28-2091

28-2091. Salvage certificate of title; stolen
vehicle certificate of title; nonrepairable vehicle certificate of
title; recovered vehicles; violation; classification;
definitions

A. If a vehicle that is subject to titling or registration pursuant to this chapter
becomes a salvage vehicle, stolen vehicle 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 shall submit an application, as determined by the insurance
company or its authorized agent, to the department within thirty days after the title is
properly assigned by the owner to the insurance company, with all liens released, on a
form prescribed by the department for either a salvage certificate of title, stolen
vehicle certificate of title or nonrepairable vehicle certificate of title. The selected
title shall include the following:

1. A properly endorsed certificate of title.

2. A lien satisfaction, if applicable.

3. The appropriate fees.

B. Within thirty days after oral or written acceptance by the owner of an offer in
settlement of total loss, if an insurance company or its authorized agent is unable to
obtain the documents prescribed by subsection A, paragraphs 1 and 2 of this section, the
insurance company or its agent, on a form provided by the department, may submit an
application to the department for a salvage certificate of title, stolen vehicle
certificate of title or nonrepairable vehicle certificate of title. The application shall
include evidence that the insurance company or its agent has made two or more written
attempts to obtain the documents prescribed by subsection A, paragraphs 1 and 2 of this
section. The application shall include the appropriate fees prescribed by subsection A,
paragraph 3 of this section. The insurance company shall indemnify and hold harmless the
department for any claims resulting from the issuance of a salvage certificate of title,
stolen vehicle certificate of title or nonrepairable vehicle certificate of title
pursuant to this subsection.

C. Except for vehicles registered pursuant to section 28-2482, 28-2483 or 28-2484,
if the owner retains possession of a salvage vehicle or nonrepairable vehicle, the owner
shall comply with this section before receiving a total loss settlement from the
insurance company or otherwise disposing of the vehicle.

D. Any other owner of a vehicle that is a salvage vehicle or nonrepairable vehicle
shall apply for a salvage certificate of title or nonrepairable vehicle certificate of
title pursuant to this section.

E. On receipt of a proper application, the department shall issue a salvage
certificate of title, stolen vehicle certificate of title or nonrepairable vehicle
certificate of title for the vehicle.

F. If the department issues a nonrepairable vehicle certificate of title for a
vehicle, the registration of the vehicle is cancelled. The front of a nonrepairable
vehicle certificate of title shall be branded with the word "nonrepairable". The
ownership of a vehicle for which a nonrepairable vehicle certificate of title has been
issued shall not be reassigned more than two times on that certificate of title. If a
nonrepairable vehicle certificate of title is issued for a vehicle, the department shall
not issue any further certificate of title for that vehicle.

G. An owner of a vehicle that is not a salvage vehicle who sells the vehicle as
scrap or for purposes of dismantling or destroying shall assign the certificate of title
to the purchaser, and the purchaser shall comply with section 28-2094.

H. On sale of the vehicle, an owner of a salvage vehicle for which a salvage
certificate of title has been obtained or an owner of a nonrepairable vehicle for which a
nonrepairable vehicle certificate of title has been obtained shall assign and deliver the
salvage certificate of title or nonrepairable vehicle certificate of title to the
purchaser and shall notify the department of the name and address of the purchaser.

I. Except as provided in subsection L of this section, the department shall issue a
certificate of title to a vehicle that has been issued a salvage certificate of title or
stolen vehicle certificate of title as a result of a total loss settlement by reason of
theft if the vehicle is recovered and was not wrecked or stripped of essential parts and
the insurance company or its authorized agent submits an affidavit to the department in a
form prescribed by the department stating either of the following:

1. The vehicle is a recovered theft and both of the following:

(a) The vehicle was not wrecked or stripped of essential parts.

(b) To the insurance company's or its authorized agent's actual knowledge, no air
bag or component part necessary to the proper function of the air bag system deployed in
the vehicle or was removed from the vehicle.

2. The vehicle is a recovered theft and, to the insurance company's or its
authorized agent's actual knowledge, an air bag or an air bag module deployed in the
vehicle or was removed from the vehicle. The insurance company or its authorized agent
shall list the location in the vehicle of each deployment or removal of an air bag or an
air bag module.

J. On receipt of an affidavit submitted pursuant to subsection I, paragraph 2 of
this section, the department shall mark its records to indicate the deployment or removal
of the air bag or air bag module from the vehicle and the location of each deployment or
removal.

K. The insurance company or its authorized agent shall give the purchaser of a
vehicle that is a recovered theft, as described in subsection I of this section, a copy
of the affidavit submitted pursuant to subsection I of this section.

