SB1946 Summary

• Amends Illinois Vehicle Code to create new Section 3-117.3 establishing procedures for insurance companies and salvage dealers to obtain junking or salvage certificates free of liens after conducting record searches for vehicle owners and lienholders.

• Requires insurance companies and salvage dealers to provide certified mail notice to vehicle owners and lienholders at least 30 days before transferring title, and allows owners or lienholders to dispute the transfer within 30 days or petition a court within 90 days.

• Permits insurance companies to obtain salvage certificates when unable to obtain an endorsed certificate of title within 30 days of payment to the owner or lienholder.

• Allows salvage dealers to obtain salvage certificates for vehicles in their possession when an insurance company denies coverage or fails to take ownership within 45 days.

• Prohibits insurance companies and salvage dealers from selling salvage vehicles with titles obtained under these new provisions to anyone not authorized to purchase salvage vehicles; establishes criminal penalties for violations including Class 3 felony for unauthorized acquisition or sale of certificates.