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Arkansas 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 Copart in order to sell a vehicle on a Certificate of Title?
  3. What documents must an insurer provide to Copart in order to sell a vehicle on a Damaged Certificate of Title?
  4. What documents must an insurer provide to Copart in order to sell a vehicle as junk/parts only?
  5. 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?
  6. What steps must an insurer take in Arkansas 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?

    Provided below are excerpts from the Arkansas Code relevant to the titling of vehicles that have been acquired through the settlement of a claim:

    Pursuant to Arkansas Transportation Code § 27-14-2302:

    1. When a motor vehicle is water-damaged (see definition below) or sustains damage in an amount equal to or exceeding seventy percent (70%) of its average retail value, as found in the National Automobile Dealers' Association Official Price Guide, or other source approved by the Office of Motor Vehicle, the owner, or insurance company if it obtains ownership of the vehicle through transfer of title as the result of a settlement of an insurance claim, shall forward the properly endorsed certificate of title to the Office of Motor Vehicle together with a fee in the amount now or hereafter prescribed by law for the registration and issuance of a certificate of title.

    2. Upon receipt of such title, there shall be issued a new certificate of title with the word "damaged" printed in the remarks section on the face of the title.

    3. (1) An Arkansas certificate of title issued from an out-of-state certificate of title or comparable ownership document which carries a designation such as "damaged", "salvaged", "water-damaged", "reconstructed", "rebuilt", or other similar classification shall have a brand notation printed in the remarks section on its face as would be required by this subchapter to be printed on an Arkansas certificate of title issued under the provisions of either subsection (b) or subsection (e) of this section.

    4. (A) Provided, however, that an Arkansas certificate of title shall not be issued from an out-of-state junking certificate or other ownership document bearing a designation of "junk", "nonrepairable", or similar classification, it being the intent of this section that any motor vehicle damaged to the extent that it has been so designated shall be dismantled for parts or scrap and shall not be titled in the State of Arkansas.

      (B)(i) An Arkansas title may only be issued if the state that placed the designation on the certificate of title or issued the junking certificate removes the designation or cancels the junking certificate and replaces it with a certificate of title.

      (ii) The designation placed on the certificate of title or issuance of junking certificate may only be modified or removed by that state.

      (iii) No court of this state shall have jurisdiction to change or modify the designation or finding of another state issuing a certificate of title or the junking certificate. back to top

    5. [intentionally omitted]

    6. (1) Upon receipt of such "damaged" certificate of title, or similar title issued by another state, and the sworn statement required to be submitted by subsection (d) of this section, there shall be issued a new certificate of title with the words "previous damage" printed in the remarks section on the face of the title.
      (2) Such brand shall be carried forward and printed in the remarks section on the face of all titles issued thereafter for such motor vehicle.

    7. [intentionally omitted]

    Pursuant Arkansas Transportation Code § 27-14-2305:
           
    The provisions of this subchapter (above) shall not apply to motor vehicles more than five (5) model years old. Any title which is branded pursuant to this subchapter shall retain the brand on the title for the life of the vehicle. 

    Pursuant to Arkansas Transportation Code § 27-14-230:

    "Water-damaged" means damage to a motor vehicle caused by submerging or partially submerging the vehicle in water to the extent that the vehicle was submerged or partially submerged at any water level above the dashboard of the vehicle, regardless of the actual dollar amount of the damage. back to top

  2. 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 an Arkansas power of attorney), an odometer disclosure statement, a release of any liens, the vehicle's actual cash value and cost to repair, and a cover sheet requesting that the vehicle be sold on a Certificate of Title.

    Copart will submit these documents along with an Application for Title and the appropriate fee to the Office of Motor Vehicles for processing. Thereafter, the Office 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 Arkansas Transportation Code § 27-14-2302] back to top

  3. What documents must an insurer provide to Copart in order to sell a vehicle on a Damaged 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 an Arkansas power of attorney), an odometer disclosure statement, a release of any liens, the vehicle's actual cash value and cost to repair, a Declaration of Damage, and a cover sheet requesting that the vehicle be sold on a Damaged Certificate of Title.
    Copart will submit these documents along with an Application for Title and the appropriate fee to the Office of Motor Vehicles for processing.

    Thereafter, the Office of Motor Vehicles shall issue a Certificate of Title with the brand “DAMAGED” 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 Damaged Certificate of Title to the purchaser. [See Arkansas Transportation Code § 27-14-2302] back to top

  4. What documents must an insurer provide to Copart in order to sell a vehicle as junk/parts only?

    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 an Arkansas power of attorney), an odometer disclosure statement, a release of any liens, and a cover sheet requesting that the vehicle be sold as a junk/parts only vehicle.

    Copart, acting under a power of attorney for the insurer, will then sell the vehicle at auction on a Bill of Sale. back to top

  5. 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 stolen, 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 an Arkansas power of attorney), an odometer disclosure statement with last known mileage, a release of any liens, and a cover sheet advising that (i) the vehicle has been stolen; (ii) a clean title for title purposes only is requested; (iii) when and where the vehicle was stolen.

    After receipt of these documents, Copart will submit these documents along with a Application for Title and the appropriate fee to the Office of Motor Vehicles for processing.

    Thereafter, the Office of Motor Vehicles shall issue Certificate of Title in the name of the insurer. Upon receipt, Copart will forward the Certificate of Title to the insurer for safekeeping.

    If the vehicle is recovered, the Certificate of Title along with the vehicle's actual cash value and cost to repair will be returned to Copart by the insurer 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. back to top

  6. What steps must an insurer take in Arkansas to process an ownerretained vehicle?

    Pursuant to Arkansas Transportation Code § 27-14-2302:

    1. When a motor vehicle is water-damaged or sustains damage in an amount equal to or exceeding seventy percent (70%) of its average retail value, as found in the National Automobile Dealers' Association Official Price Guide, or other source approved by the Office of Motor Vehicle, the owner, or insurance company if it obtains ownership of the vehicle through transfer of title as the result of a settlement of an insurance claim, shall forward the properly endorsed certificate of title to the Office of Motor Vehicle together with a fee in the amount now or hereafter prescribed by law for the registration and issuance of a certificate of title.

    2. Upon receipt of such title, there shall be issued a new certificate of title with the word "damaged", printed in the remarks section on the face of the title. back to top

  7. What legal duties are imposed upon a lienholder following satisfaction of the lien?

    Following satisfaction of lien, the lienholder must, within 10 business days after receipt of payment in full by certified funds (cashier's check or certified check), or within 30 business days after receipt of payment in full by noncertified funds, execute a release of his security interest and deliver the Certificate of Title and release to the subordinate lienholder or if none, to the owner.

    Any lienholder who fails to comply with the above requirements shall pay to the person or persons satisfying the lien or encumbrance twenty- five dollars ($25.00) for the first five (5) business days after expiration of the time period prescribed in subsection (b) of this section, and such payment shall double for each five (5) days thereafter in which there is continued noncompliance, up to a maximum of five hundred dollars ($500) for each lien. [See Arkansas Transportation Code §§ 27-14-909(b)(1) and 27-14- 909(e)(1)] back to top
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