Legislative Update
Legislative Update | January 2019
Published January 21, 2019 - Written by IAA, Inc.
Summary
Insurance Auto Auctions actively monitors and engages on legislative and regulatory matters to help promote responsible business conduct and continued healthy expansion of the salvage auto auction industry. IAA's Government Affairs Department works with lobbyists, insurance companies and others to support legislative bills that are beneficial to the industry and all of its participants.
New Bills
Montana House Bill 115
Introduced January 7, 2019
Proposed bill would revise certain motor vehicle laws to remove the notary requirement for vehicle titles.
IAA supports this proposal for the streamlining effect it should have.
Nebraska Legislative Bill 270
Introduced January 15, 2019
Proposed bill would revise the salvage vehicle definition by removing the “late model vehicle” causing older model vehicles with little damage be titled as salvage. The bill will harm: (1) consumers by needlessly requiring a “salvage” designation on their vehicle title; (2) insurers by decreasing the sales proceeds of vehicles sold; (3) vehicle rebuilders by increasing their costs.
IAA opposes this proposal.
North Dakota House Bill 1407
Introduced January 10, 2019
Proposed bill provides a process for an insurance company to apply for a salvage title when it has paid a total loss claim on a vehicle but is unable to obtain the vehicle title from the owner. In addition, it allows a salvage pool that is in possession of a vehicle that was brought to the salvage pool at the direction of an insurance company to apply for a salvage title if the insurance company has denied coverage and the vehicle is abandoned at the salvage pool facility by the vehicle owner or lienholder.
IAA supports this bill.
South Carolina House Bill 3310
Introduced January 10, 2019
This bill proposes a procedure for an insurance company or its agent to obtain a salvage certificate of title for a vehicle when a claimant fails to deliver the title to the insurance company or its agent under certain circumstances.
IAA supports this proposal for addressing gaps in the statutory scheme.
Virginia House Bill 1780/Senate Bill 1364
Introduced January 9, 2019
Proposed bill removes the requirement that a vehicle be late model in order to meet the definition of salvage vehicle. This bill will have the same negative impact as the Nebraska Legislative Bill 270 (see above).
IAA opposes this proposal.
Wyoming House Bill 15
Introduced January 8, 2019
This bill proposes to remove the notary requirement for vehicle titles, title applications and bills of sale.
IAA supports this proposal for streamlining the transfer process.
Enacted Bills
Ohio Notary Public Modernization Act
Enacted
Several changes will now affect the issuance of motor vehicle titles.
Exempts insurance companies seeking salvage certificates of title from notarization and verification requirements in certain circumstances. This change becomes effective March 20, 2019.
Until January 1, 2021, clerks of court may not issue salvage certificates of title if the only basis for issuing the title is information reported from the National Motor Vehicle Title Information System (NMVTIS).
This provides relief to buyers who purchased total loss vehicles with clear titles.
Creates the National Motor Vehicle Title Information System Utilization Study Committee, tasked with studying and reporting on:
The advantages and disadvantages of utilizing information reported to NMVTIS for making decisions on issuing salvage certificates of title in Ohio;
The accuracy of that information; allowing that information to be shared in the same manner as information is shared under Ohio law that allows the public to access certain motor vehicle title information online; and
How other states utilize this information.
Transfers oversight of the Statewide Salvage Motor Vehicle Database to the Department of Public Safety or a third-party provider pursuant to a contract with the Department.
IAA supported these changes when they were part of Senate Bill 263.
For more information about IAA's legislative and regulatory activities, contact:
Katerina Dotzeva
Director of Government Affairs, Insurance Auto Auctions
