§ 20-109.1. Surrender of titles to salvage vehicles. - North Carolina Statutes

§ 20‑109.1.  Surrenderof titles to salvage vehicles.

(a)        Option to KeepTitle. – When a vehicle is damaged to the extent that it becomes a salvagevehicle and the owner submits a claim for the damages to an insurer, theinsurer must determine whether the owner wants to keep the vehicle afterpayment of the claim. If the owner does not want to keep the vehicle afterpayment of the claim, the procedures in subsection (b) of this section apply.If the owner wants to keep the vehicle after payment of the claim, theprocedures in subsection (c) of this section apply.

(b)        Transfer toInsurer. – If a salvage vehicle owner does not want to keep the vehicle, theowner must assign the vehicle's certificate of title to the insurer when theinsurer pays the claim. The insurer must send the assigned title to theDivision within 10 days after receiving it from the vehicle owner. The Divisionmust then send the insurer a form to use to transfer title to the vehicle fromthe insurer to a person who buys the vehicle from the insurer. If the insurersells the vehicle, the insurer must complete the form and give it to the buyer.If the buyer rebuilds the vehicle, the buyer may apply for a new certificate oftitle to the vehicle.

(c)        Owner KeepsVehicle. – If a salvage vehicle owner wants to keep the vehicle, the insurermust give the owner an owner‑retained salvage form. The owner mustcomplete the form and give it to the insurer when the insurer pays the claim.The owner's signature on the owner‑retained salvage form must be notarized.The insurer must send the completed form to the Division within 10 days afterreceiving it from the vehicle owner. The Division must then note in its vehicleregistration records that the vehicle listed on the form is a salvage vehicle.

(d)        Theft Claim onSalvage Vehicle. – An insurer that pays a theft loss claim on a vehicle and,upon recovery of the vehicle, determines that the vehicle has been damaged tothe extent that it is a salvage vehicle must send the vehicle's certificate oftitle to the Division within 10 days after making the determination. TheDivision and the insurer must then follow the procedures set in subsection (b)of this section.

(e)        Out‑of‑StateVehicle. – A person who acquires a salvage vehicle that is registered in astate that does not require surrender of the vehicle's certificate of titlemust send the title to the Division within 10 days after the vehicle entersthis State. The Division and the person must then follow the procedures set insubsection (b) of this section.

(f)         Sanctions. –Violation of this section is a Class 1 misdemeanor. In addition to thiscriminal sanction, a person who violates this section is subject to a civilpenalty of up to one hundred dollars ($100.00), to be imposed in the discretionof the Commissioner.

(g)        Fee. – G.S. 20‑85sets the fee for issuing a salvage certificate of title. (1973,c. 1095, s. 1; 1975, c. 716, s. 5; c. 799; 1983, c. 713, s. 94; 1989, c. 455,s. 5; 1993, c. 539, s. 350; 1994, Ex. Sess., c. 24, s. 14(c); 1995, c. 50, s.3; c. 517, s. 33.1.)