Missouri 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 an Original Certificate of Title?
3. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle on a Salvage Certificate of Title?
4. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle on a Junking Certificate?
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 Missouri 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 a vehicle that has been acquired through the settlement of a claim?
   
   Excerpts of pertinent Missouri state laws addressing salvage and junk vehicles are set forth below:
   
   "Junk vehicle": a vehicle which is incapable of operation or use upon the highways and has no resale value except as a source of parts or scrap, and shall not be titled or registered.
   “Salvage vehicle”: a motor vehicle, semitrailer, or house trailer which:
   (a) Has been damaged to the extent that the total cost of repairs to rebuild or reconstruct the vehicle to its condition immediately before it was damaged for legal operation on the roads or highways exceeds seventy-five percent of the fair market value of the vehicle immediately preceding the time it was damaged;
   (b) By reason of condition or circumstance, has been declared salvage, either by its owner, or by a person, firm, corporation, or other legal entity exercising the right of security interest in it;
   (c) Has been declared salvage by an insurance company as a result of settlement of a claim for loss due to damage or theft;
   (d) Ownership of which is evidenced by a salvage title; or
   (e) Is abandoned property which is titled pursuant to section 304.155, RSMo, or section 304.157, RSMo, and designated with the words 'salvage/abandoned property'.
   
   The total cost of repairs to rebuild or reconstruct the vehicle shall not include the cost of repairing, replacing, or reinstalling inflatable safety restraints, tires, sound systems, or any sales tax on parts or materials to rebuild or reconstruct the vehicle. For purposes of this definition, 'fair market value' means the retail value of a motor vehicle as:
   
   a. Set forth in a current edition of any nationally recognized compilation of retail values, including automated databases, or from publications commonly used by the automotive and insurance industries to establish the values of motor vehicles;
   b. Determined pursuant to a market survey of comparable vehicles with regard to condition and equipment; and
   c. Determined by an insurance company using any other procedure recognized by the insurance industry, including market surveys, that is applied by the company in a uniform manner;
   [See Missouri Statutes, TITLE XIX, Chapter 301, § 301.010(22)& (50)]
   
   Pursuant to an August 20, 2004 bulletin issued by the Missouri Department of Revenue Division of Motor Vehicle and Drivers Licensing:
   [A]n insurance company may apply for an original certificate of title, if it has acquired a motor vehicle, trailer, or all-terrain vehicle as a result of a settlement of a claim for loss due to damage in which the vehicle damage is less than that of a salvage vehicle. To qualify, the total cost to repair the damage to the unit must be 75 percent or less of the pre-damaged fair market value.
   Insurance companies that are unable to obtain a certificate of title from claimants, can obtain a title per Missouri Statutes, TITLE XIX, Chapter 301, § 301.193:
   1. Any person who purchases or is the owner of real property on which vehicles, as defined in section 301.011, vessels or watercraft, as defined in section 306.010, RSMo, or outboard motors, as that term is used in section 306.530, RSMo, have been abandoned, without the consent of said purchaser or owner of the real property, may apply to the department of revenue for a certificate of title. Any insurer which purchases a vehicle through the claims adjustment process for which the insurer is unable to obtain a negotiable title may make an application to the department of revenue for a salvage certificate of title pursuant to this section. Prior to making application for a certificate of title on a vehicle under this section, the insurer or owner of the real estate shall have the vehicle inspected by law enforcement pursuant to subsection 9 of section 301.190, and shall have law enforcement perform a check in the national crime information center and any appropriate statewide law enforcement computer to determine if the vehicle has been reported stolen and the name and address of the person to whom the vehicle was last titled and any lienholders of record. The insurer or owner or purchaser of the real estate shall, thirty days prior to making application for title, notify any owners or lienholders of record for the vehicle by certified mail that the owner intends to apply for a certificate of title from the director for the abandoned vehicle. The application for title shall be accompanied by:
   (1) A statement explaining the circumstances by which the property came into the insurer, owner or purchaser's possession; a description of the property including the year, make, model, vehicle identification number and any decal or license plate that may be affixed to the vehicle; the current location of the property; and the retail value of the property;
   (2) An inspection report of the property, if it is a vehicle, by a law enforcement agency pursuant to subsection 9 of section 301.190; and
   (3) A copy of the thirty-day notice and certified mail receipt mailed to any owner and any person holding a valid security interest of record.
   2. Upon receipt of the application and supporting documents, the director shall search the records of the department of revenue, or initiate an inquiry with another state, if the evidence presented indicated the property described in the application was registered or titled in another state, to verify the name and address of any owners and any lienholders. If the latest owner or lienholder was not notified the director shall inform the insurer, owner, or purchaser of the real estate of the latest owner and lienholder information so that notice may be given as required by subsection 1 of this section. Any owner or lienholder receiving notification may protest the issuance of title by, within the thirty-day notice period and may file a petition to recover the vehicle, naming the insurer or owner of the real estate and serving a copy of the petition on the director of revenue. The director shall not be a party to such petition but shall, upon receipt of the petition, suspend the processing of any further certificate of title until the rights of all parties to the vehicle are determined by the court. Once all requirements are satisfied the director shall issue one of the following:
   (1) An original certificate of title if the vehicle examination certificate, as provided in section 301.190, indicates that the vehicle was not previously in a salvaged condition or rebuilt;
   (2) An original certificate of title designated as prior salvage if the vehicle examination certificate as provided in section 301.190 indicates the vehicle was previously in a salvaged condition or rebuilt;
   (3) A salvage certificate of title designated with the words "salvage/abandoned property" or junking certificate based on the condition of the property as stated in the inspection report. An insurer purchasing a vehicle through the claims adjustment process under this section shall only be eligible to obtain a salvage certificate of title or junking certificate. back to top
   
