(a) If an insurance company makes a total loss settlement on a motor vehicle, the owner or lienholder of the motor vehicle shall forward the properly endorsed certificate of title to the insurance company within fifteen (15) days after receipt of the settlement funds.

(b)

(1) If an insurance company is unable to obtain the properly endorsed certificate of title within thirty (30) days after disbursing a total loss settlement payment for a motor vehicle that does not have a lien or encumbrance, the insurance company or its agent may request the Office of Motor Vehicle issue a salvage certificate of title or a parts-only certificate of title for the motor vehicle.

(2) The request shall:

(A) Be submitted on each form required by and provided by the office;

(B) Document that the insurance company has made at least two (2) written attempts to obtain the certificate of title and include the documentation with the request;

(C) Include any fees applicable to the issuance of a salvage certificate of title or a parts-only certificate of title; and

(D) Be signed under penalty of perjury.

(c)

(1) If an insurance company is unable to obtain the properly endorsed certificate of title within thirty (30) days after disbursing a total loss settlement payment for a motor vehicle that has a lien or encumbrance, the insurance company or its agent shall submit documentation to the office from the claims file that establishes the lienholder's interest was protected in the total loss indemnity payment for the claim.

(2) The documentation under subdivision (c)(1) of this section shall be:

(A) Submitted with a request for a salvage certificate of title or a parts-only certificate of title for the motor vehicle; and

(B) In addition to the requirements under subdivision (b)(2) of this section.

(d) Upon receipt of a properly endorsed certificate of title or a properly executed request under subsection (b) of this section, the office shall issue a salvage certificate of title or a parts-only certificate of title for the motor vehicle in the name of the insurance company.

(e) The office may promulgate rules and forms for the administration of this section.