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Committee approves transfer-on-death vehicle-title bill after insurance language removed
Summary
The Appropriations Committee passed Senate File 39, which creates a recorded beneficiary-designation form that transfers vehicle title at death. The committee removed insurance-related language after industry testimony and added clarifications on required documentation and recording.
The Appropriations Committee passed Senate File 39 with amendments that establish a recorded beneficiary-designation form to transfer motor vehicle titles at the death of the owner or last surviving owner.
Senator Olson, sponsor of the bill, described the measure as a process modeled in other states to allow individuals to designate a beneficiary for a vehicle title as an alternative to probate. The bill would create a statutory form (identified in committee discussion as a new statute, 30-1-2-104.1) that county clerks or the Department of Transportation would make available. The form must include vehicle identifiers, the phrase “transfer on death to,” notarization and recording in the county records. When the designated beneficiary presents the recorded form and proof of death to the county clerk and pays the applicable fee, the clerk would issue a new certificate of title in the beneficiary’s name.
The bill specifies that title transfers under the designation would remain subject to liens, security interests and other encumbrances recorded against the vehicle. Senator Olson said the provision was emphasized after bankers raised concerns and that it is a “belt-and-suspenders” clarification to ensure existing creditor rights follow the vehicle.
County clerks and the Department of Transportation testified on implementation details. County clerks said they would coordinate form development with the Department of Transportation, provide the form to the public, and record executed forms. Clerks requested statutory clarification that a beneficiary may present a recorded form or a copy and suggested requiring a certified copy of a death certificate as proof of death. The Department of Transportation told the committee it would provide a PDF form at no cost to county clerks.
Insurance industry witnesses asked the committee to remove language copied from the transfer-on-death deed for real property that required insurance coverage to remain on the vehicle for 60 days after transfer. State Farm and the National Association of Mutual Insurance Companies argued that vehicle insurance is person-specific and that the insurance language created coverage and underwriting concerns. The committee voted to strike the insurance provisions on pages 7–8 of the bill to conform the statute to motor-vehicle realities.
Committee amendments also clarified that a beneficiary may present a recorded form or a copy and that a certified copy of a death certificate should be acceptable proof of death. The committee adopted the changes and voted the bill do pass as amended, with a roll-call vote recorded 7–0.
Votes at a glance Senate File 39 — Do pass with amendments (committee): 7 aye, 0 no.
Speakers quoted or referenced in this article are listed in the speaker roster below.
