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ARIZONA STATE SENATE
Fifty-Fifth Legislature, Second Regular Session
salvage vehicle titles; insurance companies
Purpose
Modifies requirements relating to the documents an insurance company must include to apply for a salvage, stolen or nonrepairable vehicle certificate of title.
Background
If a vehicle that is subject to the issuance of a certificate of title or registration becomes a salvage vehicle, stolen or nonrepairable vehicle and is acquired by an insurance company as a result of a total loss insurance settlement, the insurance company or its authorized agent must submit an application to the Arizona Department of Transportation (ADOT) within 30 days after the certificate of title is assigned by the owner to the insurance company. The application must be submitted with all liens released, on a form authorized by ADOT for a salvage vehicle, stolen vehicle or nonrepairable vehicle certificate of title (A.R.S. § 28-2091).
The selected certificate of title must include: 1) a properly endorsed
certificate of title;
2) a lien satisfaction, if applicable; and 3) the appropriate fees. An
insurance company or authorized agent that is unable to obtain a properly
endorsed certificate of title and a lien satisfaction may apply for a salvage,
stolen or nonrepairable certificate of title if the company or agent has made
at least two written attempts to obtain the documents (A.R.S.
§ 28-2091).
Statute defines salvage vehicle as a vehicle, other than a nonrepairable vehicle, that: 1) is subject to the issuance of a certificate of title and registration; and 2) has been stolen, wrecked, destroyed, subjected to flood or water damage or otherwise damaged to the extent that the owner, leasing company, financial institution or insurance company considers it uneconomical to repair the vehicle (A.R.S. § 28-2091).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Specifies that a notarized signature is not required on the certificate of title or any supporting documents required for a transfer from a vehicle owner to an insurance company as a result of a total loss insurance settlement to meet the requirement that a salvage, stolen or nonrepairable certificate of title include a properly endorsed certificate of title.
2. Requires the written attempts by an insurance company or authorized agent to obtain the properly endorsed certificate of title and, if applicable, lien satisfaction, to only be sent to a lien holder or vehicle owner that has not provided the documents.
3. Makes technical changes.
4. Becomes effective on the general effective date.
House Action
TRANS 2/2/22 DP 12-0-0-0
3rd Read 2/15/22 59-0-1
Prepared by Senate Research
February 24, 2022
RA/JM/sr