Industry witness tells Senate Transportation Section 8 would speed insurance title transfers

Mark Bender, representing Copart, told the Senate Transportation committee that Section 8 of the draft miscellaneous DMV bill would allow titles transferred from insurance companies to be signed electronically and would remove notary requirements for that targeted transaction. "What section 8 will do will allow the vehicle title to be transferred to an insurance company from the original owner through a streamlined method, and remove the notary requirements. Allows it to be electronically signed," Bender said, adding that the change would not require electronic signing in every case.

Bender described Copart as a national auction service that processes total-loss vehicles on behalf of insurers and said the firm opened a Vermont location in September 2023. He argued the change would reduce administrative touches, cut shipping and mailing delays and speed payment to vehicle owners: "This change to allow electronics will significantly reduce delays ... this entire process could be reduced to one phone call."

Bender presented a map showing that about 40 states allow similar processes either by statute or rule; he noted some states implement via rulemaking rather than statute and that not all transactions are covered uniformly across states. He also cited guidance from national motor-vehicle administration groups and NHTSA supporting electronic processes for certain title transactions.

DMV Deputy Commissioner Matt Russo confirmed Section 8 is narrowly targeted to transfers involving insurers and lienholders and would allow lienholders to receive title copies without mailing them under current statutory language. Committee members asked about implementation timing and whether any states face legal barriers; Bender said Louisiana faces a constitutional limit on signature/notary provisions that makes change impractical there.

Bender offered to provide the committee the map and supporting materials and to answer follow-up questions; DMV staff said they would coordinate on additional details. The committee did not vote on Section 8 during the session.