3rd Engrossment - 87th Legislature (2011 - 2012) Posted on 04/20/2012 02:32pm
A bill for an act
relating to motor vehicles; providing for electronic insurance identification cards;
regulating salvage titles; modifying the disclosure of motor vehicle damage;
amending Minnesota Statutes 2010, sections 65B.482, subdivision 1; 168A.01,
subdivisions 6a, 8a, 12a; 168A.151, subdivision 1; 325F.6641; 325F.6644,
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Minnesota Statutes 2010, section 65B.482, subdivision 1, is amended to read:
Every obligor transacting business in this state
shall provide an insurance identification card for each vehicle covered at the time of
initiating each policy of automobile insurance, as defined in section 65B.14, subdivision
2, and at the time of policy renewal. new text beginnew text endWhen an insured has five or more vehicles
registered in this state, the obligor may use the designation "all owned vehicles" on each
identification card in lieu of a specified description. The card must state:
(1) the insured's name;
(2) the policy number;
(3) the policy dates of coverage;
(4) the make, model, and year of the vehicle being covered;
(5) the vehicle identification number or at least the last three digits of that number;
(6) the name of the obligor providing coverage.
Minnesota Statutes 2010, section 168A.01, subdivision 6a, is amended to read:
"High-value vehicle" means a vehicle deleted text beginmanufactured
six or more years before the start of the current model yeardeleted text end that had an actual cash value in
excess of $5,000 before being damaged, or a vehicle with a manufacturer's rating of over
26,000 pounds gross vehicle weightnew text beginnew text end.
Minnesota Statutes 2010, section 168A.01, subdivision 8a, is amended to read:
"Late-model vehicle" means a vehicle deleted text beginmanufactured
in the current model year or the five model yearsdeleted text endnew text beginnew text end immediately preceding the current
deleted text begin modeldeleted text endnew text beginnew text end year.
Minnesota Statutes 2010, section 168A.01, subdivision 12a, is amended to read:
"Older model vehicle" means a vehicle
deleted text begin manufactured in the sixth model year immediately preceding the current model year or
earlier that is not a high-value vehicledeleted text endnew text beginnew text end.
Minnesota Statutes 2010, section 168A.151, subdivision 1, is amended to read:
(a) When an insurer, licensed to conduct business in
Minnesota, acquires ownership of a late-model or high-value vehicle through payment
of damages, the insurer shall immediately apply for a salvage certificate of title or shall
stamp the existing certificate of title with the legend "SALVAGE CERTIFICATE OF
TITLE" in a manner prescribed by the department. Within deleted text begin48 hours of taking possessiondeleted text endnew text beginnew text end of a vehicle through payment of damages, an insurer must
notify the department in a manner prescribed by the department.
(b) A person shall immediately apply for a salvage certificate of title if the person
acquires a damaged late-model or high-value deleted text beginmotordeleted text end vehicle with an out-of-state title
and the vehicle:
(1) is a vehicle that was acquired by an insurer through payment of damages;
(2) is a vehicle for which the cost of repairs exceeds the value of the damaged
(3) has an out-of-state salvage certificate of title as proof of ownership.
(c) A self-insured owner of a late-model or high-value vehicle deleted text beginwhodeleted text endnew text beginnew text end sustains
damage by collision or other occurrence which exceeds deleted text begin70deleted text endnew text beginnew text end percent of its actual cash
value shall immediately apply for a salvage certificate of title. deleted text beginDamage, for the purpose of
this calculation, does not include the actual cost incurred to repair, replace, or reinstall
inflatable safety restraints and other vehicle components that must be replaced due to the
deployment of the inflatable safety restraints.
deleted text end
Minnesota Statutes 2010, section 325F.6641, is amended to read:
(a) If a deleted text beginmotordeleted text endnew text beginnew text end vehiclenew text beginnew text end has sustained damage by collision or other occurrence which
exceeds deleted text begin70deleted text endnew text beginnew text end percent of its actual cash value immediately prior to sustaining damage, the
seller must disclose that fact to the buyer, if the seller has actual knowledge of the damage.
The amount of damage is determined by the retail cost of repairing the vehicle based on a
complete written retail repair estimate or invoicedeleted text begin, exclusive of the actual cost incurred to
repair, replace, or reinstall inflatable safety restraints and other vehicle components that
must be replaced due to the deployment of the inflatable safety restraintsdeleted text end.
(b) The disclosure required under this subdivision must be made in writing on the
application for title and registration or other transfer document, in a manner prescribed
by the registrar of motor vehicles. The registrar shall revise the certificate of title form,
including the assignment by seller (transferor) and reassignment by licensed dealer
sections of the form, the separate application for title forms, and other transfer documents
to accommodate this disclosure. If the seller is a motor vehicle dealer licensed pursuant to
section 168.27, the disclosure required by this section must be made orally by the dealer to
the prospective buyer in the course of the sales presentation.
(c) Upon transfer and application for title to a vehicle covered by this subdivision,
the registrar shall record the term "rebuilt" on the first Minnesota certificate of title and all
subsequent Minnesota certificates of title used for that vehicle.
The disclosure required in this section must be made
in substantially the following form: "To the best of my knowledge, this vehicle has .....
has not ..... sustained damagedeleted text begin, exclusive of any costs to repair, replace, or reinstall air bags
and other components that were replaced due to deployment of air bags,deleted text end in excess of
deleted text begin 70deleted text endnew text beginnew text end percent actual cash value."
Minnesota Statutes 2010, section 325F.6644, subdivision 1, is amended to read:
Section 325F.6641 does not apply to deleted text beginvehicles
that are six years old or older as calculated from the first day of January of the designated
model year or todeleted text end commercial motor vehicles with a gross vehicle weight rating of 16,000
pounds or more or to motorcycles.