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?
Excerpts from the Code of Virginia relating to titling documents required
for vehicles acquired by insurers as a result of the claims process as set
forth below:
Code of Virginia § 46.2-1603:
(B) Every insurance company or its authorized agent shall apply to
the Department and obtain a salvage certificate [emphasis added]
for each late model vehicle acquired by the insurance company as
the result of the claims process if such vehicle is titled in the
Commonwealth and is a salvage vehicle.
(C) Every insurance company or its authorized agent shall apply to
the Department and obtain a certificate of title [emphasis added] for
each stolen vehicle acquired by the insurance company as the result
of the claims process if such vehicle is titled in the Commonwealth
and has not been recovered at the time of application to the
Department. For each recovered stolen vehicle, acquired as a result
of the claims process, whose estimated cost of repair exceeds
seventy-five percent of its actual cash value, the insurance company
or its authorized agent shall apply to the Department and obtain a
salvage certificate. The application shall be accompanied by the
vehicle's title certificate and shall contain a description of the
damage to the salvage vehicle and an itemized estimate of the cost of
repairs up to the point where a nonrepairable certificate would be
issued. Application for the certificate of title shall be made within
fifteen days after payment has been made to the owner, lienholder,
or both. Application for the salvage certificate shall be made within
fifteen days after the stolen vehicle is recovered.
Code of Virginia § 46.2-1603.2:
(B) Every insurance company or its authorized agent shall apply to
the Department and obtain a nonrepairable certificate [emphasis
added] for each vehicle acquired by the insurance company as a
result of the claims process if such vehicle is titled in the
Commonwealth and is (i) a late model nonrepairable vehicle or (ii) a
stolen vehicle that has been recovered and determined to be a
nonrepairable vehicle. The application shall be accompanied by the
vehicle's title certificate or salvage certificate and shall contain a
description of the damage to the nonrepairable vehicle. Application
for the nonrepairable certificate shall be made within fifteen days
after payment has been made to the owner, lienholder, or both.
Code of Virginia § 46.2-1602.1:
Every insurance company which acquires, as a result of the claims
process, any late model vehicle titled in the Commonwealth or any
recovered stolen vehicle whose estimated cost of repair exceeds
seventy-five percent of its actual cash value shall apply to and obtain
from the Department either (i) a salvage certificate or certificate of
title as provided in § 46.2-1603 or (ii) a nonrepairable certificate as
provided in § 46.2-1603.2 for each such vehicle. An insurance
company may apply to and obtain from the Department either a
salvage certificate as provided in § 46.2-1603 or a nonrepairable
certificate as provided in § 46.2-1603.2 for any other vehicle which
is determined to be either a salvage vehicle or a nonrepairable
vehicle.
Code of Virginia § 46.2-1600 provides the following definitions
applicable to the above legal citations:
"Late model vehicle" means the current-year model of a vehicle and
the six preceding model years, or any vehicle whose actual cash
value is determined to have been at least $7,500 prior to being
damaged.
"Nonrepairable certificate" means a document of ownership issued
by the Department for any nonrepairable vehicle upon surrender or
cancellation of the vehicle's title and registration or salvage
certificate.
"Nonrepairable vehicle" means (i) any late model vehicle that has
been damaged and whose estimated cost of repair exceeds ninety
percent of its actual cash value prior to damage, or (ii) any vehicle
which has been determined to be nonrepairable by its insurer or
owner, and for which a nonrepairable certificate has been issued or
applied for, or (iii) any other vehicle which has been damaged, is
inoperable, and has no value except for use as parts and scrap metal
"Salvage certificate" means a document of ownership issued by the
Department for any salvage vehicle upon surrender or cancellation
of the vehicle's title and registration.
"Salvage vehicle" means (i) any late model vehicle which has been
(a) acquired by an insurance company as a part of the claims process
other than a stolen vehicle or (b) damaged as a result of collision,
fire, flood, accident, trespass, or any other occurrence to such an
extent that its estimated cost of repair, excluding charges for towing,
storage, and temporary replacement/rental vehicle or payment for
diminished value compensation, would exceed its actual cash value
less its current salvage value; (ii) any recovered stolen vehicle
acquired by an insurance company as a part of the claims process,
whose estimated cost of repair exceeds seventy-five percent of its
actual cash value; or (iii) any other vehicle which is determined to be
a salvage vehicle by its owner or an insurance company by applying
for a salvage certificate for the vehicle, provided that such vehicle is
not a nonrepairable 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 itemized repair
estimate.
