41-1a-1005 - Salvage vehicle -- Declaration by insurance company -- Surrender of title -- Salvage certificate of title.
41-1a-1005. Salvage vehicle -- Declaration by insurance company -- Surrender oftitle -- Salvage certificate of title.
(1) (a) (i) Except as provided in Subsection (1)(a)(iii) or (iv), if an insurance companydeclares a vehicle a salvage vehicle and takes possession of the vehicle for disposal, or aninsurance company pays off the owner of a vehicle that is stolen and not recovered, the insurancecompany shall within 10 days from the settlement of the loss surrender to the division theoutstanding certificate of title, properly endorsed, or other evidence of ownership acceptable tothe division.
(ii) The division shall then issue a salvage certificate in the insurance company's name.
(iii) The division shall issue a salvage certificate in an insurance company's name nosooner than 30 days from the settlement of the loss if the insurance company:
(A) declares a vehicle a salvage vehicle;
(B) issues settlement payment to the registered owner of the vehicle;
(C) has contacted the owner of the vehicle at least two times requesting certificate of titleor other evidence of ownership acceptable to the division and the owner has not responded to therequests; and
(D) has presented the division evidence of the settlement and evidence that the insurancecompany has complied with the requirements of this Subsection (1)(a)(iii) on a form prescribedby the division.
(iv) The division shall issue a salvage certificate in an insurance company's name nosooner than 30 days from the receipt of an improperly endorsed certificate of title if the insurancecompany:
(A) declares a vehicle a salvage vehicle;
(B) has contacted the owner of the vehicle at least two times requesting correction of theimproperly endorsed certificate of title and the owner of the vehicle has not responded to therequests; and
(C) has presented the division evidence of the settlement, the improperly endorsedcertificate of title, and evidence that the insurance company has complied with the requirementsof this Subsection (1)(a)(iv) on a form prescribed by the division.
(v) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, thedivision shall make rules establishing the requirements for an insurance company to prove that ithas complied with the requirements of Subsection (1)(a)(iii) or (iv) to receive a salvagecertificate.
(b) (i) If the owner of a salvage vehicle retains possession of the vehicle, the insurancecompany shall within 10 days from the settlement of the loss notify the division of the retentionon a form prescribed by the division.
(ii) The insurance company shall notify the owner of the vehicle of his responsibility tocomply with this section.
(iii) The owner shall within 10 days from the settlement of the loss surrender to thedivision the properly endorsed certificate of title or other evidence of ownership acceptable to thedivision.
(iv) The division shall then issue a salvage certificate in the owner's name.
(c) (i) When a salvage vehicle is not the subject of an insurance settlement, a self-insureror an owner who is uninsured shall within 10 days of the theft or major damage surrender to thedivision the properly endorsed certificate of title or other evidence of ownership acceptable to the
division.
(ii) The division shall then issue a salvage certificate in the owner's name.
(d) (i) If a dealer licensed under Title 41, Chapter 3, Part 2, Licensing, takes possessionof any salvage vehicle for which there is not already issued a branded title or salvage certificatefrom the division or another jurisdiction, the dealer shall within 10 days surrender to the divisionthe certificate of title or other evidence of ownership acceptable to the division.
(ii) The division shall then issue a salvage certificate in the applicant's name.
(2) Any person, insurance company, or dealer licensed under Title 41, Chapter 3, Part 2,Licensing, who fails to obtain a salvage certificate as required in this section or who sells asalvage vehicle without first obtaining a salvage certificate is guilty of a class B misdemeanor.
(3) This section does not apply to a vehicle:
(a) that has an undamaged, wholesale value of $2,000 or less; or
(b) if a salvage certificate has been issued by another state or jurisdiction for the salvagevehicle.
(4) Upon sale or disposal of a salvage vehicle, the seller shall deliver to the purchaser theproperly endorsed salvage certificate within 48 hours as required in Section 41-1a-1310, or if theseller is a dealer licensed under Title 41, Chapter 3, Part 2, Licensing, the dealer shall complywith Section 41-3-301.
(5) Except as provided in Subsection (1), this chapter does not apply to a motor vehiclethat has been stolen or taken without the consent of the owner until the motor vehicle has beenrecovered, and then it applies only if the motor vehicle is a salvage vehicle.
Amended by Chapter 270, 2008 General Session