Iowa State Title Processing Procedures

1. What form of title must an insurer obtain in connection with the sale of a vehicle that has been acquired through the settlement of a claim?
2. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle on a Certificate of Title with Salvage Designation?
3. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle on Junking Certificate?
4. What documents must an insurer provide to CarBuyerUSA in order to sell a recovered theft vehicle recovered substantially intact with no substantial damage, where title is still in the name of the insured?
5. What steps must an insurer take in Iowa to process an owner-retained vehicle?
6. What legal duties are imposed upon a lienholder following satisfaction of the lien?

1. What form of title must an insurer obtain in connection with the sale of a vehicle that has been acquired through the settlement of a claim?
   
   Iowa Code § 321.52, excerpts of which are provided below, sets forth some of the legal requirements pertaining to titling of salvage vehicles in Iowa.
   
   
   The purchaser or transferee of a motor vehicle for which a certificate of title is issued which is sold for scrap or junk shall surrender the certificate of title, properly endorsed and signed by the previous owner, to the county treasurer of the county of residence of the transferee, and shall apply for a junking certificate from the county treasurer, within thirty days after assignment of the certificate of title. [See Iowa Code § 321.52(2); also see Iowa Admin. Code § 761-400.23(321), subsection 400.23(1)]
   
   A vehicle on which ownership has transferred to an insurer of the vehicle as a result of a settlement with the owner of the vehicle arising out of damage to, or unrecovered theft of, the vehicle shall be deemed to be a wrecked or salvage vehicle and the insurer shall comply with this subsection to obtain a salvage certificate of title within thirty days after the date of assignment of the certificate of title of the vehicle.[See Iowa Code § 321.52(4); also see Iowa Admin. Code 761-405.6(321), subsection 405.6(2)]
   
   However, if ownership of a stolen vehicle has been transferred to an insurer organized under the laws of this state or admitted to do business in this state, or if the transfer was the result of a settlement with the owner of the vehicle arising from damage to or the unrecovered theft of the vehicle, and if the insurer certifies to the county treasurer on a form approved by the department that the insurance company has received one or more written estimates which state that the retail cost of repairs including labor, parts, and other materials of all damage to the vehicle is less than three thousand dollars, the county treasurer shall issue to the insurance company the regular certificate of title and registration receipt without this designation. [See Iowa Code § 321.52(4); also see Iowa Admin. Code § 761-405.7(321), subsection 405.7(1) and (2)] back to top
   
   
2. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle on a Certificate of Title with Salvage Designation?
   
   The insurer shall provide CarBuyerUSA with a Certificate of Title or a comparable ownership document issued by another state or jurisdiction (either endorsed over to the insurer by insured or endorsed by insurer accompanied by a power of attorney from insured to insurer), an odometer disclosure statement, a release of any liens, and a damage disclosure statement.
   
   CarBuyerUSA will submit these documents along with an Application for Certificate of Title and the appropriate fee to the Office of Vehicle Services for processing. Thereafter, the Office of Motor Vehicle Services shall issue a Certificate of Title with Salvage Designation in the name of the insurer.
   
   CarBuyerUSA, acting under a power of attorney for the insurer, will then sell the vehicle at auction and reassign the insurer’s Certificate of Title with Salvage Designation to the purchaser. [See Iowa Code §§ 321.52(4) and 321.69; also see Iowa Admin. Code §§ 761-405.3(321), 761-405.6(321), subsection 405.6(2)] back to top
   
   
3. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle on Junking Certificate?
   
   The insurer shall provide CarBuyerUSA with a Certificate of Title or a comparable ownership document issued by another state or jurisdiction (either endorsed over to the insurer by insured or endorsed by insurer accompanied by a power of attorney from insured to insurer), a release of any liens, a damage disclosure statement, and a request for CarBuyerUSA to obtain a Junking Certificate. Thereafter, CarBuyerUSA will submit these documents along with an Application for a Junking Certificate to a Demolisher and the appropriate fee to the Office of Vehicle Services for processing.
   
   In the event that the insurer cannot obtain the above documents, the insurer must send in a request for CarBuyerUSA to obtain a Junking Certificate. CarBuyerUSA will submit an “Abandonment Form” to the Impound Office. The Impound Office will send out notice to the owner, and if after 30 days, the owner does not contact the Impound Office, an Authority to Transfer and/or Demolish a Vehicle will be issued and returned to CarBuyerUSA. Thereafter, CarBuyerUSA will submit this document along with an Application for a Junking Certificate and the appropriate fee to the Office of Vehicle Services for processing.
   
   In both of the above cases, the Office of Motor Vehicle Services shall issue a Junking Certificate in the name of the insurer.
   
   CarBuyerUSA, acting under a power of attorney for the insurer, will then sell the vehicle at auction and reassign the insurer’s Junking Certificate to the purchaser. [See Iowa Code §§ 321.52(2) and (3) and 321.69); also see Iowa Admin. Code §§ 761- 400.23(321), subsection 400.23(1)] back to top
   
   
4. What documents must an insurer provide to CarBuyerUSA in order to sell a recovered theft vehicle recovered substantially intact with no substantial damage, where title is still in the name of the insured?
    
   When a vehicle has been stolen, the insurer shall provide CarBuyerUSA with a Certificate of Title or a comparable ownership document issued by another state or jurisdiction (either endorsed over to the insurer by insured or endorsed by insurer accompanied by a power of attorney from insured to insurer), an odometer disclosure statement with last known mileage, and a release of any liens.
   
   After receipt of these documents, CarBuyerUSA will submit these documents along with an Application for Certificate of Title and the appropriate fee to the Office of Vehicle Services for processing.
   
   Thereafter, the Office of Vehicle Services shall issue a Certificate of Title with Salvage Designation in the name of the insurer. Upon receipt, CarBuyerUSA will forward the Certificate of Title with Salvage Designation to the insurer for safekeeping.
   
   If the vehicle is recovered, the Certificate of Title with Salvage Designation along with a damage disclosure statement will be returned to CarBuyerUSA by the insurer. If the recovered theft vehicle has damages less than $3,000, CarBuyerUSA will submit the Certificate of Title with Salvage Designation to the Office of Vehicle Services along with an Application for Certificate of Title, a certification to the county treasurer on a form approved by the department that the insurance company has received one or more written estimates which state that the retail cost of repairs are less than three thousand dollars, and the Office of Vehicle Services will issue a Certificate of Title (aka “Clean Title”). Otherwise, the vehicle will remain on a Certificate of Title with Salvage Designation.
   
   Thereafter, CarBuyerUSA, acting upon a power of attorney for the insurer, will then sell the vehicle at auction and reassign the insurer’s Title to the purchaser. [See Iowa Code §§ 321.52(4) and 321.69; also see Iowa Admin. Code § 761-405.7(321), subsection 405.7(1)] back to top
   
   
5. What steps must an insurer take in Iowa to process an owner-retained vehicle?
   
   There are no specific requirements.
   
   
6. What legal duties are imposed upon a lienholder following satisfaction of the lien?
   
   Following satisfaction of lien, the lienholder must note a cancellation of same on the face of the Certificate of Title over the lienholder’s signature, and deliver the Certificate of Title to the County Treasurer where the Certificate of Title was issued. The holder of a security interest discharged by payment who fails to release the security interest within fifteen (15) days after being requested in writing to do so shall forfeit to the person making the payment the sum of twentyfive dollars ($25.00). [See Iowa Code § 321.50(4)] back to top


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