What form of title must an insurer obtain in connection with the sale of
vehicle that has been acquired through the settlement of a claim?
Pursuant to the Indiana Code §§ 9-22-3-1(a) and 9-22-3-3:
A certificate of salvage title is required for a motor vehicle manufactured within
the last seven (7) model years, including the current model year, where the vehicle
meets any of the following criteria:
(1)An insurance company has determined that it is economically impractical to
repair the wrecked or damaged motor vehicle, motorcycle, semitrailer, or
recreational vehicle and has made an agreed settlement with the insured or
claimant.
(2) The motor vehicle is a flood damaged vehicle.
The Indiana Bureau of Motor Vehicles shall, upon request, determine the fair
market value of a wrecked or damaged motor vehicle, motorcycle, semitrailer, or
recreational vehicle if the fair market value cannot be determined from the
National Automobile Dealers Association (NADA) Official Used Car Guide,
vehicle valuations determined by CCC Information Services, Inc. (CCC), or
valuations determined by such other authorities as are approved by the bureau.
[Indiana Code § 9-22-3-3(b)]
A certificate of salvage title must contain the following information:
(1) The same vehicle information as a certificate of title issued by the department.
(2) The notation "SALVAGE TITLE" prominently recorded on the front and back
of the title.
(3) If the motor vehicle is a flood damaged vehicle, the notation "FLOOD
DAMAGED" prominently recorded on the front and back of the title. [Indiana
Code § 9-22-3-5]
"Flood damaged vehicle" means a passenger motor vehicle that satisfies either of
the following:
(1) The vehicle has been acquired by an insurance company as part of a damage
settlement due to water damage.
(2) The vehicle has been submerged in water to the point that rising water has
reached over the door sill, has entered the passenger or trunk compartment, and
has exposed any electrical, computerized, or mechanical component to water.
(b) The term does not include a passenger motor vehicle that an inspection
conducted by an insurance adjuster or estimator, a motor vehicle repairer, or a
motor vehicle dealer determines:
(1) has no electrical, computerized, or mechanical components that were damaged
by water; or
(2) has one (1) or more electrical, computerized, or mechanical components that
were damaged by water and all such damaged components have been repaired or
replaced. [Indiana Code § 9-22-3-2.5]
"Low speed vehicle" means a four (4) wheeled electrically powered motor vehicle:
(1) with a maximum design speed of not more than thirty-five (35) miles per hour;
(2) with operational and equipment specifications described in 49 CFR 571.500;
(3) that is equipped with:
(A) headlamps;
(B) front and rear turn signal lamps, tail lamps, and stop lamps;
(C) reflex reflectors;
(D) exterior or interior mirrors;
(E) brakes as specified in IC 9-19-3-1;
(F) a windshield;
(G) a vehicle identification number; and
(H) a safety belt installed at each designated seating position; and
(4) that has not been privately assembled as described in IC 9-17-4-1. [Indiana
Code § 9-13-2-94.5]
Form of certificates for Low Speed Vehicle must indicate that the motor vehicle is
a low speed vehicle. [Indiana Code § 9-17-8-3]
NOTE: Per Bureau of Motor Vehicles' memo dated 3/18/08, individuals with SSN
issues will have a hold put on their vehicle titles. No transactions with these titles
can occur without approval of the Title Division. back to top
What documents must an insurer provide to Copart in order to sell a
vehicle on a Certificate of 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 by insured or endorsed by insurer accompanied by a power of
attorney from insured to insurer), an odometer disclosure statement, a release of
any liens, an ACV, and a cost of repair.
If the insurer has a dealer number, Copart, acting under a power of attorney for the
insurer, can sell the vehicle at auction and reassign the insurer’s Certificate of Title
to the purchaser.
However, if the insurer does not have a dealer number, Copart will submit the
above documents along with an Application for Certificate of Title and the
appropriate fee to the Bureau of Motor Vehicles for processing. Thereafter, the
Bureau of Motor Vehicles shall issue a Certificate of Title in the name of the
insurer. Copart, acting under a power of attorney for the insurer, will then sell the vehicle at auction and reassign the insurer’s Certificate of Title to the purchaser.
[140 IAC §§ 6-1-10, 11 and 14] back to top
What documents must an insurer provide to Copart in order to sell a
vehicle on a Certificate of Salvage Title branded “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 by insured or endorsed by insurer accompanied by a power of
attorney from insured to insurer), an odometer disclosure statement, a release of
any liens, an ACV, and a cost of repair.
Copart will submit these documents along with an Application for Certificate of
Title (Form 44049) and the appropriate fee to the Bureau of Motor Vehicles for
processing.
