Connecticut State Title Processing Procedures

1. What form of Connecticut title must an insurer obtain in connection with the sale of a vehicle that has been acquired through the settlement of a claim?
2. What documents must an insurer provide to Copart in order to sell a vehicle on a Salvage Title?
3. What documents must an insurer provide to Copart in order to sell a vehicle on a Salvage Title - Parts Only?
4. What documents must an insurance company provide to Copart in order to obtain a Certificate of Title (clean) on a recovered theft vehicle that is recovered substantially intact without substantial damage?
5. What steps must an insurer take in Connecticut to process an ownerretained vehicle?
6. What legal duties are imposed upon a lienholder following satisfaction of the lien?

1. What form of Connecticut title must an insurer obtain in connection with the sale of a total loss vehicle?
   
    Pursuant to Connecticut Motor Vehicles Code § 14-16c(a)(1)
   
   
   1. Any insurance company which takes possession of a motor vehicle for which a certificate of title has been issued in this state, that has been declared a total loss , in and that is offered for sale in this state by such insurance company or its agent as a result of the settlement of a claim for damage or theft, shall stamp the word 'SALVAGE' in oneinch-high letters not to exceed three inches in length on the vehicle's certificate of title and shall attach to such certificate of title a copy of the appraiser's damage report for such totalled motor vehicle, except that if the insurance company determines that such motor vehicle has ten or more major component parts which are damaged beyond repair and must be replaced, the insurance company shall stamp the words 'SALVAGE PARTS ONLY' in one-inch-high letters not to exceed three inches in length on the vehicle's certificate of title. A copy of such certificate shall be sent by the insurance company to the Department of Motor Vehicles.
   2. Any insurance company which takes possession of a motor vehicle for which a certificate of title has been issued in any state other than this state that has been declared a total loss and that is offered for sale in this state by such insurance company or its agent as a result of the settlement of a claim for damage or theft, shall attach to such certificate of title a copy of the appraiser's damage report for such totalled motor vehicle.
   
   Pursuant to Connecticut Motor Vehicles Code § 14-16c(c), The person, firm, company or corporation required to stamp "SALVAGE" on the certificate of title shall stamp the following statement on the face of any original or copy of such certificate issued in accordance with this section: "WARNING: ALL PURCHASERS OF THE MOTOR VEHICLE DESCRIBED HEREIN MUST RECORD THEIR NAME AND ADDRESS ON THE REVERSE SIDE. THIS VEHICLE CANNOT BE REGISTERED OR RETITLED WITHOUT PASSING INSPECTION UNDER SECTION 14-103a. THIS DOCUMENT MUST BE SUBMITTED AT THE TIME OF INSPECTION."
   
   Connecticut Motor Vehicles Code § 14-149a(a)(2) defines “major component part to mean one of the following parts of a motor vehicle: (A) The engine, (B) the transmission, (C)the right or left front fender, (D) the hood, (E) a door allowing entrance to or egress from the passenger compartment of the vehicle, (F) the front or rear bumper, (G) the right or left rear quarter panel, (H) the deck lid, tailgate or hatchback, (I) the trunk floor pan, (J) the cargo box of a pickup, (K) the frame, or if the vehicle has a unitized body, the supporting structure or structures which serve as the frame, (L) the cab of a truck, (M) the body of a passenger vehicle, or (N) any other part of a motor vehicle which the Commissioner of Motor Vehicles determines is comparable in design or function to any of the parts listed in subparagraphs (A) to (M), inclusive, of this subdivision. [Connecticut Motor Vehicle Code § 14-149a(a)(2)] back to top
   
   
2. What documents must an insurer provide to Copart in order to sell a vehicle on a Salvage Title?
   
   The insurer shall provide Copart with a Certificate of Title or a comparable ownership document issued by another state or jurisdiction (either endorsed over to the insurer or accompanied by a power of attorney), an odometer disclosure statement, a release of any liens, an appraiser's damage report, an ACV, and a cost of repair estimate.
   
