Kansas 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 CarBuyerUSA in order to sell a vehicle on a Salvage Certificate of Title?
3. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle on Nonrepairable Vehicle Certificate?
4. 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?
5. What steps must an insurer take in Kansas 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? The following excerpts from Kansas Statutes address the proper titling of vehicles acquired by insurers in the state of Kansas:
   
   Pursuant to Kansas Statutes § 8-199:
   
   (a) Except as provided in subsection (b), it shall be unlawful for any person to sell or transfer the ownership of any nonhighway vehicle or salvage vehicle, unless such person shall give to the purchaser thereof an assigned nonhighway certificate of title or salvage title.
   
   (b) The sale or transfer of ownership of a nonhighway vehicle or salvage vehicle shall include the acquisition of any such vehicle by an insurer, as defined by K.S.A. 40-3103, and amendments thereto, from any person upon payment of consideration therefor in satisfaction of such insurer's obligation under a policy of motor vehicle insurance but the transferor of a vehicle for which a title has been issued under K.S.A. 8-135, and amendments thereto, shall not be required to obtain a nonhighway certificate of title or salvage title for such vehicle and may assign to the insurer the certificate of title issued pursuant to K.S.A. 8-135, and amendments thereto. It shall be unlawful for any insurer to sell or attempt to sell any nonhighway vehicle or salvage vehicle, through power of attorney or otherwise, unless such insurer shall obtain a nonhighway certificate of title or salvage title issued in the name of the insurer.
   
   Pursuant to Kansas Statutes § 8-197(b):
   
   (C)(2)“Salvage vehicle” means:
   
   (A) Any motor vehicle, other than a late model vehicle, which is of a type required to be registered in this state, but which cannot be registered because it has been wrecked or damaged to the extent that: The equipment required by state statute on any such vehicle used on the highways of this state is not present or is not in good condition or proper adjustment, as prescribed by state statute or any rules and regulations adopted pursuant thereto, or such vehicle is in an inoperable condition or a condition that would render the operation thereof on the highways of this state a hazard to the public safety; and in either event, such vehicle would require substantial repairs to rebuild or restore such vehicle to a condition which will permit the registration thereof;
   
   (B) a late model vehicle which is of a type required to be registered in this state and which has been wrecked or damaged to the extent that the total cost of repair is 75% or more of the fair market value of the motor vehicle immediately preceding the time it was wrecked or damaged and such condition was not merely exterior cosmetic damage to such vehicle as a result of windstorm or hail; or
   
   (C) a motor vehicle, which is of a type required to be registered in this state that the insurer determines is a total loss and for which the insurer takes title;
   
   (3) “salvage title” means a certificate of title issued by the division designating a motor vehicle a salvage vehicle;
   
   (4) 'rebuilt salvage vehicle' means any motor vehicle previously issued a salvage title;
   
   (5) 'rebuilt salvage title' means a certificate of title issued by the division for a vehicle previously designated a salvage vehicle which is now designated a rebuilt salvage vehicle . ;
   
   (6) 'late model vehicle' means any motor vehicle which has a manufacturer's model year designation of or later than the year in which the vehicle was wrecked or damaged or any of the six preceding years;
   
   (7) 'fair market value' means the retail value of a motor vehicle as:
   
   (A) Set forth in a current edition of any nationally recognized compilation, including an automated database of retail value; or
   
   (B) determined pursuant to a market survey of comparable vehicles with regard to condition and equipment;
   
   (8) 'cost of repairs' means the estimated or actual retail cost of parts needed to repair a vehicle plus the cost of labor computed by using the hourly labor rate and time allocations for automobile repairs that are customary and reasonable. Retail costs of parts and labor rates may be based upon collision estimating manuals or electronic computer estimating systems customarily used in the automobile industry. The total cost of repairs to rebuild or reconstruct the vehicle shall not include the cost of repairing, replacing or reinstalling tires, sound systems, or any sales tax on parts or materials to rebuild or reconstruct the vehicle.
   
   Pursuant to Kansas Statutes § 8-198(d)(2):
   
   Every insurance company, which pursuant to a damage settlement, acquires ownership of a vehicle that has incurred damage requiring the vehicle to be designated a salvage vehicle, shall apply for a salvage title within 30 days after the title is assigned and delivered by the owner to the insurance company, with all liens released.
   
   Pursuant to Kansas Statutes § 8-135c(b):
   
   (b)(1) “Nonrepairable vehicle” means any motor vehicle which: (A) Has been damaged, destroyed, wrecked, burned or submerged in water to the extent that such motor vehicle is incapable of safe operation for use on roads or highways and has no resale value except as a source of parts or scrap only; or (B) the owner irreversibly designates as a source of parts or scrap;
   
   (2) “Nonrepairable vehicle certificate” means a motor vehicle ownership document issued by the division designating that vehicle a nonrepairable vehicle.
   
   (c)(1) Except as otherwise provided by this section, the owner of a vehicle that meets the definition of a nonrepairable vehicle shall apply to the division for a nonrepairable vehicle certificate before the ownership of the motor vehicle is transferred. In no event shall such application be made more than 30 days after the vehicle is determined to be a nonrepairable vehicle.
   
