A bill for an act relating to applications for a motor vehicle salvage certificate of title by an insurer without surrendering the certificate of title or manufacturer’s or importer’s statement of origin, and making penalties applicable.

This bill changes how insurers obtain salvage titles for totaled vehicles in Iowa. Insurers can now apply for a salvage title without requiring the physical title or manufacturer's statement of origin if they either: (1) provide an affidavit showing two written attempts to contact the previous owner/lienholders (and failed), or (2) submit electronic documents (like a power of attorney or duplicate title application) proving ownership transfer for a "total loss" vehicle (where repair costs plus salvage value meet or exceed the vehicle's pre-damage value). Applicants must pay a $20 fee, provide proof of settlement payment to the previous owner, and include the required documents. Violating these rules is a simple misdemeanor punishable by a $135 fine.