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S.B. 179 Enrolled

             1     

SALVAGE VEHICLE AMENDMENTS

             2     
2008 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Carlene M. Walker

             5     
House Sponsor: Eric K. Hutchings

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Motor Vehicle Act by amending provisions relating to salvage
             10      vehicles.
             11      Highlighted Provisions:
             12          This bill:
             13          .    requires the Motor Vehicle Division to issue an insurance company a salvage
             14      certificate no sooner than 30 days from the date of settlement if the insurance
             15      company:
             16              .    declares a vehicle a salvage vehicle;
             17              .    issues settlement payment to the registered owner of the vehicle;
             18              .    has contacted the owner of the vehicle at least two times requesting certificate of
             19      title or other evidence of ownership and the owner of the vehicle has not
             20      responded; and
             21              .    provides certain evidence to the Motor Vehicle Division;
             22          .    requires the Motor Vehicle Division to issue an insurance company a salvage
             23      certificate no sooner than 30 days from receipt of an improperly endorsed certificate
             24      of title if the insurance company:
             25              .    declares a vehicle a salvage vehicle;
             26              .    has contacted the owner of the vehicle at least two times requesting correction
             27      of the improperly endorsed certificate of title and the owner of the vehicle has
             28      not responded; and
             29              .    provides certain evidence to the Motor Vehicle Division;


             30          .    grants the Motor Vehicle Division rulemaking authority to establish the requirements
             31      for an insurance company to receive a salvage certificate in certain circumstances;
             32      and
             33          .    makes technical changes.
             34      Monies Appropriated in this Bill:
             35          None
             36      Other Special Clauses:
             37          None
             38      Utah Code Sections Affected:
             39      AMENDS:
             40          41-1a-1005, as last amended by Laws of Utah 1992, Chapter 234 and renumbered and
             41      amended by Laws of Utah 1992, Chapter 1
             42     
             43      Be it enacted by the Legislature of the state of Utah:
             44          Section 1. Section 41-1a-1005 is amended to read:
             45           41-1a-1005. Salvage vehicle -- Declaration by insurance company -- Surrender of
             46      title -- Salvage certificate of title.
             47          (1) (a) (i) [If] Except as provided in Subsection (1)(a)(iii) or (iv), if an insurance
             48      company declares a vehicle a salvage vehicle and takes possession of the vehicle for disposal, or
             49      an insurance company pays off the owner of a vehicle that is stolen and not recovered, the
             50      insurance company shall within ten days from the settlement of the loss surrender to the division
             51      the outstanding certificate of title, properly endorsed, or other evidence of ownership acceptable
             52      to the division.
             53          (ii) The division shall then issue a salvage certificate in the insurance company's name.
             54          (iii) The division shall issue a salvage certificate in an insurance company's name no
             55      sooner than 30 days from the settlement of the loss if the insurance company:
             56          (A) declares a vehicle a salvage vehicle;
             57          (B) issues settlement payment to the registered owner of the vehicle;


             58          (C) has contacted the owner of the vehicle at least two times requesting certificate of
             59      title or other evidence of ownership acceptable to the division and the owner has not responded
             60      to the requests; and
             61          (D) has presented the division evidence of the settlement and evidence that the
             62      insurance company has complied with the requirements of this Subsection (1)(a)(iii) on a form
             63      prescribed by the division.
             64          (iv) The division shall issue a salvage certificate in an insurance company's name no
             65      sooner than 30 days from the receipt of an improperly endorsed certificate of title if the
             66      insurance company:
             67          (A) declares a vehicle a salvage vehicle;
             68          (B) has contacted the owner of the vehicle at least two times requesting correction of
             69      the improperly endorsed certificate of title and the owner of the vehicle has not responded to
             70      the requests; and
             71          (C) has presented the division evidence of the settlement, the improperly endorsed
             72      certificate of title, and evidence that the insurance company has complied with the requirements
             73      of this Subsection (1)(a)(iv) on a form prescribed by the division.
             74          (v) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             75      division shall make rules establishing the requirements for an insurance company to prove that it
             76      has complied with the requirements of Subsection (1)(a)(iii) or (iv) to receive a salvage
             77      certificate.
             78          (b) (i) If the owner of a salvage vehicle retains possession of the vehicle, the insurance
             79      company shall within ten days from the settlement of the loss notify the division of the retention
             80      on a form prescribed by the division.
             81          (ii) The insurance company shall notify the owner of the vehicle of his responsibility to
             82      comply with this section.
             83          (iii) The owner shall within ten days from the settlement of the loss surrender to the
             84      division the properly endorsed certificate of title or other evidence of ownership acceptable to
             85      the division.


             86          (iv) The division shall then issue a salvage certificate in the owner's name.
             87          (c) (i) When a salvage vehicle is not the subject of an insurance settlement, a self-insurer
             88      or an owner who is uninsured shall within ten days of the theft or major damage surrender to
             89      the division the properly endorsed certificate of title or other evidence of ownership acceptable
             90      to the division.
             91          (ii) The division shall then issue a salvage certificate in the owner's name.
             92          (d) (i) If a dealer licensed under Title 41, Chapter 3, Part 2, Licensing, takes possession
             93      of any salvage vehicle for which there is not already issued a branded title or salvage certificate
             94      from the division or another jurisdiction, the dealer shall within ten days surrender to the
             95      division the certificate of title or other evidence of ownership acceptable to the division.
             96          (ii) The division shall then issue a salvage certificate in the applicant's name.
             97          (2) Any person, insurance company, or dealer licensed under Title 41, Chapter 3, Part
             98      2, Licensing, who fails to obtain a salvage certificate as required in this section or who sells a
             99      salvage vehicle without first obtaining a salvage certificate is guilty of a class B misdemeanor.
             100          (3) This section does not apply to a vehicle:
             101          (a) that has an undamaged, wholesale value of $2,000 or less; or
             102          (b) if a salvage certificate has been issued by another state or jurisdiction for the salvage
             103      vehicle.
             104          (4) Upon sale or disposal of a salvage vehicle, the seller shall deliver to the purchaser
             105      the properly endorsed salvage certificate within 48 hours as required in Section 41-1a-1310 , or
             106      if the seller is a dealer licensed under Title 41, Chapter 3, Part 2, Licensing, the dealer shall
             107      comply with Section 41-3-301 .
             108          (5) Except as provided in Subsection (1), this chapter does not apply to a motor vehicle
             109      that has been stolen or taken without the consent of the owner until the motor vehicle has been
             110      recovered, and then it applies only if the motor vehicle is a salvage vehicle.


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