Pennsylvania 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 Salvage?
3. 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?
4. What steps must an insurer take in Pennsylvania to process an ownerretained vehicle?
5. 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?
   
   An owner who transfers a vehicle to be destroyed or dismantled, salvaged or recycled shall assign the certificate of title to the person to whom the vehicle is transferred. [The] transferee shall immediately present the assigned certificate of title to the department or an authorized agent of the department with an application for a certificate of salvage upon a form furnished and prescribed by the department. An insurer to which title to a vehicle is assigned upon payment to the insured or claimant of the replacement value of a vehicle shall be regarded as a transferee under this subsection. [Pennsylvania Statutes, Title 75 - § 1161(a), (b) & (c)] back to top



2. What documents must an insurer provide to Copart in order to sell a vehicle on a Certificate of Salvage?
   
   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, and a release of any liens.
   
   Copart will submit these documents along with an Application for Certificate of Salvage (MV-6) and the appropriate fee to the Bureau of Motor Vehicles for processing.
   
   Thereafter, the Bureau of Motor Vehicles shall issue a Certificate of Salvage 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 to the purchaser. [Pennsylvania Statutes, Title 75 – § 1161(a); (b) & (c)] back to top
   
   
3. 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), an odometer disclosure statement, and a release of any liens.
   
   After receiving these documents, Copart will fill out an Insurance Company Application for Certificate of Salvage for a Stolen Vehicle (MV-6SV). This form along with the above documents and the appropriate fee will be forwarded to the Bureau of Motor Vehicles for processing.
   
   Thereafter, the Department of Motor Vehicles will issue a Certificate of Salvage in the name of the insurer and return it to Copart. Upon receipt, Copart will forward the Certificate of Salvage to the insurer for safekeeping.
   
   If that vehicle is recovered, the insurer will return the Certificate of Salvage to Copart. (Note: If the vehicle is recovered intact or not, it remains on Certificate of Salvage.)
   
   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 to the purchaser. [Pennsylvania Statutes, Title 75 - § 1164] back to top


4. What steps must an insurer take in Pennsylvania to process an ownerretained vehicle?
   
   Pursuant to Pennsylvania Statutes, Title 75 - § 1161(b):
   
   If an owner retains possession of a vehicle which is damaged to the extent that it qualifies for vehicle replacement payment, the owner shall apply for a certificate of salvage immediately. In this case, an insurer shall not pay vehicle replacement value until the owner produces evidence to the insurer that the certificate of salvage has been issued. back to top



5. What legal duties are imposed upon a lienholder following satisfaction of the lien?
   
   Pursuant to Pennsylvania Statutes, Title 75 - § 1135:
   
   
   1. Absence of subsequent liens.--Where there are no subsequent liens upon a vehicle, the following rules apply upon the satisfaction of a security interest in the vehicle:
      
      
   1. The outstanding certificate of title shall be mailed or delivered immediately to the owner of the vehicle with proper evidence of satisfaction and release or the lienholder may apply for corrected title to be issued in the name of the owner.
   2. The owner may mail or deliver the certificate of title with proper evidence of satisfaction of the security interest to the department which shall issue a corrected certificate of title without a statement of liens or encumbrances. The corrected certificate of title may also be issued when the outstanding certificate of title cannot be returned and proper evidence is produced that all recorded security interests have been satisfied.
      
      
   2. Prior or subsequent liens.--Where there are subsequent liens upon a vehicle or the lien to be released is not a first lien, the following rules apply upon the satisfaction of a security interest in the vehicle:
      
      
   1. If the lienholder whose security interest is satisfied has possession of the certificate of title, the lienholder shall mail or deliver the certificate of title, immediately upon satisfaction, to the department with proper evidence of satisfaction and release of the security interest. A corrected certificate of title, containing a statement of the remaining security interests on record, shall be mailed by the department to the person holding the next lien upon the vehicle.
   2. Upon the satisfaction of a security interest in a vehicle for which the certificate of title is in the possession of a prior lienholder, the lienholder whose security interest is satisfied shall, immediately upon satisfaction, mail or deliver to the owner proper evidence of the satisfaction and release of the security interest. Upon request of the owner and receipt of the release, the lienholder in possession of the certificate of title shall mail or deliver the certificate of title together with the release to the department. The department shall issue a corrected certificate of title which shall be mailed to the first lienholder.
      
      
   3. Penalties.--
      
      
   1. Any person failing to deliver upon demand a satisfied certificate of title as required by subsection (a)(1) is guilty of a summary offense and shall, upon conviction, for a first offense be sentenced to pay a fine of $50 and for a subsequent offense be sentenced to pay a fine of $100.
   2. Any person failing to return to the department a certificate of title where there are other liens, for correction and delivery, as required by subsection (b) is guilty of a summary offense and shall, upon conviction, be sentenced to pay a fine of $100.
   3. No person shall be deemed guilty of a violation of this section if the person delivers the certificate of title to the department within five days of the satisfaction of the lien. back to top
      
      
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