With the passing of Nevada Senate Bill 29 on March 29, 2021, Nevada Revised Statutes Chapter 487 has been amended to allow the appointment of salvage title agents, who are given the authority to deem a vehicle a total loss, through the Department of Motor Vehicles (DMV). The DMV now delegates approved third-party agents to process salvage titles on their behalf, thus freeing up Nevada DMV resources for other important tasks. Here are a few of the key takeaways:
Salvage Title Agent Requirements
Before March 29, 2021, the Nevada Department of Motor Vehicles was responsible for administering salvage titles in the State. For a person to become a salvage title agent they must meet the following requirements to become registered:
Fingerprints: Applicants must be fingerprinted and grant permission for the DMV to forward the fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigations (FBI).
Fee: A fee must accompany the fingerprints for processing in an amount not to exceed the cost charged by the Central Repository FBI.
Surety Bond: Agents must hold a bond in an amount no less than $50,000. A deposit equal to the bond amount may be made with the State Treasurer in lieu of a bond.
Why Is a Surety Bond Required for Salvage Title Agents?
The DMV, being a regulatory agency, must abide by stringent legislation to operate. With the addition of a third-party contracted agent to the salvage vehicle titling process, financial safeguards must be in place for the protection of the public from independent parties. The surety bond a great financial tool that involves a third-party surety company to provide, not only financial protection but a screening source preventing disreputable individuals from obtaining registration (no bond, no registration).
The $50,000 bond is utilized by the DMV to guarantee if the agent does not comply with Chapter 487 of the Nevada Revised Statutes there will be financial restitution available to damaged parties. For example, if the agent does not submit fees to the DMV that they have collected from the public, the DMV can pursue a claim on the Salvage Title Agent Bond to recover the costs.