   (2) Every insurance company, which pursuant to a damage settlement, acquires ownership of a vehicle that has incurred damage requiring the vehicle to be designated a nonrepairable vehicle, shall apply to the division for a nonrepairable vehicle certificate within 30 days after the title is assigned and delivered by the owner to the insurance company, with all liens released. back to top
   
   
2. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle on a Salvage 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 or accompanied by a power of attorney), an odometer disclosure statement, a release of any liens, and an ACV.
   
   CarBuyerUSA will submit these documents along with a Title and Registration Application, a Salvage, Nonhighway or Non-Repairable Vehicle Affidavit and the appropriate fee to the Division of Vehicles for processing. Thereafter, the Division of Vehicles shall issue a Salvage 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 Salvage Certificate of Title to the purchaser. [See Kansas Statutes §§ 8-135, 8-197, 8-198] back to top
   
   
3. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle on Nonrepairable Vehicle Certificate?
    
   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 or accompanied by a power of attorney), an odometer disclosure statement, a release of any liens, and an ACV.
   
   CarBuyerUSA will submit these documents along with a Title and Registration Application, a Salvage, Nonhighway or Non-Repairable Vehicle Affidavit, and the appropriate fee to the Division of Vehicles for processing. Thereafter, the Division of Vehicles shall issue a Nonrepairable Vehicle Certificate 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 Nonrepairable Vehicle Certificate to the purchaser. [See Kansas Statutes § 8-135c] back to top
   
   
4. 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 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, CarBuyerUSA will submit these documents along with a Title and Registration Application and a Salvage, Nonhighway or Non-Repairable Vehicle Affidavit and the appropriate fee to the Division of Vehicles for processing.
   
   Thereafter, the Division of Vehicles shall issue Salvage Certificate of Title in the name of the insurer. Upon receipt, CarBuyerUSA 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 and a Police Report will be returned to CarBuyerUSA by the insurer.
   
   If the vehicle is considered a salvage vehicle, CarBuyerUSA, acting upon 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.
   
   However, if the vehicle is considered a Nonrepairable, CarBuyerUSA, acting upon a power of attorney for the insurer, will apply for a Nonrepairable Vehicle Certificate in the name of the insurer. Thereafter, CarBuyerUSA, acting upon a power of attorney for the insurer, will then sell the vehicle at auction and reassign the insurer’s Nonrepairable Vehicle Certificate to the purchaser. back to top
   
   
5. What steps must an insurer take in Kansas to process an ownerretained vehicle?
   
   Pursuant to Kansas Statutes § 8-135(c)(3):
   
   Every insurance company which makes a damage settlement for a vehicle that has incurred damage requiring such vehicle to be designated a nonrepairable vehicle, but does not acquire ownership of the vehicle, shall notify the vehicle owner of the owner's obligation to apply to the department for a nonrepairable vehicle certificate for the motor vehicle, and shall notify the division of this fact in accordance with procedures established by the division. The vehicle owner shall apply to the division for a nonrepairable vehicle certificate within 30 days after being notified by the insurance company.
   
   Pursuant to Kansas Statutes § 8-199(a):
   
   (I)t shall be unlawful for any person to sell or transfer the ownership of any nonhighway vehicle or salvage vehicle, unless such person shall give to the purchaser thereof an assigned nonhighway certificate of title or salvage title.
   
   Pursuant to Kansas Statutes § 8-198(d):
   
   (3) Every insurance company which makes a damage settlement for a vehicle that has incurred damage requiring such vehicle to be designated a salvage vehicle, but does not acquire ownership of the vehicle, shall notify the vehicle owner of the owner's obligation to apply for a salvage title for the motor vehicle, and shall notify the division of this fact in accordance with procedures established by the division. The vehicle owner shall apply for a salvage title within 30 days after being notified by the insurance company.
   
   (4) The lessee of any vehicle which incurs damage requiring the vehicle to be designated a salvage vehicle shall notify the lessor of this fact within 30 days of the determination that the vehicle is a salvage vehicle.
   
   (5) The lessor of any motor vehicle which has incurred damage requiring the vehicle to be titled as a salvage vehicle, shall apply for a salvage title within 30 days after being notified of this fact by the lessee.
   
   (6) Every person acquiring ownership of a motor vehicle that meets the definition of a salvage vehicle, for which a salvage title has not been issued, shall apply for the required document prior to any further transfer of such vehicle, but in no event, more than 30 days after ownership is acquired. back to top
   
   
6. What legal duties are imposed upon a lienholder following satisfaction of the lien?
   
   When the indebtedness to a lienholder, whose name is shown upon a title, is paid in full, such lienholder within 10 days after written demand by restricted mail, shall furnish to the holder of the title a release of lien or execute such a release in the space provided on the title. For failure to comply with such a demand the lienholder shall be liable to the holder of the title for $100 and also shall be liable for any loss caused to the holder by such failure. When the indebtedness to a lienholder, whose name is shown upon a title, is collected in full, such lienholder, within 30 days, shall furnish notice to the holder of title that such indebtedness has been paid in full and that such title may be presented to the lienholder at any time for release of lien. [See Kansas Statutes § 8-135(6)] back to top
   
   
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