Thereafter, the Bureau of Motor Vehicles shall issue a Certificate of Salvage Title
branded “Salvage Title” in the name of the insurer.
Copart, acting under a power of attorney for the insurer, will then sell the vehicle
at auction and reassign the insurer’s Certificate of Salvage Title branded “Salvage
Title” to the purchaser. [Indiana Code §§ 9-22-3-4 and 11; 140 IAC 6-1-16] back to top
What documents must an insurer provide to Copart in order to sell a
vehicle on a Certificate of Salvage Title branded “Salvage Title-Flood
Damaged”?
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 by insured or endorsed by insurer accompanied by a power of
attorney from insured to insurer), an odometer disclosure statement, a release of
any liens, an ACV, and a cost of repair.
Copart will submit these documents along with an Application for Certificate of
Title (Form 44049) and the appropriate fee to the Bureau of Motor Vehicles for
processing.
Thereafter, the Bureau of Motor Vehicles shall issue a Certificate of Salvage Title
branded “Salvage Title-Flood Damaged” in the name of the insurer.
Copart, acting under a power of attorney for the insurer, will then sell the vehicle
at auction and reassign the insurer’s Certificate of Salvage Title branded “Salvage
Title-Flood Damaged” to the purchaser. [Indiana Code §§ 9-22-3-2.5, 3, and 11;
140 IAC 6-1-16] back to top
What documents must an insurer provide to Copart in order to sell a
recovered theft vehicle recovered substantially intact with no
substantial damage, where title is still in the name of the insured?
When a vehicle has been stolen, 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 by insured or endorsed by insurer
accompanied by a power of attorney from insured to insurer), an odometer
disclosure statement, and a release of any liens.
After receiving these documents, Copart will fill out an Application for Certificate
of Title (Form 44049). This form along with the above documents and the
appropriate fee will be forwarded to the Bureau of Motor Vehicles for processing.
Thereafter, the Bureau of Motor Vehicles will issue a Certificate of Salvage Title
in the name of the insurer and return it to Copart. Upon receipt, Copart will
forward the Certificate of Salvage Title to the insurer for safekeeping.
If that vehicle is recovered, the insurer will return the Certificate of Salvage Title
to Copart. If the vehicle is recovered intact, the Salvage Title may be reversed to a
clean title (with salvage history) if the insurer completes an affidavit and Affidavit
of Restoration is completed by the police to prove vehicle was not rebuilt.
Copart, acting under a power of attorney for the insurer, will then sell the vehicle
at auction and reassign the insurer’s Salvage Certificate of Title to the purchaser.
[Indiana Code §§ 9-22-3-3, 5, and 11(2); 140 IAC 6-1-16] back to top
What steps must an insurer take in Indiana to process an ownerretained vehicle?
Pursuant to Indiana Code § 9-22-3-11(c):
(a) This section applies to the following persons:
(1) An insurance company that declares a wrecked or damaged motor vehicle,
motorcycle, semitrailer, or recreational vehicle that meets at least one (1)
of the criteria set forth in section 3 of this chapter and the ownership of
which is not evidenced by a certificate of salvage title.
(2) An insurance company that has made and paid an agreed settlement for
the loss of a stolen motor vehicle, motorcycle, semitrailer, or recreational
vehicle that:
(A) has been recovered by the titled owner; and
(B) meets at least one (1) of the criteria set forth in section 3 of this
chapter.
(b) (Intentionally omitted)
(c) When the owner of a vehicle described in subsection (a) retains possession of
the vehicle:
(1) the person who possesses the certificate of title shall surrender the
certificate of title to the insurance company described in subdivision (2);
(2) the insurance company that completes an agreed settlement for the vehicle
shall:
(A) obtain the certificate of title; and
(B) submit to the bureau:
(i) the certificate of title;
(ii) the appropriate fee; and
(iii) a request for a certificate of salvage title on a form prescribed by the
bureau; and
(3) after the bureau has received the items set forth in subdivision (2)(B),
the bureau shall issue a certificate of salvage title to the owner. back to top
What legal duties are imposed upon a lienholder following satisfaction
of the lien?
A person having possession of a certificate of title for a motor vehicle, semitrailer,
or recreational vehicle because the person has a lien or an encumbrance on the
motor vehicle, semitrailer, or recreational vehicle must deliver the certificate of
title to the person who owns the motor vehicle, semitrailer, or recreational vehicle
upon the satisfaction or discharge of the lien or encumbrance indicated upon the
certificate of title. A person who violates this procedure commits a Class C
infraction. [Indiana Code § 9-17-5-1] back to top
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