This bill, introduced in the Minnesota House of Representatives, establishes procedures for insurers and salvage vehicle auction companies regarding vehicle titles in cases involving insurance claims and salvage vehicles.

Key Provisions:

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

   • If an insurer acquires a vehicle through an insurance claim but the owner does not provide the title within 15 days, the insurer can apply for a certificate of title (including salvage or prior salvage title).
   • Before applying, the insurer must notify the owner and lienholders at least 15 days in advance via certified mail or a commercial delivery service.
   • The insurer's application must confirm that the claim was paid, title transfer was requested, and the required notices were sent.
   • If valid, the state will issue a title in the insurer's name, clearing any previous liens.

2. Requirements for Unpaid Insurance Vehicle Claims (§168A.1503):

   • Auction Company Notification:
     • If an insurer requests an auction company to take possession of a salvage vehicle but does not assume ownership, the insurer may instruct the auction company to release the vehicle to the owner or lienholder.
     • Notice must be provided via mail, email, or an electronic system.

• Notice to Owners and Lienholders:

  • The auction company must send two notices (at least 14 days apart) to the vehicle’s owner and any lienholders, informing them that they have 30 days to recover the vehicle.
  • The notice must include an invoice for any outstanding charges.

• Abandoned Vehicle Designation:

  • If the owner or lienholder does not reclaim the vehicle within 30 days, the vehicle is deemed abandoned, and ownership transfers to the auction company.
  • The auction company can request a new title free of liens from the state.

Effects of the Bill:

• Streamlines the title transfer process for insurers acquiring vehicles through insurance claims.
• Ensures proper notification to owners and lienholders before transferring a vehicle.
• Provides a clear process for salvage auction companies to take ownership of unclaimed vehicles while extinguishing prior liens.

This bill aims to clarify ownership transitions of salvage vehicles, preventing disputes and ensuring that insurers and auction companies can efficiently handle unclaimed vehicles.