What form of title must an insurer obtain in connection with the sale of a
vehicle that has been acquired through the settlement of a claim?
Oklahoma Statutes Title 47, §§ 1105 and 1111, set forth below in pertinent part,
specify the laws applicable to titling of insurance total loss vehicles.
§ 1105. Definitions--Certificate of title--Types--Application--
Information required--Form--Evidence of ownership and compliance
with federal law--Liens and encumbrances--Fees--Notice of nonuse or
theft--Term of title
A. As used in the Oklahoma Vehicle License and Registration Act:
1. "Salvage vehicle" means any vehicle which is within the last ten (10)
model years and which has been damaged by collision or other occurrence
to the extent that the cost of repairing the vehicle for safe operation on the
highway exceeds sixty percent (60%) of its fair market value, as defined
by Section 1111 of this title, immediately prior to the damage. For
purposes of this section, actual repair costs shall only include labor and
parts for actual damage to the suspension, motor, transmission, frame or
unibody and designated structural components;
2. [intentionally omitted]
3 "Flood-damaged vehicle" means a salvage or rebuilt vehicle which was
damaged by flooding or a vehicle which was submerged at a level to or
above the dashboard of the vehicle and on which an amount of loss was
paid by the insurer;
4. “Unrecovered-theft vehicle” means a vehicle which has been stolen and
not yet recovered;
5. “Recovered-theft vehicle” means a vehicle, including a salvage or
rebuilt vehicle, which was recovered from a theft; and
6. “Junked vehicle” means any vehicle which is incapable of operation or
use on the highway, has no resale value except as a source of parts or
scrap and has an eighty percent (80%) loss in fair market value.
B. The owner of every vehicle in this state shall possess a certificate of
title as proof of ownership of such vehicle, except those vehicles
registered pursuant to Section 1120 of this title and trailers registered
pursuant to Section 1133 of this title, previously titled by anyone in
another state and engaged in interstate commerce, and except as provided
in subsection M of this section. [intentionally omitted]
There shall be seven types of certificates of title:
1. Original title for any motor vehicle which is not a remanufactured,
salvage, unrecovered-theft, rebuilt or junked vehicle;
2. Salvage title for any motor vehicle which is a salvage vehicle or is
specified as a salvage vehicle or the equivalent thereof on a certificate of
title from another state;
3. Rebuilt title for any motor vehicle which is a rebuilt vehicle;
4. Junked title for any motor vehicle which is a junked vehicle or is
specified as a junked vehicle or the equivalent thereof on a certificate of
title from another state;
5. Classic title for any motor vehicle, except a junked vehicle, which is
twenty-five (25) model years or older;
6. Remanufactured title for any vehicle which is a remanufactured vehicle;
and
7. Unrecovered-theft title for any motor vehicle which has been stolen and
not recovered.
C. through S. [intentionally omitted]
§ 1111. Salvage title--New title
A. As used in this section:
1. "Loss" means the cost, in dollars, to repair or replace a vehicle which
has been damaged by collision or other occurrence. The amount paid by
an insurer to a holder of the certificate of title for repair of a damaged
vehicle shall be prima facie evidence of the amount of the loss. The
amount paid by an insurer to a holder of the certificate of title for
replacement of a damaged vehicle less the resale value of the damaged
vehicle shall be prima facie evidence of the amount of the loss;
2. "Fair market value" means the value of a vehicle as listed in the current
National Auto Dealers Association guidebook or other similar guidebook
or the actual cash value, whichever is greater;
3. "Resale value" means the amount, in dollars, paid to the holder of a
certificate of title by a willing buyer for a vehicle damaged by collision or
other occurrence or recovered from theft;
4. "Total loss" means a loss which is equal to the fair market value of the
vehicle immediately prior to the damage to or theft of the vehicle; and
5. "Vehicle" means a vehicle, as defined in paragraph 29 of Section 1102
of this title manufactured within the last seven (7) model years.
