• Increase Text Icon
  • Decrease Text Icon
  • Email Icon
  • Print this page
You are here: Home . bulletins . 2007 . cc35

COMMISSIONER'S BULLETIN # B-0035-07

August 17, 2007


To: ALL INSURANCE COMPANIES, CORPORATIONS, EXCHANGES, MUTUALS, RECIPROCALS, ASSOCIATIONS, LLOYDS, OR OTHER INSURERS WRITING PROPERTY AND CASUALTY INSURANCE IN THE STATE OF TEXAS AND TO OTHER AGENTS AND REPRESENTATIVES AND THE PUBLIC GENERALLY


Re: Flood-Damaged Vehicles

As a result of the recent heavy rains and flooding across Texas, the Texas Department of Insurance (TDI) in cooperation with the Texas Department of Transportation (TxDOT) is issuing this bulletin to remind insurers of their obligations regarding losses to motor vehicles due to flood damage. Insurers are reminded that the titling of flood-damaged vehicles must be in accordance with the Texas Transportation Code and the applicable rules of the Texas Department of Transportation Vehicle Titles and Registration Division.

Pursuant to Transportation Code, §501.092(a), an insurer that is licensed to conduct business in Texas and acquires, through payment of a claim, ownership, or possession of a salvage motor vehicle or nonrepairable motor vehicle covered by a Texas certificate of title or a manufacturer's certificate of origin, shall surrender a properly assigned title or manufacturer's certificate of origin to TxDOT. Transportation Code, §501.092(c) further provides that an insurer may not sell a motor vehicle to which §501.092 applies unless TxDOT has issued a salvage vehicle title or a nonrepairable vehicle title for the motor vehicle or a comparable ownership document has been issued by another state or jurisdiction for the motor vehicle. Transportation Code, §501.103(d) states "a salvage vehicle title for a vehicle that is a salvage motor vehicle because of damage caused exclusively by flood must bear a notation on its face that the department considers appropriate."

TDI and TxDOT also urge insurers to take measures to ensure that Vehicle Identification Numbers and other pertinent information are accurate. Further information regarding salvage vehicle titles and requirements may be found at ftp://ftp.dot.state.tx.us/pub/txdot-info/vtr/salnrmv.pdf.

Questions regarding this bulletin may be directed to Leslie Hurley, Manager, Personal Lines Section, TDI, at (512) 322-2266 or leslie.hurley@tdi.state.tx.us.

Marilyn Hamilton, Associate Commissioner Rebecca Davio, Ph.D., Director

Property & Casualty Program MC 104-PC Vehicle Titles and Registration Division

Texas Department of Insurance Texas Department of Transportation



For more information contact:

Contact Information and Other Helpful Links