   
2. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle on an Original 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, and a release of any liens.
   
   CarBuyerUSA will submit these documents along with an Application for Original Certificate of Title (DOR-108), Certification by Insurance Company of Vehicle Damage (DOR-5042), and the appropriate fee to the Department of Revenue – Motor Vehicle Bureau for processing.
   
   Thereafter, the Department of Revenue – Motor Vehicle Bureau shall issue an Original 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 Original Certificate of Title to the purchaser. [See Missouri Statutes, TITLE XIX, Chapter 301, §§ 301.227(1), 301.010 (50); August 20, 2004 bulletin issued by the Missouri Department of Revenue Division of Motor Vehicle and Drivers Licensing] back to top
   
   
3. 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, and a release of any liens.
   
   CarBuyerUSA will submit these documents along with an Application for Salvage Certificate of Title (DOR-108) and the appropriate fee to the Department of Revenue – Motor Vehicle Bureau for processing.
   
   Thereafter, the Department of Revenue – Motor Vehicle Bureau 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 Missouri Statutes, TITLE XIX, Chapter 301, §§ 301.227(1), 301.010 (50); August 20, 2004 bulletin issued by the Missouri Department of Revenue Division of Motor Vehicle and Drivers Licensing] back to top
   
   
4. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle on a Junking 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, and a release of any liens.
   
   CarBuyerUSA will submit these documents along with an Application for Junking Title of Title (DOR-108) and the appropriate fee to the Department of Revenue – Motor Vehicle Bureau for processing.
   
   Thereafter, the Department of Revenue – Motor Vehicle Bureau shall issue a Junking 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 Junking Certificate of Title to the purchaser. [See Missouri Statutes, TITLE XIX, Chapter 301, §§ 301.227(2)&(3), 301.010(22), 12 CSR 10-23.355; August 20, 2004 bulletin issued by the Missouri Department of Revenue Division of Motor Vehicle and Drivers Licensing ] 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?
   
   Notwithstanding the provisions of subsection 1 of this section, an insurance company which settles a claim for a stolen vehicle shall be issued a negotiable salvage certificate of title without the payment of any fee upon proper application within thirty days after settlement of the claim for such stolen vehicle. However, if the insurance company upon recovery of a stolen vehicle determines that the stolen vehicle has not sustained damage to the extent that the vehicle would have otherwise been declared a salvage vehicle pursuant to subdivision (50) of section 301.010, then the insurance company may have the vehicle inspected by the Missouri state highway patrol, or other law enforcement agency authorized by the director of revenue, in accordance with the inspection provisions of subsection 9 of section 301.190. Upon receipt of title application, applicable fee, the completed inspection, and the return of any previously issued negotiable salvage certificate, the director shall issue an original title with no salvage designation. Upon the issuance of an original title the director shall remove any indication of the negotiable salvage title previously issued to the insurance company from the department's electronic records. [See Missouri Statutes, TITLE XIX, Chapter 301, §§ 301.227(8)]
   
   
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   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 or accompanied by a power of attorney), an odometer disclosure statement with last known mileage, a police report of the theft, and a release of any liens.
   
   After receipt of these documents, CarBuyerUSA will submit these documents along with an Application for Salvage Certificate of Title (DOR-108) and the appropriate fee to the Department of Revenue – Motor Vehicle Bureau for processing.
   
   Thereafter, the Department of Revenue – Motor Vehicle Bureau shall issue a 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 and if the total cost to repair the damage to the vehicle is 75% or less of the pre-damaged fair market value, the insurer can apply for an Original Certificate of Title. The insurer will return to CarBuyerUSA the Salvage Certificate of Title and Vehicle Examination Certificate (DOR- 551) completed by the Missouri State Highway Patrol or the St. Louis City or County Auto Theft Unit.
   