   The insurer, or Copart as their agent, shall stamp the word “SALVAGE” in oneinch-high letters not to exceed three inches in length on the vehicle’s Certificate of Title and shall stamp the following statement on the face of any original or copy of such certificate issued in accordance with this section: "WARNING: ALL PURCHASERS OF THE MOTOR VEHICLE DESCRIBED HEREIN MUST RECORD THEIR NAME AND ADDRESS ON THE REVERSE SIDE. THIS VEHICLE CANNOT BE REGISTERED OR RETITLED WITHOUT PASSING INSPECTION UNDER SECTION 14-103a. THIS DOCUMENT MUST BE SUBMITTED AT THE TIME OF INSPECTION."
   
   Thereafter, the insurer, or Copart as their agent, shall copy the stamped Certificate of Title and give the original of such Certificate of Title with a copy of the appraiser's damage report attached thereto to any subsequent purchaser. The name and address of any such purchaser must be recorded on the reverse side of the original and the copy. The copy shall serve as a record of transfer of the total loss motor vehicle.
   
    [Connecticut Motor Vehicle Code § 14-16c] back to top
   
   
3. What documents must an insurer provide to Copart in order to sell a vehicle on a Salvage Title – Parts Only?
   
   The insurer shall provide Copart with a Certificate of Title or a comparable ownership document issued by another state or jurisdiction (either endorsed over to the insurer or accompanied by a power of attorney), an odometer disclosure statement, a release of any liens, an appraiser's damage report, an ACV, and a cost of repair estimate.
   
   If the insurer determines that such motor vehicle has ten or more major component parts which are damaged beyond repair and must be replaced, the insurer, or Copart as their agent, shall stamp the words “SALVAGE PARTS ONLY” in “oneinch-high letters not to exceed three inches in length on the vehicle’s Certificate of Title and shall stamp the following statement on the face of any original or copy of such certificate issued in accordance with this section: "WARNING: ALL PURCHASERS OF THE MOTOR VEHICLE DESCRIBED HEREIN MUST RECORD THEIR NAME AND ADDRESS ON THE REVERSE SIDE. THIS VEHICLE CANNOT BE REGISTERED OR RETITLED WITHOUT PASSINGINSPECTION UNDER SECTION 14-103a. THIS DOCUMENT MUST BE SUBMITTED AT THE TIME OF INSPECTION."
   
   Thereafter, the insurer, or Copart as their agent, shall copy the stamped Certificate of Title and give the original of such Certificate of Title with a copy of the appraiser's damage report attached thereto to any subsequent purchaser. The name and address of any such purchaser must be recorded on the reverse side of the original and the copy. The copy shall serve as a record of transfers of the total loss motor vehicle.
   
   [Connecticut General Statutes Section 14-149a; 14-16c] back to top
   
   
4. What documents must an insurer provide to Copart in order to obtain a Certificate of Title (clean) on a recovered theft vehicle that is recovered substantially intact without substantial damage?
   
   When a vehicle has been stolen, the insurer shall provide Copart with a Certificate of Title from the State of Connecticut (either endorsed over to the insurer or accompanied by a power of attorney), an odometer disclosure statement or a letter stating mileage was unknown at time of theft, and a release of any liens.
   
   Copart will submit these documents along with an Application for an Unrecovered Theft Title (Form H-13) and the appropriate fee to the Department of Motor Vehicles for processing.
   
   Thereafter, the Department of Motor Vehicles shall return the Certificate of Title in the name of the insurer directly to the insurer.
   
   If the vehicle is recovered, the Unrecovered Theft Title or Certificate of Title or a comparable ownership document issued by another state or jurisdiction (either endorsed over to the insurer or accompanied by a power of attorney), an odometer disclosure statement, a release of any liens, an appraiser's damage report, an ACV and a cost of repair will be returned to Copart by the insurer in order to obtain the appropriate title depending upon the percentage of the damage to the vehicle.
   
