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 firstname.lastname@example.org.
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