Indiana State Title Processing Procedures

1. What form of title must an insurer obtain in connection with the sale of vehicle that has been acquired through the settlement of a claim?
2. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle on a Certificate of Title?
3. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle on a Certificate of Salvage Title branded “Salvage Title”?
4. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle on a Certificate of Salvage Title branded “Salvage Title-Flood Damaged”?
5. What documents must an insurer provide to CarBuyerUSA 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?
6. What steps must an insurer take in Indiana to process an owner-retained vehicle?
7. 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 vehicle that has been acquired through the settlement of a claim?
   
   Pursuant to the Indiana Code §§ 9-22-3-1(a) and 9-22-3-3:
   
   A certificate of salvage title is required for a motor vehicle manufactured within the last seven (7) model years, including the current model year, where the vehicle meets any of the following criteria:
   
   (1)An insurance company has determined that it is economically impractical to repair the wrecked or damaged motor vehicle, motorcycle, semitrailer, or recreational vehicle and has made an agreed settlement with the insured or claimant.
   
   (2) The motor vehicle is a flood damaged vehicle.
   
   The Indiana Bureau of Motor Vehicles shall, upon request, determine the fair market value of a wrecked or damaged motor vehicle, motorcycle, semitrailer, or recreational vehicle if the fair market value cannot be determined from the National Automobile Dealers Association (NADA) Official Used Car Guide, vehicle valuations determined by CCC Information Services, Inc. (CCC), or valuations determined by such other authorities as are approved by the bureau. [Indiana Code § 9-22-3-3(b)]
   
   A certificate of salvage title must contain the following information: (1) The same vehicle information as a certificate of title issued by the department. (2) The notation "SALVAGE TITLE" prominently recorded on the front and back of the title. (3) If the motor vehicle is a flood damaged vehicle, the notation "FLOOD DAMAGED" prominently recorded on the front and back of the title. [Indiana Code § 9-22-3-5]
   
   "Flood damaged vehicle" means a passenger motor vehicle that satisfies either of the following:
   
   (1) The vehicle has been acquired by an insurance company as part of a damage settlement due to water damage.
   (2) The vehicle has been submerged in water to the point that rising water has reached over the door sill, has entered the passenger or trunk compartment, and has exposed any electrical, computerized, or mechanical component to water.
   (b) The term does not include a passenger motor vehicle that an inspection conducted by an insurance adjuster or estimator, a motor vehicle repairer, or a motor vehicle dealer determines:
   (1) has no electrical, computerized, or mechanical components that were damaged by water; or
   (2) has one (1) or more electrical, computerized, or mechanical components that were damaged by water and all such damaged components have been repaired or replaced. [Indiana Code § 9-22-3-2.5]
   
   "Low speed vehicle" means a four (4) wheeled electrically powered motor vehicle: (1) with a maximum design speed of not more than thirty-five (35) miles per hour;
   (2) with operational and equipment specifications described in 49 CFR 571.500;
   (3) that is equipped with:
   (A) headlamps;
   (B) front and rear turn signal lamps, tail lamps, and stop lamps;
   (C) reflex reflectors;
   (D) exterior or interior mirrors;
   (E) brakes as specified in IC 9-19-3-1;
   (F) a windshield;
   (G) a vehicle identification number; and
   (H) a safety belt installed at each designated seating position; and
   (4) that has not been privately assembled as described in IC 9-17-4-1. [Indiana
   Code § 9-13-2-94.5]
   
   Form of certificates for Low Speed Vehicle must indicate that the motor vehicle is a low speed vehicle. [Indiana Code § 9-17-8-3]
   
   NOTE: Per Bureau of Motor Vehicles' memo dated 3/18/08, individuals with SSN issues will have a hold put on their vehicle titles. No transactions with these titles can occur without approval of the Title Division. back to top
   
   
2. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle on a Certificate of Title?
   
   The insurer shall provide CarBuyerUSA 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 cost of repair.
   
   If the insurer has a dealer number, CarBuyerUSA, acting under a power of attorney for the insurer, can sell the vehicle at auction and reassign the insurer’s Certificate of Title to the purchaser.
   
   However, if the insurer does not have a dealer number, CarBuyerUSA will submit the above documents along with an Application for Certificate of Title and the appropriate fee to the Bureau of Motor Vehicles for processing. Thereafter, the Bureau of Motor Vehicles shall issue a Certificate of Title in the name of the insurer. CarBuyerUSA, 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. [140 IAC §§ 6-1-10, 11 and 14] back to top
   
   
3. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle on a Certificate of Salvage Title branded “Salvage Title”?
   
