§ 168A.1502 — Insurer Application for Title
Plain-Language Summary
When an insurance company pays a total-loss claim on a vehicle but the owner fails to deliver the title within 15 days, the insurer can apply directly to the state for a new title. The insurer must first notify the owner and any lienholders by certified mail at least 15 days before applying. Once the state issues a title to the insurer, all prior liens on the vehicle are extinguished.
168A.1502 INSURER APPLICATION FOR TITLE.
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Subdivision 1.Authorization.
When an insurer licensed to conduct business in Minnesota acquires ownership of a vehicle through payment of damages and the owner fails to deliver the vehicle’s title to the insurer within 15 days of payment of the claim, the insurer or a designated agent may apply to the commissioner for a certificate of title as provided in this section. This section only applies to vehicles with a title issued by this state. §
Subd. 2.Notice.
At least 15 days prior to applying for a certificate of title under this section, the insurer or a designated agent must notify the owner and any lienholders of record of the insurer’s intent to apply for a title. The notice must be sent to the last known address of the owner and any lienholders by certified mail or by a commercial delivery service that provides evidence of delivery. §
Subd. 3.Application; issuance.
(a) At least 15 days after notifying the owner and any lienholders under subdivision 2, the insurer may apply for a certificate of title from the commissioner. The application must attest that the insurer or a designated agent:
(1) paid the claim;
(2) requested the title or other necessary transfer documents from the owner; and
(3) provided notice to the owner and any lienholders as required under subdivision 2.
(b) If the insurer or a designated agent does not attest to completing the requirements under paragraph (a), clauses (1) to (3), the commissioner must reject the application.
(c) Notwithstanding any outstanding liens, upon proper application and payment of applicable fees, the commissioner must issue a certificate of title in the name of the insurer. Issuance of a certificate of title extinguishes all existing liens against the vehicle. If the vehicle is sold, the insurer or a designated agent must assign the title to the buyer, and the vehicle is transferred without any liens.
History:
History: History:
1Sp2025 c 8 art 2 s 26