B. Any insurance company that pays a total loss on a claim for any vehicle
including, but not limited to, a flood-damaged vehicle or recovered-theft
vehicle, any junk dealer who receives a motor vehicle which is to be used
for junk or for parts, or any other person permanently dismantling or
junking a vehicle shall receive the certificate of title from the current
holder of the certificate of title, shall detach the license plate from the
vehicle, and shall return the license plate and the certificate of title to the
Oklahoma Tax Commission or a motor license agent within thirty (30)
days from receipt of the certificate. The Tax Commission shall cancel the
certificate of title to the vehicle used for junk or parts and shall preserve
the vehicle identification numbers on the certificate of title in the
computer files for at least five (5) years. No certificate of title may be
reissued on a junked vehicle as defined in Section 1105 of this title, unless
reissued pursuant to paragraph 3 of subsection C of this section. The Tax
Commission shall transfer ownership of a stolen vehicle, not recovered
from theft at the time of transfer, by salvage or unrecovered-theft title to
the insurer. The Tax Commission shall transfer ownership of a vehicle
damaged by flooding or other occurrence to the insurer by an original title,
salvage title, or junked title, as may be appropriate, based upon an
estimate of the amount of loss submitted by the insurer. All license plates
surrendered to the Tax Commission shall be destroyed.
C.
1. If an insurance company pays a claim for a loss which is less than a
total loss but the cost of repairing the vehicle for safe operation on the
highway exceeds sixty percent (60%) of the fair market value of the
vehicle, or if any vehicle not insured is damaged to the extent that the cost
of repair for safe operation on the highway exceeds sixty percent (60%) of
the fair market value of the vehicle, any holder of the certificate of title for
the vehicle shall return the certificate of title to the Oklahoma Tax
Commission or a motor license agent within thirty (30) days from receipt
of payment for the loss.
2. Upon receipt of the certificate, the Tax Commission or motor license
agent shall issue a salvage title for the vehicle. The title for any vehicle
damaged by flooding shall be stamped with the words "Flood Damaged",
and for any such vehicle which was recovered from a theft, the salvage
title or rebuilt title shall be stamped with the words "Recovered Theft". A
licensed dealer subject to the provisions of the Automotive Dismantlers
and Parts Recycler Act, Section 591.1 et seq. of this title, shall not be
required to pay registration fees, excise taxes, back taxes, or penalties on a
vehicle as a prerequisite to obtaining a salvage title.
3. If the actual documented cost of repairing the vehicle for safe operation
on the highway does not exceed sixty percent (60%) of the fair market
value of the vehicle as defined in this section, the certificate of title shall
be reissued to the holder and the vehicle shall not be subject to inspection
as required under this section. The actual documented cost of repairing the
vehicle pursuant to this paragraph shall be certified by the insurance
company paying the loss.
D. through I. [intentionally omitted]
J. Any title for a motor vehicle issued pursuant to the laws of any other
state which reflects that such vehicle is a salvage vehicle, a rebuilt vehicle
or a junked vehicle or has any other brand or classification notation by that
state shall be retained on the new title issued by the Tax Commission
unless the actual documented cost of repairing the vehicle for safe
operation on the highway does not exceed sixty percent (60%) of the fair
market value of the vehicle as provided by this section.
K. When the insurance company pays a loss on a vehicle which is
registered at the time of mishap, accident, burning, or flooding, the
appropriate certificate of title shall be issued without the payment of
additional registration fees or excise taxes, upon the submission of a police
report or insurance adjuster's report and a declaration by the insurer that
the vehicle is held for sale to a dealer. If the owner of the vehicle or other insured retains ownership of the damaged vehicle, the Tax Commission
shall notify the owner or insured of the requirements of this section.
L. through N. [intentionally omitted]
O. Any owner of a salvage or junked vehicle shall submit the certificate of
title to the Oklahoma Tax Commission or motor license agent for issuance
of an appropriate title. [intentionally omitted] back to top
What documents must an insurer provide to Copart in order to sell a vehicle
on a Certificate of Title (aka “Clean 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 cover sheet with the date of loss and title type requested
by insurer.
Copart will submit these documents along with the appropriate fee to the
Oklahoma Tax Commission, Motor Vehicle Division for processing.
Thereafter, the Oklahoma Tax Commission, Motor Vehicle Division 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.
