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You are here: Home . bulletins . 2017 . b-0027-17

COMMISSIONER'S BULLETIN # B-0027-17

September 15, 2017


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


Re: Hurricane Harvey – Flood Damaged Vehicles

Governor Greg Abbott issued a proclamation declaring a disaster due to the effects of Hurricane Harvey. The proclamation directs that all necessary measures, both public and private, as authorized under §418.017 of the Texas Government Code, be implemented to meet that threat.

President Donald Trump issued a major disaster declaration and ordered federal aid to supplement state and local recovery efforts in the areas affected by Hurricane Harvey.

Because of the recent heavy rains and flooding across Texas, the Texas Department of Insurance issues this bulletin to remind insurers of their obligations regarding losses to motor vehicles due to flood damage. Titles for flood-damaged vehicles must comply with the Texas Transportation Code.

Under Transportation Code §501.1001(a), an insurance company licensed to conduct business in Texas that acquires, through payment of a claim, ownership, or possession of a salvage motor vehicle or nonrepairable motor must surrender the properly assigned evidence of ownership and apply for the appropriate title under Transportation Code §501.097. Transportation Code §501.095 prohibits an insurer from selling a motor vehicle to which §501.095 applies unless the Texas Department of Motor Vehicles (TxDMV) 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 §501.09112(d) and (f) require that a salvage or nonrepairable vehicle title or a salvage or nonrepairable record of title for a vehicle that is a salvage or nonrepairable motor vehicle because of damage caused exclusively by flood must bear a notation that the TxDMV considers appropriate. The TxDMV applies the “FLOOD DAMAGE” notation to these vehicles.

TDI encourages insurers to take measures to ensure that Vehicle Identification Numbers and other pertinent information are accurate. You can find further information about salvage vehicle titles and requirements at www.txdmv.gov/salvage-nonrepairable-manual.

Direct questions about this bulletin to the Property and Casualty Lines Office by calling (512) 676-6710, or by email at CommercialPC@tdi.texas.gov.



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Last updated: 09/15/2017

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