   Thereafter, CarBuyerUSA will submit these documents along with an Application for Original Certificate of Title (DOR-108) and the appropriate fee to the Department of Revenue – Motor Vehicle Bureau for processing.
   
   Thereafter, the Department of Revenue – Motor Vehicle Bureau shall issue an Original Certificate of Title in the name of the insurer.
   
   If the vehicle is recovered and if the total cost to repair the damage to the vehicle is more than 75% of the pre-damaged fair market value, the insurer returns the Salvage Certificate of Title to CarBuyerUSA.
   
   In both instances, CarBuyerUSA, acting upon a power of attorney for the insurer, will then sell the vehicle at auction, reassign the insurer’s Salvage or Original Certificate of Title (depending upon the damage) to the purchaser. [See Missouri Statutes, TITLE XIX, Chapter 301, §§ 301.010(50)(c); 301.227(8); August 20, 2004 bulletin issued by the Missouri Department of Revenue Division of Motor Vehicle and Drivers Licensing ] back to top


6. What steps must an insurer take in Missouri to process an ownerretained vehicle?
   
   Every insurance company which pays a claim for repair of a motor vehicle which as the result of such repairs becomes a reconstructed motor vehicle as defined in section 301.010 or which pays a claim on a salvage vehicle as defined in section 301.010 and the insured is retaining ownership of the vehicle, shall in writing notify the claimant, if he is the owner of the vehicle, and the lienholder if a lien is in effect, that he is required to surrender the certificate of ownership, and the documents and fees required pursuant to subsection 4 of this section to obtain a reconstructed motor vehicle certificate of ownership or documents and fees as otherwise required by law to obtain a salvage certificate of ownership, from the director of revenue. The insurance company shall within thirty (30) days of the payment of such claims report to the director of revenue the name and address of such claimant, the year, make, model, vehicle identification number, and license plate number of the vehicle, and the date of loss and payment.
   
   NOTE: The Notice of Salvaged Vehicle Titling Requirement form (DOR- 5043- Attachment B) may be used for notification purposes. [See Missouri Statutes, TITLE XIX, Chapter 301, §§ 301.020(5); August 20, 2004 bulletin issued by the Missouri Department of Revenue Division of Motor Vehicle and Drivers Licensing] back to top


7. What legal duties are imposed upon a lienholder following satisfaction of the lien?
   
   Pursuant to Missouri Statutes, TITLE XIX, Chapter 301, § 301.640:
   
   
   1. Upon the satisfaction of any lien or encumbrance of a motor vehicle or trailer, the lienholder shall, within ten business days release the lien or encumbrance on the certificate or a separate document, and mail or deliver the certificate or a separate document to the owner or any person who delivers to the lienholder an authorization from the owner to receive the certificate or such documentation. The release on the certificate or separate document shall be notarized. Each perfected subordinate lienholder if any, shall release such lien or encumbrance as provided in this section for the first lienholder. The owner may cause the certificate to be mailed or delivered to the director of revenue, who shall issue a new certificate of ownership upon application and payment of the required fee. A lien or encumbrance shall be satisfied for the purposes of this section when a lienholder receives payment in full in the form of certified funds, as defined in section 381.410, RSMo.
   2. If the electronic certificate of ownership is in the possession of the director of revenue, the lienholder shall notify the director within ten business days of any release of a lien and provide the director with the most current address of the owner. The director shall note such release on the electronic certificate and if no other lien exists the director shall mail or deliver the certificate free of any lien to the owner.
   3. If the purchase price of a motor vehicle or trailer did not exceed six thousand dollars at the time of purchase, a lien or encumbrance which was not perfected by a motor vehicle financing corporation whose net worth exceeds one hundred million dollars, or a depository institution, shall be considered satisfied within six years from the date the lien or encumbrance was originally perfected unless a new lien or encumbrance has been perfected as provided in section 301.600. This subsection does not apply to motor vehicles or trailers for which the certificate of ownership has recorded in the second lienholder portion the words "subject to future advances".
   4. Any lienholder who fails to comply with subsection 1 or 2 of this section shall pay to the person or persons satisfying the lien or encumbrance twenty- five dollars for the first ten business days after expiration of the time period prescribed in subsection 1 or 2 of this section, and such payment shall double for each ten days thereafter in which there is continued noncompliance, up to a maximum of five hundred dollars for each lien. If delivery of the certificate or other lien release is made by mail, the delivery date is the date of the postmark for purposes of this subsection.
   5. Any person who knowingly and intentionally sends in a separate document releasing a lien of another without authority to do so shall be guilty of a class C felony. back to top
      
      
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