[Oklahoma Statutes Title 47, §§ 1105(C), 1107, 1111(C)(3)] back to top
What documents must an insurer provide to Copart in order to sell a vehicle
on a Salvage Certificate of Title (aka “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 cover sheet with the date of loss and title type requested
by insurer.
Copart will submit these documents along with the appropriate fee to the
Oklahoma Tax Commission, Motor Vehicle Division for processing.
Thereafter, the Oklahoma Tax Commission, Motor Vehicle Division shall issue a
Salvage 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 Salvage Certificate of Title to the purchaser.
[Oklahoma Statutes Title 47, §§ 591.8; 1105(C); 1107; 1111(C)(1) & (2)] back to top
What documents must an insurer provide to Copart in order to sell a vehicle
on a Junk 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 cover sheet with the date of loss and title type requested
by insurer.
Copart will submit these documents along with the appropriate fee to the
Oklahoma Tax Commission, Motor Vehicle Division for processing.
Thereafter, the Oklahoma Tax Commission, Motor Vehicle Division shall issue a
Junk 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 Junk Certificate of Title to the purchaser.
[Oklahoma Statutes, Title 47, §§ 591.8; 1105(A)(5), (B)(4), (H); 1111(B)] 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 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 with
last known mileage, a release of any liens, and a cover sheet with the date of loss
and title type requested by insurer.
After receipt of these documents, Copart will submit these documents along with
the appropriate fee to the Oklahoma Tax Commission, Motor Vehicle Division for
processing.
Thereafter, the Oklahoma Tax Commission, Motor Vehicle Division shall send an
Unrecovered Theft Title in the name of the insurer to the insurer for safekeeping.
If the vehicle is recovered, the title along with an ACV will be returned to Copart
by the insurer in order to obtain the appropriate title depending upon the year of
the vehicle and the damage to the vehicle.
Copart, acting upon a power of attorney for the insurer, will then sell the vehicle
at auction and reassign the insurer’s title to the purchaser. [Oklahoma Statutes
Title 47, §§ 1105(A)(4), (C)(2), (O); 1111(B), (C)(2)] back to top
What steps must an insurer take in Oklahoma to process an owner-retained
vehicle?
Pursuant to Oklahoma Statutes Title 47, § 1111 K.:
When the insurance company pays a loss on a vehicle which is registered
at the time of mishap, accident, burning, or flooding, the appropriate
certificate of title shall be issued without the payment of additional
registration fees or excise taxes, upon the submission of a police report or
insurance adjuster's report and a declaration by the insurer that the vehicle
is held for sale to a dealer. If the owner of the vehicle or other insured
retains ownership of the damaged vehicle, the Oklahoma Tax Commission
shall notify the owner or insured of the requirements of this section.
Pursuant to Oklahoma Statutes Title 47, § 1111 O.:
Any owner of a salvage or junked vehicle shall submit the certificate of
title to the Oklahoma Tax Commission or motor license agent for issuance
of an appropriate title.
What legal duties are imposed upon a lienholder following satisfaction of the
lien?
Pursuant to Oklahoma Statutes Title 47, § 1110(B):
1. A secured party shall, within seven (7) business days after
the satisfaction of the security interest, furnish directly or by mail a release
of a security interest to the Tax Commission and mail a copy thereof to the
last- known address of the debtor. If the security interest has been satisfied
by payment from a licensed used motor vehicle dealer to whom the motor
vehicle has been transferred, the secured party shall also, within seven (7)
business days after such satisfaction, mail an additional copy of the release
to the dealer. If the secured party fails to furnish the release as required,
the secured party shall be liable to the debtor for a penalty of One Hundred
Dollars ($100.00) and, in addition, any loss caused to the debtor by such
failure.
2. Upon release of a security interest the owner may obtain a new
certificate of title omitting reference to the security interest, by submitting
to the Tax Commission or to a motor license agent:
a. a release signed by the secured party, an application for new
certificate of title and the proper fees, or
b. by submitting to the Tax Commission or the motor license agent an
affidavit, supported by such documentation as the Tax Commission may
require, by the owner on a form prescribed by the Tax Commission stating
that the security interest has been satisfied and stating the reasons why a
release cannot be obtained, an application for a new certificate of title and
the proper fees. back to top
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