Mississippi 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 Certificate of Title?
3. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle on a Certificate of Title branded “SALVAGED” (“Salvage Certificate of Title”)?
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 Mississippi 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?
   
   Pursuant to Mississippi Code § 63-21-33:
   
   An insurance company which obtains title to a motor vehicle as a result of paying a total loss claim resulting from collision, fire, flood or other cause shall obtain a salvage certificate of title in its name for such vehicle from the State Tax Commission. The provisions of this subsection shall not apply to vehicles ten (10) years old or older with a value of One Thousand Five Hundred Dollars ($1,500.00) or less, or to vehicles with damage which requires the replacement of five (5) or fewer minor components, which such insurer may dispose of by endorsing change in ownership on the certificate of title using space reserved for reassignment of title by licensed dealer without obtaining a salvage certificate of title.
   
   Pursuant to MS ADV 48 070 001, Title Law Regulation 51:
   
   A. Definitions:
   
   
   (1) The term "salvage vehicle" shall mean a motor vehicle which an insurance company obtains from the owner as a result of paying a total loss claim resulting from collision fire, flood, accident, hail damage, trespass, unrecovered theft, or other occurrence. The provisions of this section shall not apply to a motor vehicle which is ten (10) years old or older with a value of one thousand five hundred dollars (1,500) or less, or to a motor vehicle with damage which will require the replacement of five (5) or fewer minor component parts,
   (2) [intentionally omitted]
   (3) Salvage Certificate of Title shall mean a document issued by the Tax Commission for a salvage vehicle as defined in A.(1)
   (4) [intentionally omitted]
   (5) The term component parts as pertaining to passenger vehicle as set herein shall mean:
   
   a. Major Component parts:
   1. cowl or firewall;
   2. front-end assembly:
   3. rear clip including roof panel
   4. roof panel when installed separately
   5. frame, or any portion thereof, or in the case of a unitird body, the supporting structure which serves as the frame,
   6. any combination of five (5) minor component parts:
   7. motor or engine (Replace)
   b. Minor Component parts:
   1. each door;
   2. hood:
   3. each fender or quarter panel
   4. deck lid or hatchback
   5. each bumper
   6. both T-tops;
   7. transmission/transaxle (Replace)
   c. As used in this section:
   1. front-end assembly means all of the following hood, fenders, bumper, radiator supports, and supporting members for such items. In the case of a unitized body, the front-end assembly includes frame support members
   2. rear-clip means all of the following roof, quarter panels, trunk lid, floor Pan and the support members of such item.
   
   (6) Truck. Truck Type or Bus Type Vehicles A component Dart shown In section (5) a. not listed in this section which is common to truck, truck type vehicle should be listed from (5) a. if repaired or replaced.
   
   a. Major Component parts
   
   1. Frame or any portion thereof or, in the case of a unitized body, the supporting structure which serves as the frame.
   2. Cab
   3. Cargo compartment floor panel or passenger compartment floor pan.
   4. Transmission or trans-axle (Replace)
   5. Motor or Engine (replace)
   6. Roof Panel
   b. Minor Component parts:
   
   1. each door:
   2. hood:
   3. each fender or quarter panel;
   4. each bumper
   5. tailgate
   (7) Motorcycle Component parts
   1. Engine or motor
   2. Transmission or transaxle
   3. Frame
   4. Front Fork Crankcase
   B. Insurance Company to apply for Certificate of Title (1) An insurance company which as a result of paying a total loss claim becomes the owner of a motor vehicle and obtains the insured's certificate of title, shall within seventy-two (72) hours after obtaining said title apply to the Tax Commission for a new Certificate of Title, surrendering with its application the current certificate of title and odometer disclosure made in the title or in such form as required, including documentation to show if the title applied for is for a salvage vehicle, and include a signed statement on original company letterhead which states ( ) collision damage; ( ) hail damage ( ) flood damage; ( ) recovered or ( ) unrecovered theft. If the vehicle sustained damage from collision or other occurrence or is recovered theft, will it require replacement of 6 minor component parts? ( ) yes; ( ) no?. The insurance company shall staple this statement to the Certificate of Title, and make notation on the face of the Certificate of Title. Such application shall be made by the insurance company in the manner and in such fore prescribed and provided by the Tax Commission. The provisions of this paragraph shall not apply to a vehicle which is ten (10) years old or older with a value prior to the loss of one thousand five hundred dollars ($1,500), or less or which will require the replacement of five (5) or fewer minor component parts in the reconstruction process. (2) If ownership of a salvage vehicle has not been acquired by an insurer, the owner must surrender the certificate of title for such vehicle to a designated agent of the State Tax Commission prior to any sale or disposition of such vehicle and not later than thirty (50) days from the date that the vehicle becomes a salvage vehicle. C. Insurance Company may re-assign certificate of title in certain cases An insurance company which is authorized to underwrite Policies in this state and others as authorized by the Tax Commission who acquire ownership of a motor vehicle in this state which it determines not to require application for a Certificate of Title as provided in paragraph B.(1) above, may transfer ownership of said vehicle by executing the space contained on the reverse of the certificate of title reserved for First Re-assignment by Licensed Dealer, naming therein the purchaser, who may be the insured, a rebuilder or dismantler. Insurer or others shall attach a signed statement or if the owner is a company, on company letterhead which states ( ) collision damage; ( ) hail damage; ( ) flood damage; ( ) recovered or ( ) unrecovered theft.
   
