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?
Portions of relevant Utah Code addressing titling requirements for salvage
vehicles are set forth below:
Utah Code § 41-1a-1001:
(5) (a) "Salvage certificate" means a certificate of ownership issued
for a salvage vehicle before a new certificate of title is issued for
the vehicle.
(b) A salvage certificate is not valid for registration purposes.
(6) "Salvage vehicle" means any vehicle:
(a) damaged by collision, flood, or other occurrence to the extent
that the cost of repairing the vehicle for safe operation exceeds its
fair market value; or
(b) that has been declared a salvage vehicle by an insurer or other
state or jurisdiction, but is not precluded from further registration
and titling.
Utah Code § 41-1a-1005:
(1) (a) (i) If an insurance company declares a vehicle a salvage
vehicle and takes possession of the vehicle for disposal, or an
insurance company pays off the owner of a vehicle that is stolen
and not recovered, the insurance company shall within ten days
from the settlement of the loss surrender to the division the
outstanding certificate of title, properly endorsed, or other evidence
of ownership acceptable to the division. (ii) The division shall then
issue a salvage certificate in the insurance company's name.
(b) (i) through (iv) [omitted]
(c) (i) through (ii) [omitted]
(d) (i) through (ii) [omitted]
(2) Any person, insurance company, or dealer licensed under Title
41, Chapter 3, Part 2, Licensing, who fails to obtain a salvage
certificate as required in this section or who sells a salvage vehicle
without first obtaining a salvage certificate is guilty of a class B
misdemeanor.
(3) This section does not apply to a vehicle:
(a) that has an undamaged, wholesale value of $2,000 or less; or
(b) if a salvage certificate has been issued by another state or
jurisdiction for the salvage vehicle.
(4) Upon sale or disposal of a salvage vehicle, the seller shall
deliver to the purchaser the properly endorsed salvage certificate
within 48 hours as required in Section 41-1a-1310, or if the selleris a dealer licensed under Title 41, Chapter 3, Part 2, Licensing, the
dealer shall comply with Section 41-3-301.
(5) Except as provided in Subsection (1), this chapter does not
apply to a motor vehicle that has been stolen or taken without the
consent of the owner until the motor vehicle has been recovered,
and then it applies only if the motor vehicle is a salvage vehicle. 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 or accompanied by a power of attorney), an odometer disclosure
statement, a release of any liens, an ACV, and a cost of repair.
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
Utah Code § 41-1a-702] back to top
What documents must an insurer provide to Copart in order to sell a vehicle
on a Salvage 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, an ACV, and a cost of repair.
Copart will submit these documents along with an Application for Utah Title
marked Salvage Title (Form TC-656, 7-01) and the appropriate fee to the Utah
State Tax Commission - Motor Vehicle Division for processing.
Thereafter, the Utah State Tax Commission – Motor Vehicle Division shall send
Copart the 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.
[See Utah Code §§ 41-1a-1001, 1004, 1005] 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 or accompanied by a power of
attorney), an odometer disclosure statement with last known mileage, and a
release of any liens.
After receipt of these documents, Copart will submit these documents along with
Application for Utah Title marked Salvage Title (Form TC-656, 7-01) and the
appropriate fee to the Utah State Tax Commission – Motor Vehicle Division for
processing.
Thereafter, the Utah State Tax Commission – Motor Vehicle Division shall send
Copart the Salvage Certificate of Title in the name of the insurer. Upon receipt,
Copart will forward the Salvage Certificate of Title to the insurer for safekeeping.
If the vehicle is recovered, the Salvage Certificate of Title along with an ACV,
cost of repair, and a Combined Affidavit stating vehicle was stolen and recovered
will be returned to Copart by the insurer in order to obtain the appropriate title
depending upon 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. [Utah Code §§ 41-1a-
1001, 1004, 1401] back to top
What steps must an insurer take in Utah to process an owner-retained
vehicle?
Pursuant to Utah Code § 41-1a-1005:
(b) (i) If the owner of a salvage vehicle retains possession of the vehicle,
the insurance company shall within ten days from the settlement of the loss notify
the division of the retention on a form prescribed by the division.
(ii) The insurance company shall notify the owner of the vehicle of his
responsibility to comply with this section.
(iii) The owner shall within ten days from the settlement of the loss
surrender to the division the properly endorsed certificate of title or other
evidence of ownership acceptable to the division.
(iv) The division shall then issue a salvage certificate in the owner's name. back to top
What legal duties are imposed upon a lienholder following satisfaction of the
lien?
Pursuant to Utah Code § 41-1a-608(1):
(1) A person holding a lien or encumbrance as shown upon a certificate of title
upon a vehicle or vessel may release the lien or encumbrance or assign his interest
to the owner without affecting the registration of the vehicle or vessel.
(2) The division shall issue a new certificate of title without a lien previously
recorded upon receiving:
(a) a certificate of title: (i) upon which a lienholder has released or assigned his interest to the owner; or
(ii) not so endorsed but accompanied by a legal release from a lienholder of his interest in or to a vehicle, vessel, or outboard motor;
(b) an application properly completed; and
(c) the proper fee. back to top
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