Bill Analysis — Senate Bill 343, Revise Vehicle Sale Laws (May 6, 2021)
Summary
Bill analysis of Senate Bill 343, Revise Vehicle Sale Laws, Second Edition, for the Senate Commerce and Insurance committee, dated May 6, 2021. It states the bill would modify the law related to motor vehicle dealers and motor vehicle sales to clarify that dealers are only required to provide interim insurance coverage and notification that a purchaser's financing has been approved and a certificate of origin or title executed for conditionally delivered vehicles. The bill clarifies that obtaining insurance for the purchased vehicle is solely the responsibility of the purchaser and not the dealer. The act would be effective when it becomes law.
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“Bill Analysis — Senate Bill 343, Revise Vehicle Sale Laws (May 6, 2021).”
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SENATE BILL 343:
Revise Vehicle Sale Laws.
2021-2022 General Assembly
Committee: Senate Commerce and Insurance. If favorable, Date: May 6, 2021
re-refer to Rules and Operations of the Senate
Introduced by: Sens. B. Jackson, Perry, Sawyer Prepared by: Wendy Ray
Analysis of: Second Edition Staff Attorney
OVERVIEW: Senate Bill 343 would modify the law related to motor vehicle dealers and motor vehicle
sales to clarify that dealers are only required to provide interim insurance coverage and notification
that a purchaser's financing has been approved and a certificate of origin or title executed for
conditionally delivered vehicles, and that it is the responsibility of the purchaser to insure the purchased
vehicle.
CURRENT LAW: The law generally requires a motor vehicle dealer to transfer a vehicle's certificate of
origin or title to the purchaser of a vehicle at the time the vehicle is delivered to the purchaser. However,
G.S. 20-75.1 allows a dealer to deliver the vehicle to the purchaser on the condition that the purchaser will
obtain financing for the vehicle, at which time the certificate of origin or title would be executed. The law
further provides that the dealer's insurance policy covers a conditionally delivered vehicle until financing
is approved and the certificate of origin or title is executed, and the dealer is required to notify the
purchaser's insurer of the purchase after approval of the purchaser's financing and execution of the
certificate of origin or title.
BILL ANALYSIS: Senate Bill 343 clarifies the law by adding language to G.S. 20-75.1 to clarify that
its provisions only apply to conditionally delivered vehicles, that the notice following approval of
financing and execution of the certificate of origin or title can be made to the purchaser or the purchaser's
insurer, and that it is the solely the responsibility of the purchaser and not the dealer to obtain insurance
for the purchased vehicle.
EFFECTIVE DATE: The act would be effective when it becomes law.
Legislative Analysis
Jeffrey Hudson
Division
Director S343-SMSU-22(e2)-v-1 919-733-2578
This bill analysis was prepared by the nonpartisan legislative staff for the use of legislators in their deliberations and does not constitute an official statement of legislative intent.
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