PLIllinoismedium
Under 625 ILCS 5/3-117, when an Illinois insurer pays a total loss claim and takes possession of the wrecked vehicle, the insurer must:
ADestroy the vehicle and report destruction to IDOI
BReissue a clean title under the insurer's name
Apply for a salvage certificate of title with the Secretary of State within 20 days
DSell the salvage only at a court-supervised auction
Why this is the answer
Section 3-117 of the Illinois Vehicle Code requires the insurer that takes title to a totaled vehicle to apply to the Secretary of State for a salvage certificate within 20 days of taking possession. The salvage certificate brands the vehicle's history and limits future titling to junk or rebuilt status after inspection. This protects subsequent purchasers from undisclosed total-loss histories and aligns with anti-fraud requirements.
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