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Committee hears proposal to allow electronic salvage-title transfers with insurer indemnity
Summary
The committee reviewed language to permit electronic salvage‑title transfers and related documents under a Level‑2 NIST security standard and noted insurer indemnity language requested by DMV; committee members raised concern about whether indemnity language might overreach.
The Transportation Committee considered language on April 7 that would allow insurers to use electronic documents to transfer ownership of totaled vehicles and would include indemnity language protecting the Department of Motor Vehicles.
Damien Leonard, legislative counsel, summarized the proposal: electronic signatures, bills of sale, title and odometer disclosures could be used to issue a salvage certificate; the bill aligns the electronic‑signature definition with the National Institute of Standards and Technology’s June 2017 digital identity guidelines at an intermediate (Level 2) assurance standard.
Leonard said the draft includes a clause that would require an insurer to indemnify and hold harmless the DMV from claims arising from issuance of a salvage certificate using those electronic processes. The chair said there is concern among some members about whether the indemnity in section c might be overly broad and indicated alternative language and further testimony from the originator could be forthcoming.
Committee members were told the provision is not DMV‑originated and that the committee will solicit testimony from the originator and other stakeholders before finalizing the section. No vote was taken before the break.