   The insurer shall provide CarBuyerUSA 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 cost of repair.
   
   CarBuyerUSA will submit these documents along with an Application for Certificate of Title (Form 44049) and the appropriate fee to the Bureau of Motor Vehicles for processing.
   
   Thereafter, the Bureau of Motor Vehicles shall issue a Certificate of Salvage Title branded “Salvage Title” in the name of the insurer.
   
   CarBuyerUSA, acting under a power of attorney for the insurer, will then sell the vehicle at auction and reassign the insurer’s Certificate of Salvage Title branded “Salvage Title” to the purchaser. [Indiana Code §§ 9-22-3-4 and 11; 140 IAC 6-1-16] back to top
   
   
4. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle on a Certificate of Salvage Title branded “Salvage Title-Flood Damaged”?
   
   The insurer shall provide CarBuyerUSA 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 cost of repair.
   
   CarBuyerUSA will submit these documents along with an Application for Certificate of Title (Form 44049) and the appropriate fee to the Bureau of Motor Vehicles for processing.
   
   Thereafter, the Bureau of Motor Vehicles shall issue a Certificate of Salvage Title branded “Salvage Title-Flood Damaged” in the name of the insurer.
   
   CarBuyerUSA, acting under a power of attorney for the insurer, will then sell the vehicle at auction and reassign the insurer’s Certificate of Salvage Title branded “Salvage Title-Flood Damaged” to the purchaser. [Indiana Code §§ 9-22-3-2.5, 3, and 11; 140 IAC 6-1-16] back to top
   
   
5. What documents must an insurer provide to CarBuyerUSA 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 CarBuyerUSA 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, and a release of any liens.
   
   After receiving these documents, CarBuyerUSA will fill out an Application for Certificate of Title (Form 44049). This form along with the above documents and the appropriate fee will be forwarded to the Bureau of Motor Vehicles for processing. Thereafter, the Bureau of Motor Vehicles will issue a Certificate of Salvage Title in the name of the insurer and return it to CarBuyerUSA. Upon receipt, CarBuyerUSA will forward the Certificate of Salvage Title to the insurer for safekeeping.
   
   If that vehicle is recovered, the insurer will return the Certificate of Salvage Title to CarBuyerUSA. If the vehicle is recovered intact, the Salvage Title may be reversed to a clean title (with salvage history) if the insurer completes an affidavit and Affidavit of Restoration is completed by the police to prove vehicle was not rebuilt.
   
   CarBuyerUSA, 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. [Indiana Code §§ 9-22-3-3, 5, and 11(2); 140 IAC 6-1-16] back to top
   
   
6. What steps must an insurer take in Indiana to process an ownerretained vehicle?
   
   Pursuant to Indiana Code § 9-22-3-11(c):
   
   
   (a) This section applies to the following persons:
   
   (1) An insurance company that declares a wrecked or damaged motor vehicle, motorcycle, semitrailer, or recreational vehicle that meets at least one (1) of the criteria set forth in section 3 of this chapter and the ownership of which is not evidenced by a certificate of salvage title.
   (2) An insurance company that has made and paid an agreed settlement for the loss of a stolen motor vehicle, motorcycle, semitrailer, or recreational vehicle that:
   
   (A) has been recovered by the titled owner; and
   (B) meets at least one (1) of the criteria set forth in section 3 of this chapter.
   
   (b) (Intentionally omitted)
   (c) When the owner of a vehicle described in subsection (a) retains possession of the vehicle:
   
   (1) the person who possesses the certificate of title shall surrender the certificate of title to the insurance company described in subdivision (2);
   (2) the insurance company that completes an agreed settlement for the vehicle shall:
   (A) obtain the certificate of title; and
   (B) submit to the bureau:
   (i) the certificate of title;
   (ii) the appropriate fee; and
   (iii) a request for a certificate of salvage title on a form prescribed by the bureau; and
   (3) after the bureau has received the items set forth in subdivision (2)(B), the bureau shall issue a certificate of salvage title to the owner. back to top
   
7. What legal duties are imposed upon a lienholder following satisfaction of the lien?
   
   A person having possession of a certificate of title for a motor vehicle, semitrailer, or recreational vehicle because the person has a lien or an encumbrance on the motor vehicle, semitrailer, or recreational vehicle must deliver the certificate of title to the person who owns the motor vehicle, semitrailer, or recreational vehicle upon the satisfaction or discharge of the lien or encumbrance indicated upon the certificate of title. A person who violates this procedure commits a Class C infraction. [Indiana Code § 9-17-5-1] back to top
   
   
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