Minnesota Legislature
SF 2804
as introduced - 91st Legislature (2019 - 2020) Posted on 04/08/2019 02:27pm
Current Version - as introduced
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A bill for an act
relating to motor vehicles; allowing an insurer to apply for a title to a vehicle in
certain situations; proposing coding for new law in Minnesota Statutes, chapter
168A.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
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[168A.1502] INSURER APPLICATION FOR TITLE.
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(a) When an insurer licensed to conduct business in Minnesota acquires ownership of a
vehicle through payment of damages and the owner fails to deliver the vehicle's title to the
insurer within 30 days of payment of the claim, the insurer may apply to the commissioner
for a salvage title as provided in this section. This section only applies to vehicles with a
title issued by this state.
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(b) At least 30 days prior to applying for a salvage title under this section, the insurer
must notify the owner and any lienholders of record of the insurer's intent to apply for a
title. The notice must be sent by certified mail to the last known address for the owner and
any lienholders.
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(c) At least 30 days after notifying the owner and any lienholders as provided in paragraph
(b), the insurer may apply for a salvage title from the commissioner. The application must
include:
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(1) proof of payment of the claim;
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(2) proof that the insurer requested the title from the owner; and
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(3) proof that notice was provided to the owner and lienholders as required in paragraph
(b).
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If the insurer does not provide proof of all three items, the commissioner must reject the
application.
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(d) Notwithstanding any outstanding liens, upon proper application, the commissioner
must issue a salvage title in the name of the insurer. This extinguishes all existing liens
against the vehicle. If the vehicle is sold, the insurer must assign this title to the buyer and
the vehicle is transferred without any liens.
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