L. If the vehicle is a recovered theft and components of the vehicle's air bag
system, other than the air bag or the air bag module described in subsection I, paragraph
2 of this section, or other parts of the vehicle were removed compromising the functional
integrity of the air bag system or the structural integrity of the vehicle, the insurance
company or its authorized agent shall submit an affidavit to the department in a form
prescribed by the department stating that the vehicle is a recovered theft and that
components of the vehicle's air bag system, other than the air bag or the air bag module
described in subsection I, paragraph 2 of this section, or other parts of the vehicle
were removed compromising the functional integrity of the air bag system or the
structural integrity of the vehicle. The department shall not issue a certificate of
title to the vehicle but may issue a restored salvage certificate of title pursuant to
section 28-2095 if all of the following apply:

1. The vehicle is repairable.

2. The department successfully completes a level three inspection as prescribed in
section 28-2011.

3. The vehicle meets other requirements the director prescribes.

M. Except as provided in subsection N of this section, any person who sells a
vehicle that is issued a certificate of title pursuant to subsection I of this section
and who has actual knowledge that an air bag, an air bag module or components of the
vehicle's air bag system compromising the functional integrity of the air bag system
deployed or were removed from the vehicle shall not fail to disclose the deployment or
removal to the buyer before completion of the sale with the intention of concealing the
deployment or removal. A person who violates this subsection is guilty of a class 1
misdemeanor.

N. Subsection M of this section does not apply to either of the following:

1. An insurance company or its authorized agent who issues an affidavit pursuant to
subsection I of this section unless the insurance company or its authorized agent
intentionally fails to disclose the deployment or removal of an air bag, an air bag
module or components of the vehicle's air bag system that compromise the functional
integrity of the air bag system.

2. A person who owns a vehicle that is issued a certificate of title pursuant to
subsection I of this section if the person repairs or replaces the air bag or air bag
module in the vehicle.

O. Any person who sells a vehicle for which a salvage certificate of title has been
issued and who knows a salvage certificate of title has been issued for the vehicle shall
disclose to the buyer before completion of the sale that the vehicle is a salvage
vehicle.

P. If a vehicle that is titled as a salvage vehicle is to be scrapped, dismantled
or destroyed, the owner or purchaser shall comply with section 28-2094.

Q. The provisions of this chapter that refer to titles apply to salvage
certificates of title, stolen vehicle certificates of title and nonrepairable vehicle
certificates of title issued pursuant to this section unless they conflict with this
section.

R. If a component part of a vehicle on which the vehicle identification number is
affixed is to be replaced and if the vehicle is being repaired by a person other than its
owner, the person shall notify the owner in writing and in the manner prescribed by the
department that the part has been replaced, and the owner shall comply with section
28-2165. This subsection does not apply if the department has not issued a salvage
certificate of title or a nonrepairable certificate of title and if the vehicle
manufacturer or the manufacturer's authorized agent meets all of the following
conditions:

1. The frame is the component part replaced.

2. The frame replacement is performed by the vehicle manufacturer or the
manufacturer's authorized agent.

3. If the original frame contained a vehicle identification number or serial
number, the original vehicle identification number or serial number, in a similar size
and style, is restamped in the replacement frame by the manufacturer or the
manufacturer's authorized agent.

4. Any existing manufacturer warranties remaining on the vehicle are not voided.

5. The manufacturer or the manufacturer's authorized agent obliterates all vehicle
identification numbers or serial numbers contained on the original frame.

S. Except as otherwise provided, a person who violates this section is guilty of a
class 2 misdemeanor.

T. For the purposes of this section:

1. "Essential parts" means integral and body parts, the removal, alteration or
substitution of which will tend to conceal the identity or substantially alter the
appearance of the vehicle.

2. "Nonrepairable vehicle" means a vehicle of a type that is otherwise subject to
titling and registration pursuant to this chapter and that either:

(a) Has no resale value except as a source of parts or scrap metal and the owner or
insurer designates the vehicle solely as a source of parts or scrap metal.

(b) Is a completely stripped vehicle that is recovered from theft and that is
missing the engine or motor, the transmission, all of the bolt-on sheet metal body
panels, all of the doors and hatches, substantially all of the interior components and
substantially all of the grill and light assemblies or that the owner designates has
little or no resale value except its worth as a source of scrap metal or as a source of a
vehicle identification number that could be used illegally.

(c) Is a completely burned vehicle that has been burned to the extent that there
are no usable or repairable body or interior components, tires and wheels, engine or
motor or transmission and that the owner irreversibly designates as having little or no
resale value except as a source of scrap metal or as a source of a vehicle identification
number that could be used illegally.

3. "Nonrepairable vehicle certificate of title" means a vehicle ownership document
issued to the owner of a nonrepairable vehicle.

4. "Salvage vehicle" means a vehicle, other than a nonrepairable vehicle, of a type
that is subject to titling and registration pursuant to this chapter and that has been
stolen, wrecked, destroyed, flood or water damaged or otherwise damaged to the extent
that the owner, leasing company, financial institution or insurance company considers it
uneconomical to repair the vehicle.

5. "Stolen vehicle certificate of title" means a vehicle ownership document issued
to the owner of a vehicle that has been stolen and not recovered.