NMSA 66-3-4.1. Nonrepairable vehicle certificate; obtaining evidence of

66-3-4.1. Nonrepairable vehicle certificate; obtaining evidence of ownership after total loss payment by an insurance company. A. Prior to the sale or disposal of a nonrepairable vehicle, the owner, owner's agent or salvage pool shall obtain a properly endorsed nonrepairable vehicle certificate from the department and deliver it to the purchaser within twenty days after payment in full for the nonrepairable vehicle and shall also comply with Section 66-3-10.1 NMSA 1978. The department shall accept the endorsed nonrepairable vehicle certificate in lieu of the certificate of ownership or other evidence of ownership when accompanied by an application and other documents and fees as may be required by the department. A vehicle for which a nonrepairable vehicle certificate has been issued shall not be titled or registered for use on the highways of this state. B. If an insurance company makes a total loss settlement on a nonrepairable vehicle and takes possession of that vehicle, either itself or through an agent or salvage pool, the insurance company or an authorized agent of the insurance company shall: (1) stamp the face of the title or manufacturer's certificate of origin with the word "NONREPAIRABLE", in letters no less than one-half inch high, at an angle of approximately forty-five degrees to the text of the title or manufacturer's certificate of origin; and (2) within twenty days after receipt of title by the insurer, free and clear of all liens, submit a copy of the branded title or manufacturer's certificate of title to the department together with documents explaining the reason for branding and shall forward a properly endorsed certificate of title or manufacturer's certificate of origin or other evidence of ownership acceptable to the department together with the proper fee to the department. The department, upon receipt of the title or manufacturer's certificate of origin or other evidence of ownership, shall issue a nonrepairable vehicle certificate for the vehicle. C. Any documents used for conveyance of ownership of a motor vehicle to an insurance company as a result of a total loss insurance settlement shall not require a notarized signature and may be signed electronically. D. If an owner of a nonrepairable vehicle elects to retain possession of the vehicle, the insurance company shall notify the department of the retention on a form prescribed by the department. The insurance company shall also notify the insured or owner of the insured's or owner's responsibility to comply with this section. The owner shall, within twenty days from the date of settlement of the loss, forward a properly endorsed certificate of title or manufacturer's certificate of origin or other evidence of ownership acceptable to the department together with the proper fee to the department. The department, upon receipt of the title or manufacturer's certificate of origin or other evidence of ownership, shall issue a nonrepairable vehicle certificate for the vehicle. E. If a nonrepairable vehicle is not the subject of an insurance settlement, the owner shall, within twenty days from the date of the loss, forward a properly endorsed certificate of title or manufacturer's certificate of origin or other evidence of ownership acceptable to the department together with the proper fee to the department. The department, upon receipt of the title or manufacturer's certificate of origin or other evidence of ownership, shall issue a nonrepairable vehicle certificate for the vehicle. F. If an insurance company makes a total loss payment to a vehicle owner after paying applicable towing and storage charges and takes possession of the vehicle but is unable to obtain a properly endorsed certificate of title or other evidence of ownership acceptable to the department, the insurance company or its authorized agent may request the department to issue a salvage certificate of title or nonrepairable vehicle certificate for the vehicle on a form provided by the department and signed under penalty of perjury by a representative of the insurance company or its authorized agent as follows: (1) the application on a form provided by the department to issue a salvage certificate of title or nonrepairable vehicle certificate shall not occur prior to thirty days after the insurance claim payment and shall include: (a) evidence satisfactory to the department that all owners and lienholders with an interest in the vehicle have been notified in writing and that the requester has attempted two separate requests for the title documents no earlier than ten days apart and been unable to obtain a properly endorsed certificate of title or other acceptable evidence of ownership; (b) evidence of payment of the claim that may be a copy of both sides of the deposited check, or, if paid electronically, a screenshot from the insurer's proprietary claim system showing the payee, the amount of the payment and the date of the payment; and (c) the applicable fee to the department; (2) the attempts by the insurance company or its authorized agent to obtain the certificate of title or other acceptable evidence of title shall be made by certified mail showing evidence of delivery or refusal; and (3) the department, upon receipt of the properly executed request, confirmation of lienholder and vehicle owner indemnification, evidence of certified mail shipment and the required fee described in this subsection, shall issue a salvage certificate of title or nonrepairable vehicle certificate for the vehicle in the name of the insurance company that made the total loss payment on the vehicle. G. The insurance company shall indemnify, defend and hold harmless the department for any and all claims resulting from or arising out of the department's issuance of a salvage certificate of title or nonrepairable vehicle certificate pursuant to the application for title. H. During the total loss settlement, the vehicle owner or the lienholder, if applicable, shall forward to the insurance company a properly endorsed certificate of title within fifteen days after the receipt of settlement funds. I. Evidence of ownership as provided in this section shall be available only for privately owned passenger vehicles. History: 1978 Comp., § 66-3-4.1, enacted by Laws 2025, ch. 27, § 2.