   If a recovered theft vehicle’s damage is less than 15% of the retail value or the damage is less than $1,000 as evidenced by an insurer’s damage appraisal report, the vehicle can be sold on a clean title. However, the insurer needs to also provide Copart with a letter to the Department of Motor Vehicles like the sample below: 
   
   State of Connecticut
   Department of Motor Vehicles
   60 State Street
   Wethersfield, CT 06109
    
   
   Re: Our Claim #:
   Our Insured:
   Insured Vehicle:
   VIN #:
   Date of Theft:
   Salvage Dealer: Copart Salvage Auto Auctions
   Salvage Lot #
   
   
   Dear Sir/Madam:
   
   The above vehicle in question was stolen on ___________ and recovered on _____________.
   
   As stated in the provision of Connecticut State Statute Chapter 246, Section 14-16c, Subsection e, we are attaching this letter to the title. The statute states:
   
   
   “(e) Notwithstanding the provisions of this section, a motor vehicle for which a Certificate of Title has been issued in this state, that has been declared a total loss in settlement of a claim of theft, having damage not exceeding (1) fifteen percent (15%) of the retail value of such motor vehicle as stated in the National Automobile Dealers Association Used Car Guide, Eastern Edition, or (2) one thousand dollars as evidence by an insurance adjuster’s damage appraisal report, shall not be required to have its Certificate of Title stamped in accordance with the provisions of this section provided proof of such damage is attached to such certificate.”
   
   Accordingly, this vehicle should not be stamped salvage.

   Sincerely, 
   
   

   ---

   Copart, acting under a power of attorney for the insurer, will then sell the vehicle at auction and reassign the insurer’s Title to the purchaser.
   
   [Connecticut Motor Vehicles Code § 14-16c(e)] back to top
   
   
5. What steps must an insurer take in Connecticut to process an ownerretained vehicle?
   
   Pursuant to Connecticut Motor Vehicles Code § 14-16c(a)(2)(A):
   
   Any person, firm or corporation which is a self-insurer and owns a motor vehicle for which a certificate of title has been issued in this state, that has been declared a total loss and that is offered for sale in this state by such self-insurer or its agent, shall stamp the word 'SALVAGE' in one-inch-high letters not to exceed three inches in length on the vehicle's certificate of title and shall attach to such certificate of title a copy of the appraiser's damage report for such totalled motor vehicle, except that if such self-insurer determines that such motor vehicle has ten or more major component parts which are damaged beyond repair and must be replaced, the self-insurer shall stamp the words 'SALVAGE PARTS ONLY' in one-inch-high letters not to exceed three inches in length on the motor vehicle's certificate of title. Any person, firm or corporation which is insured other than by means of self-insurance and owns such a motor vehicle, shall forward the vehicle's certificate of title to the company insuring such vehicle or the company paying the totalled claim. Such insurer shall stamp the word 'SALVAGE' in one-inch-high letters not to exceed three inches in length on the certificate of title except that if the insurance company determines that such motor vehicle has ten or more major component parts which are damaged beyond repair and must be replaced, the insurer taking possession of such motor vehicle shall stamp the words 'SALVAGE PARTS ONLY' in one-inch-high letters not to exceed three inches in length on the motor vehicle's certificate of title and shall return such certificate to such person, firm or corporation. A copy of such certificate shall be sent by the person, firm or corporation to the Department of Motor Vehicles. back to top
   
   
6. What legal duties are imposed upon a lienholder following satisfaction of the lien?
   
   
   1. If the security interest of a lienholder named in a notice of security interest filed by the commissioner is satisfied, he shall, within ten days after demand or, in any event, within thirty days, execute a release of the security interest in the form the commissioner prescribes and mail or deliver the release to the commissioner.
   2. Upon receipt of the release of security interest the commissioner shall file the release and note it upon the record of notices of security interests maintained by him pursuant to section 14-206. [Connecticut Motor Vehicles Code § 14-208] back to top