1.1 A bill for an act
1.2 relating to motor vehicles; providing notice requirements related to salvage vehicle
1.3 auctions; authorizing insurers to apply for vehicle title when vehicle is acquired
1.4 through payment of damages; proposing coding for new law in Minnesota Statutes,
1.5 chapter 168A.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. [168A.1502] INSURER APPLICATION FOR TITLE.
1.8 (a) When an insurer licensed to conduct business in Minnesota acquires ownership of a
1.9vehicle through payment of damages and the owner fails to deliver the vehicle's title to the
1.10insurer within 15 days of payment of the claim, the insurer or a designated agent may apply
1.11to the commissioner for a certificate of title, salvage title, or prior salvage title as provided
1.12in this section. This section only applies to vehicles with a title issued by this state.
1.13 (b) At least 15 days prior to applying for a certificate of title, salvage title, or prior salvage
1.14title under this section, the insurer or a designated agent must notify the owner and any
1.15lienholders of record of the insurer's intent to apply for a title. The notice must be sent to
1.16the last known address of the owner and any lienholders by certified mail or by a commercial
1.17delivery service that provides evidence of delivery.
1.18 (c) At least 15 days after notifying the owner and any lienholders under paragraph (b),
1.19the insurer may apply for a certificate of title, salvage title, or prior salvage title from the
1.20commissioner. The application must attest that the insurer or a designated agent:
1.21 (1) paid the claim;
1.22 (2) requested the title or other necessary transfer documents from the owner; and
1Section 1.
REVISOR KRB/BM 25-0025312/06/24
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 1406
NINETY-FOURTH SESSION 2.1 (3) provided notice to the owner and any lienholders as required under paragraph (b).
2.2If the insurer or a designated agent does not attest to completing the requirements under
2.3clauses (1) to (3), the commissioner must reject the application.
2.4 (d) Notwithstanding any outstanding liens, upon proper application, the commissioner
2.5must issue a certificate of title, salvage title, or prior salvage title in the name of the insurer.
2.6Issuance of a certificate of title, salvage title, or prior salvage title extinguishes all existing
2.7liens against the vehicle. If the vehicle is sold, the insurer or a designated agent must assign
2.8the title to the buyer, and the vehicle is transferred without any liens.
2.9 Sec. 2. [168A.1503] REQUIREMENTS UPON UNPAID INSURANCE VEHICLE
2.10CLAIM.
2.11 Subdivision 1.Definition.For purposes of this section, "salvage vehicle auction
2.12company" or "auction company" means a business, organization, or individual that sells
2.13salvage vehicles on behalf of insurers.
2.14 Subd. 2.Notice to auction company.(a) If an insurance company licensed to conduct
2.15business in Minnesota requests an auction company to take possession of a salvage vehicle
2.16that is subject to an insurance claim and the insurance company does not subsequently take
2.17ownership of the vehicle, the insurance company may direct the auction company to release
2.18the vehicle to the owner or lienholder.
2.19 (b) The insurance company must provide the auction company notice by commercial
2.20delivery service, email, or a proprietary electronic system accessible by both the insurance
2.21company and the auction company authorizing the auction company to release the vehicle
2.22to the vehicle's owner or lienholder.
2.23 Subd. 3.Notice to owner or lienholder.(a) Upon receiving notice from an insurance
2.24company, the auction company must send two notices a minimum of 14 days apart to the
2.25owner of the vehicle and any lienholders stating that the vehicle is available to be recovered
2.26from the auction company within 30 days of the date on which the first notice was sent.
2.27Each notice must include an invoice for any outstanding charges owed to the auction company
2.28that must be paid before the vehicle may be recovered.
2.29 (b) Notice under this subdivision must be sent to the address of the owner and any
2.30lienholder on record with the department by certified mail or a commercially available
2.31delivery service that provides proof of delivery.
2.32 Subd. 4.Vehicle deemed abandoned.(a) If the owner or any lienholder does not recover
2.33the vehicle within 30 days of the date on which the first notice was sent under subdivision
2Sec. 2.
REVISOR KRB/BM 25-0025312/06/24 3.13, (1) the vehicle is considered abandoned, (2) the vehicle's certificate of title is deemed
3.2assigned to the auction company, and (3) without surrendering the certificate of title, the
3.3auction company may request, on a form provided by the department, that the department
3.4issue a certificate of title that is free of liens and bears a salvage or prior salvage brand.
3.5 (b) A request under paragraph (a) must be accompanied by a copy of (1) the notice sent
3.6by the insurance company required under subdivision 2, and (2) evidence of delivery of the
3.7notices sent to the owner and any lienholders required under subdivision 3 or evidence that
3.8the notices were undeliverable.
3.9 (c) Notwithstanding any outstanding liens against the vehicle, upon receipt of any fees
3.10charged under section 168A.29, the department must issue a certificate of title that is free
3.11of liens and bears a salvage or prior salvage brand to the auction company in possession of
3.12the vehicle.
3Sec. 2.
REVISOR KRB/BM 25-0025312/06/24