Copart will submit these documents along with the Certificate of Title with
the Application for New Certificate of Title and Registration filled out, and
the appropriate fee to the Department of Motor Vehicles for processing.
Thereafter, Department 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. [See Virginia Code, §§ 46.2-621, 46.2-1600] back to top
What documents must an insurer provide to Copart in order to sell a
vehicle on a Certificate of Title indicating “Salvage Vehicle”?
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 itemized repair
estimate.
Copart will submit these documents along with an Application for Salvage
Certificate and the appropriate fee to the Department of Motor Vehicles for
processing.
Thereafter, the Department of Motor Vehicles shall issue a Certificate of
Title indicating “Salvage Vehicle” with the appropriate branding, if
necessary, 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 indicating
“Salvage Vehicle” to the purchaser. [See Virginia Code, §§ 46.2-1600,
46.2-1603] back to top
What documents must an insurer provide to Copart in order to sell a
vehicle on a Certificate of Title indicating “Salvage Vehicle” and
“Branded if Rebuilt”?
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 itemized repair
estimate.
Copart will submit these documents along with an Application for Salvage
Certificate and the appropriate fee to the Department of Motor Vehicles for
processing.
Thereafter, the Department of Motor Vehicles shall issue a Certificate of
Title indicating “Salvage Vehicle” and “Branded if Rebuilt” with the
appropriate branding, if necessary, 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 indicating
“Salvage Vehicle” and “Branded if Rebuilt” to the purchaser. [See Virginia
Code, §§ 46.2-1600, 46.2-1603] back to top
What documents must an insurer provide to Copart in order to sell a
vehicle on Nonrepairable 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
Nonrepairable Certificate and the appropriate fee to the Department of
Motor Vehicles for processing.
Thereafter, the Department of Motor Vehicles shall issue a Nonrepairable
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 Nonrepairable Certificate to the
purchaser. [See Virginia Code, § § 46.2-1600, 46.2-1603.2] 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 recovered, 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 or accompanied by a power
of attorney), an odometer disclosure statement, a release of any liens, an
ACV and a repair estimate or a letter from insurance company stating there
is no damage.
After receipt of these documents, Copart will submit these documents along
with an Application for Certification of Recovered Stolen Vehicle (LSD03)
and the appropriate fee to the Department of Motor Vehicles for processing
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. [See
Virginia Code, § § 46.2-1600, 46.2-1602.1, 46.2-1603, 46.2-1603.2] back to top
What steps must an insurer take in Virginia to process an ownerretained vehicle?
Pursuant to Virginia Code § 46.2-1603:
A. The owner of any vehicle titled in the Commonwealth may declare
such vehicle to be a salvage vehicle and apply to the Department and obtain
a salvage certificate for that vehicle.
B. Intentionally omitted
C. Intentionally omitted
D. Every insurance company or its authorized agent shall notify the
Department of each late model vehicle titled in the Commonwealth on
which a claim for damage to the vehicle has been paid by the insurance
company if (i) the estimated cost of repair exceeds seventy-five percent of
actual cash value of the vehicle and (ii) the vehicle is to be retained by its
owner. No such notification shall be required for a vehicle when a
supplemental claim has been paid for the cost of repairs to the engine,
transmission, or drive axle assembly if such components are replaced by
components of like kind and quality.
E. Intentionally omitted
F. The fee for issuance of the salvage certificate shall be ten dollars. If
a salvage vehicle is sold after a salvage certificate has been issued, the
owner of the salvage vehicle shall make proper assignment to the
purchaser.
G. The Department, upon receipt of an application for a salvage
certificate for a vehicle titled in the Commonwealth, or upon receipt of
notification from an insurance company or its authorized agent as provided
in subsection D of this section, shall cause the title of such vehicle to be
cancelled and the appropriate certificate issued to the vehicle's owner. back to top
What legal duties are imposed upon a lienholder following satisfaction
of the lien?
Pursuant to Virginia Code, § 46.2-643:
It shall constitute a Class 3 misdemeanor for a secured party who holds a
certificate of title as provided in this title to refuse or fail to mark satisfied
and surrender it to the person legally entitled thereto within ten days after
his security interest is satisfied. back to top
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