DATE: September 7, 2005
TO: All Titles and Registrations and County Treasurer Staff
FROM: Mathew Moser, Manager, Titles and Registrations Bureau
SUBJECT: Branding of Owner Retained Salvage Vehicles
Since the implementation of the new salvage law in July 2004, insurance companies have been required to notify the division anytime a vehicle owner accepts a damage settlement and retains the vehicle if the vehicle is to be designated as salvage.
K.S.A. 8-198(d)(3) states “Every insurance company which makes a damage settlement for a vehicle that has incurred damage requiring such vehicle to be designated a salvage vehicle, but does not acquire ownership of the vehicle, shall notify the vehicle owner of the owner's obligation to apply for a salvage title for the motor vehicle, and shall notify the division of this fact in accordance with procedures established by the division. The vehicle owner shall apply for a salvage title within 30 days after being notified by the insurance company.” Accordingly, anytime the division receives notification an owner has retained a salvage vehicle a “stop” will be placed on the title record to prevent any further titling activity until the owner applies for a salvage title. Duplicate, reissue or lien release titles issued to owners retaining salvage vehicles will be stamped in red ink on the lower left of the title. The stamp will also be used in the 1st assignment on the back of the title. The stamp reads:
This vehicle has been designated as
SALVAGE
Application for a salvage title is required
by statute before transferring ownership
or applying for any other type of title
DO NOT OPERATE ON
PUBLIC STREET OR HIGHWAY
This action is being taken to ensure disclosure of the salvage designation to any future purchasers of these vehicles. Any county treasurer offices receiving a title with this stamp should only process a salvage title. Under no circumstances should a rebuilt title be issued using a titlebearing this stamp. All owners with a title bearing this stamp must only apply for a salvage title. Owners who fail to apply for a salvage title will receive correspondence from the Titles and Registrations Bureau advising them their title is being branded as a salvage and the vehicle cannot be operated. The owner must apply for a salvage title at their county treasurer’s office, turning in their title and a TR-13. If the customer’s title is an e-title, they may apply for their salvage title using their registration receipt, in lieu of the title, along with the TR-13. Upon application for the salvage title, the owner will retain his tag so it may be transferred back onto the vehicle after it is inspected by the K.P.H. providing the registration on the vehicle is current.
After applying for their salvage title and the vehicle has been repaired and/or is roadworthy, the owner may obtain an inspection from the Kansas Highway Patrol (K.H.P.). To obtain a rebuilt salvage title, the owners presents their TR-200 as evidence of their salvage application along with the “Inspection Procedures for Owner Retained Salvage Vehicles” form to the K.P.H. personnel conducting the inspection. The inspection may be done immediately after the owner has applied for their salvage title, including the same day. All customers should be advised the rebuilt salvage inspection may only be performed by K.P.H. personnel. Law enforcement designees such as county sheriffs or municipal police departments are not authorized to conduct inspections of vehicles that have salvage titles or rebuilt salvage titles. Customers should not be directed to those agencies for these types of inspections. The K.P.H. is dedicated and committed to providing service to customers and getting inspections completed in as timely a manner as possible. Customers should be informed to contact their local K.P.H. office or Troop Headquarters, or the State Motor Vehicle Enforcement Coordinator’s Office at (316) 744-0546.
Upon completion of the inspection by the K.P.H., the owner may then apply for a rebuilt salvage title, by presenting their MVE-1 form and TR-200 salvage title application receipt. This application may be accepted the same day the customer applied for their salvage title, provided the inspection has been completed. The customer’s tag should be transferred back onto the vehicle, provided the registration is still valid. Please place the two applications together so they do not become separated when they arrive at the state. If they are being hand-carried, please make sure both applications are given to the customer before allowing them to leave your office.
As an additional reminder, vehicles being brought into Kansas on salvage titles or rebuilt salvage titles issued by other states must have MVE-1 inspections conducted by K.P.H. personnel. Law enforcement designees are not authorized to conduct inspections of these vehicles. If the customer is coming in from out of state and wants to apply for a salvage title only, an inspection by K.P.H. personnel is required. Law enforcement designees are not authorized to conduct these inspections either.
To eliminate any inconvenience to the customer and to reduce the workload of the Titles and Registration Bureau’s staff please review the MVE-1 form that was issued to obtain a rebuilt salvage title to ensure that is was issued by the K.P.H.. If the vehicle was mistakenly inspected by a law enforcement designee the owner will need to have the vehicle re-inspected by the K.P.H..
Additionally, any salvage titled vehicle that has been rebuilt and the owner is applying for a rebuilt salvage title is required to have a “notice” affixed by the K.P.H. to indicate the vehicle is a rebuilt salvage vehicle. The control number of the “notice” must be recorded on the MVE-1 form. That number should appear near the top of the MVE-1 form in the “This Vehicle Should Receive The Following Classification Of Title” area, underneath “Rebuilt Salvage Title”. You may also find the “notice” control number recorded in the “Remarks” section of the MVE-1 form. If the “notice” control number has not been recorded on the form, please instruct the owner to contact the inspecting K.P.H. personnel to have the “notice” affixed and/or recorded on the form.
If you have additional questions, please call 785-296-2242. Madeline will determine which of the three managers (Peggy Stalcup, Ray Wilk or mayself) are available to take your call.
Thanks for your continued support and assistance. It is sincerely appreciated.
Cc:Carmen Alldritt, Director of Vehicles
Peggy Stalcup, Assistant Manager
Ray Wilk, Title Manager
05-036 revised