Oregon State Title Processing Procedures

1. 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?
2. What documents must an insurer provide to Copart in order to sell a vehicle on a Certificate of Title?
3. What documents must an insurer provide to Copart in order to sell a vehicle on a Salvage Title Certificate?
4. 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?
5. What steps must an insurer take in Oregon to process an owner-retained vehicle?
6. What legal duties are imposed upon a lienholder following satisfaction of the lien?

1. 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?
   
   Below are some of the laws addressing the proper titling of “totaled vehicles” in Oregon:
   
   Oregon Vehicle Code § 801.527. "Totaled vehicle"; "totaled." "Totaled vehicle" or "totaled" means:
   
   
   1. A vehicle that is declared a total loss by an insurer that is obligated to cover the loss or that the insurer takes possession of or title to,
   2. A vehicle that is stolen, if it is not recovered within 30 days of the date that it is stolen and if the loss is not covered by an insurer,
   3. A vehicle that has sustained damage that is not covered by an insurer and that is such that the estimated cost to repair the vehicle is equal to at least 80 percent of the retail market value of the vehicle prior to the damage. For purposes of this subsection, "retail market value" shall be as reflected in publications relied upon by financial institutions doing business in this state.
   
   Oregon Vehicle Code 801.454. "Salvage title certificate." "Salvage title certificate" means a document issued by this state under the provisions of ORS 803.140 as evidence of vehicle ownership. Unless the context clearly requires otherwise, a salvage title certificate is not a "certificate of title" for purposes of the Oregon Vehicle Code or the rules of the Department of Transportation.
   
   Oregon Vehicle Code § 819.014 - Insurer failure to follow procedures for totaled vehicle; penalty.
   
   
   1. An insurer commits the offense of insurer failure to follow procedures for a totaled vehicle if the insurer declares that the vehicle is a totaled vehicle and does not:
   (a) Obtain the certificate of title from the owner of the vehicle as a condition of settlement of the claim and surrender it to the Department of Transportation within 30 days of its receipt; or
   (b)If the insurer does not obtain the certificate from the registered owner, notify the department that the vehicle is a totaled vehicle within 30 days of declaring it to be so, or taking title to or possession of it, and notify the registered owner of the vehicle that the registered owner must surrender the certificate to the department and must notify any subsequent purchaser that the vehicle is a totaled vehicle.
   
   
   2. If the vehicle is one for which title was issued in a form other than a certificate, the insurer shall notify the department that the vehicle is a totaled vehicle and shall follow procedures adopted by the department by rule.
   
   
   3. The offense described in this section, insurer failure to follow procedures for a totaled vehicle, is a violation of the Insurance Code, as provided in ORS 746.308.
   
   Oregon Vehicle Code § 819.016. When salvage title required.
   
   
   1. Except as provided in subsection (2) of this section, when the provisions of ORS 819.010, 819.012 or 819.014 require a person to surrender to the Department of Transportation a certificate of title for a vehicle, or when a person buys a vehicle under the provisions of ORS 819.220, the person shall apply to the department for a salvage title for the vehicle. The application shall comply with the requirements of ORS 803.140.
   2. When the person is not required to surrender a certificate of title because title for the vehicle was issued in some other form, the person shall follow procedures adopted by the department by rule.
   3. Subsections (1) and (2) of this section do not apply if the person does not intend to rebuild or repair the vehicle, to transfer the vehicle or to use the frame or unibody of the vehicle for repairing or constructing another vehicle. [Also see Oregon Administrative Regulations § 735- 024-0130] back to top
      
      
2. 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 or accompanied by a power of attorney), an odometer disclosure statement, a release of any liens, and an ACV.
   
   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.[See Oregon Administrative Regulations § § 735-020-0010, 735- 020-0045]
   
   Note: A totaled brand will be issued, when an application for Oregon title is submitted with an out-of-state title in an insurer’s name, or as a buyer, assignee, or re-assignee. Oregon relies on ORS 801.527(1) in support of this position. back to top
   
   
3. What documents must an insurer provide to Copart in order to sell a vehicle on a Salvage Title Certificate?
   
   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, and an ACV.
   
   Copart will submit these documents along with an Application for Salvage Title and the appropriate fee to the DMV for processing.
   
   Thereafter, the DMV shall issue a Salvage Title Certificate 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 Title Certificate to the purchaser. [See Oregon Vehicle Code § § 801.527, 801.454, 803.140, 819.014, 819.016; Oregon Administrative Regulations § § 735-020-0010, 735-020-0045, 735-024-0110, 735-024-0130, 735-024-0140] back to top
   
   
4. 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 or accompanied by a power of attorney), and a release of any liens.
   
   After receipt of these documents, Copart will submit these documents along with an Application for Salvage Title and the appropriate fee to the DMV for processing.
   
   Thereafter, the DMV shall issue Salvage Title in the name of the insurer. Upon receipt, Copart will keep the Salvage Title for safekeeping unless otherwise requested.
   
   If the vehicle is recovered, the vehicle will be sold on the Salvage Title Certificate unless the vehicle has sustained very little damage. If the vehicle has sustained very little damage, the insurer may provide Copart with a “letter of reversal” requesting a Certificate of Title instead of a Salvage Title Certificate. back to top


5. What steps must an insurer take in Oregon to process an owner-retained vehicle?
   
   Pursuant to Oregon Vehicle Code § 819.012:
   
   
   1. A person other than an insurer commits the offense of failure to follow procedures for a totaled vehicle if the person:
      
      
      (a) Is the registered owner of a vehicle that is a totaled vehicle as defined in ORS 801.527 (1) and does not surrender the certificate of title for the vehicle either to the Department of Transportation or to the insurer within 30 days of the declaration or other relevant act by the insurer.
      (b) Is the registered owner of a vehicle that is a totaled vehicle as defined in ORS 801.527 (2) and does not notify the department of the status of the vehicle within 30 days of the day that the vehicle became a totaled vehicle.
      (c) Is the registered owner of a vehicle that is a totaled vehicle as defined in ORS 801.527 (3) and does not surrender the certificate of title for the vehicle to the department within 30 days of the date the vehicle became a totaled vehicle.
   
   Pursuant to Oregon Vehicle Code § 801.527:
   
   Totaled vehicle" or "totaled" means:
   
   
   1. A vehicle that is declared a total loss by an insurer that is obligated to cover the loss or that the insurer takes possession of or title to.
   2. A vehicle that is stolen, if it is not recovered within 30 days of the date that it is stolen and if the loss is not covered by an insurer.
   3. A vehicle that has sustained damage that is not covered by an insurer and that is such that the estimated cost to repair the vehicle is equal to at least 80 percent of the retail market value of the vehicle prior to the damage. For purposes of this subsection, "retail market value" shall be as reflected in publications relied upon by financial institutions doing business in this state. back to top
      
      
6. What legal duties are imposed upon a lienholder following satisfaction of the lien?
   
   Following satisfaction of lien, the lienholder must within 15 calendar days:
   
   (A) if in possession of the Certificate of Title, shall deliver the Certificate of Title and the release contained thereon to the security interest holder next named, if any, otherwise to the lessor or, if none, to the owner.
   (B) If not in the possession of the Certificate of Title, shall deliver a release to the person entitled thereto. Failure to comply with this section is a Class D traffic violation. [See Oregon Vehicle Code § 803.105] back to top
   
   
   OREGON DMV