   Pursuant to Mississippi Code § 63-21-15(9)(b):
   
   When expedited title processing is requested, the applicable fees are paid and all documents and information necessary for the Tax Commission to issue the certificate of title or other documents applied for are received by the commission, then the commissions shall complete processing of the application and issue the title or document applied for within seventy-two (72) hours of the time of receipt, excluding weekends and holidays. 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, and an ACV.
   
   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. [See Mississippi Code § 63-21-33] back to top
   
   
3. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle on a Certificate of Title branded “SALVAGED” (“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 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, and an ACV.
   
   CarBuyerUSA will submit these documents along with an Application for Certificate of Title, a Damage Statement, and a Remittance Form (78-900) with the appropriate fee to the Mississippi State Tax Commission for processing.
   
   Thereafter, the Mississippi State Tax Commission shall issue a Certificate of Title branded “SALVAGED” in the name of the insurer. If the vehicle is damaged due to flood or hail, it will be branded “FLOOD DAMAGE” or “HAIL DAMAGE” instead of “SALVAGED”.
   
   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 branded “SALVAGED” (or “FLOOD DAMAGE” or “HAIL DAMAGE”, as appropriate) to the purchaser. [See Mississippi Code §§ 63-21-15, 63-21- 33; MS ADV 48 070 001, Title Law Regulation 51] 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 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 with last known mileage, and a release of any liens.
   
   After receipt of these documents, CarBuyerUSA will submit these documents along with an Application for Certificate of Title, a Damage Statement, and a Remittance Form (78-900) with the appropriate fee to the Mississippi State Tax Commission for processing.
   
   Thereafter, the Mississippi State Tax Commission shall issue a Certificate of Title branded “SALVAGED” in the name of the insurer. Upon receipt, CarBuyerUSA will forward the Certificate of Title branded “SALVAGED” to the insurer for safekeeping.
   
   If the vehicle is recovered, the branded Certificate of Title along with an ACV and police report will be returned to CarBuyerUSA by the insurer in order to obtain the appropriate title depending upon the damage to the vehicle. CarBuyerUSA, acting upon a power of attorney for the insurer, will then sell the vehicle at auction and reassign the insurer’s appropriate title to the purchaser. [See Mississippi Code §§ 63-21-15, 63-21-33, 63-21-39] back to top
   
   
5. What steps must an insurer take in Mississippi to process an ownerretained vehicle?
   
   Pursuant to Mississippi Title Law Regulation 51(b)(2):
   
   If ownership of a salvage vehicle has not been acquired by an insurer, the owner must surrender the certificate of title for such vehicle to a designated agent of the State Tax Commission prior to any sale or disposition of such vehicle and not later than thirty (30) days from the date that the vehicle becomes a salvage vehicle. back to top


6. What legal duties are imposed upon a lienholder following satisfaction of the lien?
   
   Following satisfaction of lien, the lienholder must, within 30 days of satisfaction or 10 days of borrower demand, whichever is earlier, execute release and deliver Certificate of Title and release to subordinate lienholder or owner as applicable. Failure to do so constitutes a misdemeanor punishable by a fine of not more than $500.00, or up to six months imprisonment, or both. [See Mississippi Code §§ 63-21-49(1); 63-21-71] back to top
   
   
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