(1) An owner who scraps, dismantles or destroys a manufactured home or mobile home for which a certificate of title has been issued, and a person who purchases a manufactured home or mobile home as scrap or to be dismantled or destroyed for which a certificate of title has been issued, shall make such an indication on the back of the certificate of title and shall immediately cause the certificate of title and any other documents required by the State Tax Commission to be mailed or delivered to the commission for cancellation.

(2) An insurance company which as a result of paying a total loss claim becomes the owner of a mobile home or manufactured home and obtains the insured’s certificate of title, within seventy-two (72) hours after obtaining the title shall apply to the State Tax Commission for a new certificate of title, surrendering with its application the current certificate of title, including documentation to show if the title applied for is for a salvage mobile home or salvage manufactured home, and including a signed statement on original company letterhead that states: ( ) collision damage, ( ) flood damage, ( ) fire damage, ( ) wind damage, or ( ) other damage. If the damage is “other damage,” the company shall describe the nature of the damage. The insurance company shall staple this statement to the certificate of title and make a notation on the face of the certificate of title. The application shall be made by the insurance company in the manner and form prescribed and provided by the State Tax Commission. The provisions of this subsection do not apply to a mobile home or manufactured home that is twenty (20) years old or older.

(3) Brands appearing on certificates of title issued by this state or another state that reveal a pertinent fact or facts about a mobile home or manufactured home shall be continued on certificates of title issued by this state. The State Tax Commission shall brand a certificate of title with “collision damage,” “flood damage,” “fire damage,” “wind damage,” or “other damage” where the immediate previous certificate of title was issued by this state. The State Tax Commission shall brand a certificate of title to be issued by this state with the same or other brands where the immediate previous certificate of title was issued by another state and such title indicates the same or other brands are appropriate. Such certificate of title shall not attest to the condition of the mobile home or manufactured home at the time the certificate of title is issued or to whether the mobile home or manufactured home has been rebuilt according to any applicable federal or state laws, rules or regulations.