Legislative Update
Legislative Update: Seven States Introduce Salvage Industry Legislation
Bills Address Titling Requirements, eSignatures, and Much More
Published February 21, 2023 - Written by IAA, Inc.
Summary
IL, IA, NE, NM, NY, OK, VA introduce bills affecting the salvage industry, covering titles, eSignatures, titling documents, and more. Learn more in this month’s Legislative Update.
IAA, Inc. is dedicated to being proactive when monitoring legislative and regulatory matters that affect our customers and our industry. We believe being engaged with the legislative process is critical to the auto auction industry to promote responsible business conduct and continued healthy expansion. IAA works with lobbyists, insurance companies and other industry participants towards seeing our customers’ needs are met when it comes to legislative matters that may affect the industry.
NEW LEGISLATION
Illinois House Bill 1425
Introduced January 25, 2023
This bill, in provisions concerning total loss claims for vehicles, states that if the registered owner of a vehicle 9 model years of age or older does not agree to retain the vehicle, then the insurance company shall take possession of the vehicle.
IAA’s Position: Neutral
Iowa House Study Bill 85
Introduced January 25, 2023
This bill authorizes an owner of a wrecked or salvage vehicle to apply for and be issued a regular certificate of title without repairing cosmetic damage. The bill exempts a motor vehicle that is considered wrecked or salvage solely due to cosmetic damage from the salvage theft examination otherwise required, and the owner of such vehicle is not required to submit a salvage theft examination certificate when applying for a regular certificate of title. The bill defines “cosmetic damage” as the term is used in the bill.
IAA’s Position: Neutral
Nebraska Legislative Bill 782
Introduced January 18, 2023
This bill would amend the definition of a “salvage vehicle” to include an older model vehicle that was deemed structurally totaled vehicle by a facility that performs consumer care and by an insurance company that insured the vehicle at the time it sustained the damage.
Structurally totaled vehicle means a vehicle totaled due to a kink or crease in a frame rail, a unibody, or a structural component, including an engine cradle or a rear differential if the damage is 75% or more of the actual cash value of the vehicle.
IAA’s Position: Oppose. It is our understanding that this bill would cause many older model cars with minor damages to be deemed salvage.
New Mexico Senate Bill 68
Introduced January 18, 2023
This bill would exempt any supporting documents, including certificates of title, used for conveyance of ownership of a motor vehicle to an insurance company as a result of a total loss insurance settlement from the notarization requirement and would allow these to be signed electronically.
IAA’s Position: Support
New York Assembly 1753
Introduced January 20, 2023
This bill states that whenever a loss in connection with a private automobile is determined by an insurer to be a total loss or constructive total loss under section thirty-four hundred twelve of the insurance law, for the purpose of transferring a salvage certificate of title and the execution of an odometer and disclosure statement in connection with such title, the electronic execution of a power of attorney shall be permissible if signature is authenticated.
IAA’s Position: Support
Oklahoma Senate Bill 753
Introduced January 18, 2023
This bill states that any documents used for a transfer of the ownership of a vehicle to an insurer resulting from the settlement of a total loss claim that require a notarized signature, the documents shall be permitted to be signed electronically pursuant to Section 15-109 of Title 12A of the Oklahoma Statutes. These supporting documents shall include but are not limited to vehicle powers of attorney forms and an odometer statement.
IAA’s Position: Support
Virginia House Bill 1661
Amended January 26, 2023
The bill would allow an insurance company to obtain a non-repairable title when the certificate of title or salvage certificate is unavailable. The bill specifies the requirements for this new process.
IAA’s Position: Support
For more information about IAA's legislative and regulatory activities, contact:
Katerina Dotzeva
Director of Government Affairs, IAA
kdotzeva@iaai.com
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