HCS/SB 148 - This act modifies various provisions relating to the regulation of salvage motor vehicles.
This act allows the Director of the Department of Revenue to issue temporary permits to individuals who possess motor vehicles that require law enforcement examinations. A person issued a temporary permit under the act may operate the salvage motor vehicle from his or her residence or storage facility to the nearest authorized examination facility and return (Section 301.140).
Under the current law, any insurer which purchases a vehicle that is currently titled in Missouri through the claims adjustment process for which the insurer is unable to obtain a negotiable title, may make application to the Department of Revenue for a salvage certificate of title or junking certificate. This act adds additional consumer protection language to the current law by providing that if the Director of Revenue identifies any additional owner or lienholder who has not been notified by the insurer, the director must inform the insurer of such additional owner or lienholder and the insurer shall notify the additional owner or lienholder of the insured's intent to obtain title as prescribed by law (Section 301.193).
Under the terms of this act, an insurer that purchases a motor vehicle through the claims adjustment process which is subject to a lien may apply for a salvage title or junking certificate without obtaining a lien release. The insurer may request a letter of guarantee indicating the amount of the lien from each lien holder and pay the amount indicated within 10 days of receipt of the letter. Prior to applying for a salvage title or junking certificate, the insurer must provide to each lien holder a copy of the letter of guarantee and proof of payment from the claim file as proof of satisfaction for the lien or encumbrance. The insurer may then submit copies of all letters of guarantee, proof of payment and title for the vehicle or trailer to the Department of Revenue in lieu of a lien release for processing of the application (Section 301.642). This provision is also contained in HB 428 (2013).