This bill, introduced in the Minnesota House of Representatives, establishes procedures for insurers and salvage vehicle auction companies regarding vehicle titles when an insurance company acquires a vehicle through a damage payment or when a salvage vehicle remains unclaimed.

Key Provisions:

1. Insurer Application for Title (§168A.1502):

   • If an insurer acquires a vehicle through a damage claim but the owner fails to provide the title within 15 days, the insurer can apply for a certificate of title, salvage title, or prior salvage title from the Minnesota Department of Public Safety.
     
   • The insurer must notify the vehicle owner and any lienholders at least 15 days before applying for the title via certified mail or a commercial delivery service.
     
   • The application must attest that:
     1. The insurer paid the claim.
     2. The insurer requested the title from the owner.
     3. The insurer provided notice as required.
        
   • If the requirements are met, the state will issue a title in the insurer's name, extinguishing all existing liens.

2. Requirements for Unclaimed Salvage Vehicles (§168A.1503):

   • If an insurance company requests a salvage vehicle auction company to take possession of a damaged vehicle but does not take ownership, the insurer may instruct the auction company to release the vehicle to the owner or lienholder.
     
   • The insurer must notify the auction company of this decision via an electronic system, email, or commercial delivery service.
     
   • The auction company must send two notices (at least 14 days apart) to the owner and lienholders, stating that the vehicle must be recovered within 30 days and detailing any outstanding charges.
     
   • If the owner or lienholder does not reclaim the vehicle within 30 days, the vehicle is deemed abandoned, and:
     1. The title is assigned to the auction company.
     2. The auction company can request a new title (with a salvage or prior salvage brand) from the state, which will be issued free of liens.
        

Impact:

• Establishes clear rules for insurers and auction companies handling salvage vehicles.
• Addresses issues of unclaimed vehicles by streamlining the title acquisition process.
• Protects lienholders and vehicle owners by requiring official notice before transferring the title.