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S.B. 255 Enrolled

             1     

VEHICLE SALVAGE AMENDMENTS

             2     
2012 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Curtis S. Bramble

             5     
House Sponsor: Don L. Ipson

             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          .    amends the requirement that an owner of a self-insured vehicle or an owner who is
             14      uninsured surrender to the Motor Vehicle Division the properly endorsed certificate
             15      of title or other evidence of ownership acceptable to the Motor Vehicle Division
             16      within 10 days of damage; and
             17          .    makes technical changes.
             18      Money Appropriated in this Bill:
             19          None
             20      Other Special Clauses:
             21          None
             22      Utah Code Sections Affected:
             23      AMENDS:
             24          41-1a-1005, as last amended by Laws of Utah 2008, Chapter 270
             25     
             26      Be it enacted by the Legislature of the state of Utah:
             27          Section 1. Section 41-1a-1005 is amended to read:
             28           41-1a-1005. Salvage vehicle -- Declaration by insurance company -- Surrender of
             29      title -- Salvage certificate of title.


             30          (1) (a) (i) Except as provided in Subsection (1)(a)(iii) or (iv), if an insurance company
             31      declares a vehicle a salvage vehicle and takes possession of the vehicle for disposal, or an
             32      insurance company pays off the owner of a vehicle that is stolen and not recovered, the
             33      insurance company shall within 10 days from the settlement of the loss surrender to the
             34      division the outstanding certificate of title, properly endorsed, or other evidence of ownership
             35      acceptable to the division.
             36          (ii) The division shall then issue a salvage certificate in the insurance company's name.
             37          (iii) The division shall issue a salvage certificate in an insurance company's name no
             38      sooner than 30 days from the settlement of the loss if the insurance company:
             39          (A) declares a vehicle a salvage vehicle;
             40          (B) issues settlement payment to the registered owner of the vehicle;
             41          (C) has contacted the owner of the vehicle at least two times requesting certificate of
             42      title or other evidence of ownership acceptable to the division and the owner has not responded
             43      to the requests; and
             44          (D) has presented the division evidence of the settlement and evidence that the
             45      insurance company has complied with the requirements of this Subsection (1)(a)(iii) on a form
             46      prescribed by the division.
             47          (iv) The division shall issue a salvage certificate in an insurance company's name no
             48      sooner than 30 days from the receipt of an improperly endorsed certificate of title if the
             49      insurance company:
             50          (A) declares a vehicle a salvage vehicle;
             51          (B) has contacted the owner of the vehicle at least two times requesting correction of
             52      the improperly endorsed certificate of title and the owner of the vehicle has not responded to
             53      the requests; and
             54          (C) has presented the division evidence of the settlement, the improperly endorsed
             55      certificate of title, and evidence that the insurance company has complied with the
             56      requirements of this Subsection (1)(a)(iv) on a form prescribed by the division.
             57          (v) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the


             58      division shall make rules establishing the requirements for an insurance company to prove that
             59      it has complied with the requirements of Subsection (1)(a)(iii) or (iv) to receive a salvage
             60      certificate.
             61          (b) (i) If the owner of a salvage vehicle retains possession of the vehicle, the insurance
             62      company shall within 10 days from the settlement of the loss notify the division of the retention
             63      on a form prescribed by the division.
             64          (ii) The insurance company shall notify the owner of the vehicle of his responsibility to
             65      comply with this section.
             66          (iii) The owner shall within 10 days from the settlement of the loss surrender to the
             67      division the properly endorsed certificate of title or other evidence of ownership acceptable to
             68      the division.
             69          (iv) The division shall then issue a salvage certificate in the owner's name.
             70          (c) (i) When a salvage vehicle is not the subject of an insurance settlement, a
             71      self-insurer or an owner who is uninsured shall within 10 days of the [theft or major] damage
             72      surrender to the division the properly endorsed certificate of title or other evidence of
             73      ownership acceptable to the division.
             74          (ii) The division shall then issue a salvage certificate in the owner's name.
             75          (d) (i) If a dealer licensed under Title 41, Chapter 3, Part 2, Licensing, takes possession
             76      of any salvage vehicle for which there is not already issued a branded title or salvage certificate
             77      from the division or another jurisdiction, the dealer shall within 10 days surrender to the
             78      division the certificate of title or other evidence of ownership acceptable to the division.
             79          (ii) The division shall then issue a salvage certificate in the applicant's name.
             80          (2) Any person, insurance company, or dealer licensed under Title 41, Chapter 3, Part
             81      2, Licensing, who fails to obtain a salvage certificate as required in this section or who sells a
             82      salvage vehicle without first obtaining a salvage certificate is guilty of a class B misdemeanor.
             83          (3) This section does not apply to a vehicle:
             84          (a) that has an undamaged, wholesale value of $2,000 or less; or
             85          (b) if a salvage certificate has been issued by another state or jurisdiction for the


             86      salvage vehicle.
             87          (4) Upon sale or disposal of a salvage vehicle, the seller shall deliver to the purchaser
             88      the properly endorsed salvage certificate within 48 hours as required in Section 41-1a-1310 , or
             89      if the seller is a dealer licensed under Title 41, Chapter 3, Part 2, Licensing, the dealer shall
             90      comply with Section 41-3-301 .
             91          (5) Except as provided in Subsection (1), this chapter does not apply to a motor vehicle
             92      that has been stolen or taken without the consent of the owner until the motor vehicle has been
             93      recovered, and then it applies only if the motor vehicle is a salvage vehicle.


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