12-01 – Implementation of House Bill 1150: Obtaining salvage titles and junking certificate, Aug. 29, 2012

INSURANCE BULLETIN 12-01 Implementation of HB 1150 Issued Aug. 29, 2012

To: All insurance companies in Missouri writing automobile insurance coverage From: John M. Huff, Director Re: Implementation of HB 1150 – Obtaining Salvage Titles and Junking Certificates

The Missouri Department of Insurance, Financial Institutions and Professional Registration has received information from the Missouri Department of Revenue regarding implementation of House Bill 1150, titled “Salvage Motor Vehicles, Scrap Metal Operators, and Statutory Liens.”

House Bill 1150, in part, would allow an insurance company unable to obtain a title on a damaged vehicle from a claimant to apply for a salvage title or junking certificate.

For the insurance industry, the Department of Revenue has prepared a brief overview of the application process, which includes links to pertinent forms available on the Department of Revenue’s website. That overview is included on the following page.

Questions about the application process should be directed to Steve Ahlers of the Motor Vehicle Bureau, Missouri Department of Revenue, at 573-751-8749. Additional assistance is available from DIFP’s Division of Market Regulation at 573-751-2430. Missouri Department of Revenue 2012 Legislation – House Bill 1150 Important Information for Insurance Companies

Insurance Company Applying for a Salvage Title or Junking Certificate When Unable to Obtain Title From Owner (301.193 RSMo):

Beginning August 28, 2012 an insurer that makes a total loss payment can obtain a salvage title or junking certificate when the vehicle owner is unable to provide the title.

An insurance company may obtain a salvage title or junking certificate through this process under the following circumstances:

 The vehicle is currently titled in Missouri;  The insurer makes two written attempts to notify the owner of the intent to obtain the salvage title or junking certificate;  The insurer notifies a lienholder of record (if applicable) of the intent to obtain the salvage title or junking certificate or obtains a notarized lien release;  The insurer completes an Insurance Company Application for Salvage Title or Junking Certificate (Form-5421) accompanied with the following: o Copy of proof of claim payment; o Copies of the two notices sent to the vehicle owner and evidence that such notices were delivered to the owner;  Evidence of delivery is defined as the tracking documentation from an established national postal or parcel delivery service (including but not limited to the US Post Office, Federal Express, United Parcel Service, etc.). o Copy of the written notice to the lienholder or a notarized lien release if a lienholder exists (proof of deliver is not required on the notice to the lienholder); and o $11.00 fee for a salvage title (payable to the Department of Revenue; includes $8.50 title fee and $2.50 processing fee); or o $2.50 processing fee for a junking certificate (payable to the Department of Revenue).  The Insurance Company Application for Salvage Title or Junking Certificate (Form-5421) can be found at: http://dor.mo.gov/forms/5421.pdf

The Insurance Company Application for Salvage Title or Junking Certificate (Form-5421) will be processed in the central office only. Documents and fees should be mailed to:

Motor Vehicle Bureau Complex Unit P.O. Box 2076 Jefferson City, MO 65105-2076

A salvage title or junking certificate will not be issued until 30 days after receipt of the completed application and all required documentation pursuant to 301.193, RSMo.

For detailed information regarding this legislation, see House Bill 1150, Section 301.193, RSMo, at: http://www.house.mo.gov/billtracking/bills121/biltxt/truly/HB1150T.htm