assignment of title for the vehicle to the insurer, and 3) the insurer

provides DOT with evidence that the insurer has paid to the previous owner or

secured party a total loss claim on the vehicle and that the insurer requested that

the previous owner execute an assignment and warranty of title for the vehicle to the

insurer.