GREEN SHEET REDIGEST
HB 790 2022 Regular Session Hollis
MOTOR VEHICLES: Provides relative to certificate of ownership and salvage title
for motor vehicles declared to be a total loss.
DIGEST
Present law provides the requirements for an application for certificates of title, including
salvage title.
Present law specifies when, as the result of an insurance settlement, a motor vehicle is
declared to be a "total loss", as defined in present law, the insurance company, its authorized
agent, or the vehicle owner shall, within 30 days from the settlement of the property damages
claim, send the certificate of title, properly endorsed, to the office of motor vehicles along
with an application for a salvage title in the name of the insurance company, or its authorized
agent, or the vehicle owner.
Present law provides the requirements for when an insurance company or its authorized agent
may submit an application for a salvage title and signed under penalty of perjury.
Proposed law retains present law and adds alternative requirements when a lien has not been
released after 60 days from the date of loss.
Proposed law specifies an insurance company or its authorized agent may submit proof of
full payment, a copy of the most recent letter of guarantee from each holder of a lien that has
not been released indicating the payoff amount, and evidence of two attempts to contact the
lienholder.
Proposed law specifies if payment is made by check, proof of payment must consist of the
front and back of the paid check listing all endorsements of the named payees. Further
specifies the evidence needed for electronic transfer payments, including a screenshot of
payment submissions along with a certification the payment was not returned.
Proposed law provides the insurance company shall sign a hold harmless affidavit on an
office of motor vehicles approved form.
Proposed law further provides the office of motor vehicles may charge a fee of $100 or less.
(Amends R.S. 32:707(I)(1)(b)(iv))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Transportation,
Highways and Public Works to the original bill:
1. Make technical changes.
2. Remove a provision that prohibited the notarized signature or electronic signature
of the owner who has received or is to receive a total loss settlement relative to
any document, including an original or certified copy of a power of attorney,
supporting an application for certificate of ownership or certificate of salvage title
by an insurer or an agent of an insurer.
3. Modify proof of payment language when a lien has not been released in seven
days to authorize the insurer or its agent to provide proof of full payment and a
copy of the most recent letter of guarantee from the lien holder indicating the
payoff amount.
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Prepared by Archana Cadge. 4. Clarify that payments made by check must consist of a copy of the front and back
of the paid check listing all endorsements of the named payees.
5. Add a requirement that any screenshot of payment submission certify that the
payoff funds were not returned by the lienholder.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Transportation, Highways,
and Public Works to the engrossed bill
1. Changes the release date of liens from within 7 days of satisfaction to after 60
days from the date of loss.
2. Adds evidence of two attempts to contact the leinholder to the list of
supplemental documents to be submitted with the application for title.
3. Adds a requirement for the insurance company to sign a hold harmless
agreement.
4. Adds authority for the office of motor vehicles to charge a fee of no more than
$100 for each transaction.
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Prepared by Archana Cadge.