(a) Except as provided under subsection (g) of this section, when a registered or unregistered motor vehicle, for which a title has been issued by the Department, is transferred as salvage as a result of a total loss insurance settlement, the insurance company or its authorized agent shall send the certificate of title of the vehicle to the Department within 30 days from the date of settlement. Upon receipt of the certificate of title and appropriate fee, the Department shall issue a salvage certificate. Such salvage certificate is deemed to meet all state proof of ownership.
(b) If the owner of any registered or unregistered motor vehicle for which a title has been issued by the Department receives a total loss insurance settlement for the vehicle and chooses to retain ownership of the vehicle as owner retained salvage, the insurance company shall either comply with the requirements in paragraph (a) of this section or require the owner of the vehicle to procure a salvage certificate from the Department prior to paying the total loss insurance settlement.
(c) Every scrap processor which takes in a scrapped or dismantled vehicle without a title shall upload the vehicle identification number into the National Motor Vehicle Title Information System (NMVTIS) by the close of business the next business day and shall have the vehicle cleared by a Delaware State Police auto theft technician before the vehicle is scrapped, dismantled, or altered in any way.
(d) The Department shall issue to the seller a receipt in the name of the seller, agent, or owner for the salvage certificate. The seller or vehicle owner or agent shall keep such records and receipt for a period of 3 years from the date of sale and shall make such records and receipts available for inspection and examination by any police officer during the regular working hours of such business, seller, or agent.
(e) A person who fails, neglects, or refuses to maintain the records and information required by this section, or who refuses to permit the examination of the records or information by persons permitted by this section to do so, is guilty of a class B misdemeanor as defined in Chapter 42 of Title 11, and is subject to the penalties proscribed therein.
(f) The recordkeeping requirements outlined in this section is applicable to scrap processors, salvage dealers, junk dealers, and insurance companies or their authorized agents. The record keeping requirement and penalties for failure to maintain such records does not apply to individual owners who choose to retain ownership of their total loss vehicle as owner retained salvage.
(g) (1) An insurance company that does not receive, within 30 days from the date of the total loss insurance settlement, the properly endorsed certificate of title for a motor vehicle acquired as salvage may apply to the Department for a salvage certificate in the name of the insurance company, without surrendering the certificate of title for the vehicle.
(2) Regardless of the existence of a lien against the vehicle, the Department shall issue a salvage certificate in the name of the insurance company, free and clear of all liens, if the application is accompanied by all of the following:
a. Evidence of payment of the total loss claim.
b. An affidavit from the insurance company or its authorized agent stating that it has made at least 2 written requests for the properly endorsed certificate of title that were addressed to the vehicle owner of record and any known lienholders and sent by certified mail or commercial courier whose regular business is delivery service and that provides proof of delivery.
(h) (1) A licensed auto auction may apply for a salvage certificate in the name of the auto auction without surrendering the certificate of title if all of the following exist:
a. The auto auction took possession of a motor vehicle at the request of an insurance company.
b. The motor vehicle is the subject of an insurance claim.
c. There is no total loss insurance settlement resulting in transfer of ownership of the motor vehicle to the insurance company.
d. The motor vehicle has been abandoned at the facility of the auto auction for more than 30 days.
(2) Regardless of the existence of a lien against the vehicle, the Department shall issue a salvage certificate in the name of the auto auction, free and clear of all liens, if the application is accompanied by evidence that the auto auction made at least 2 written attempts to have the vehicle removed from the facility that were addressed to the vehicle owner of record and any known lienholders and sent by certified mail or commercial courier whose regular business is delivery service and that provides proof of delivery.