Kentucky Title Reference Guide - Insurance Auto Auctions · Kentucky Title Reference Guide The IAA Vehicle Alternate Method of Disposal Guide is a proprietary document prepared solely

Kentucky

Title Reference Guide

The IAA Vehicle Alternate Method of Disposal Guide is a proprietary document prepared solely for internal use by

Insurance Auto Auctions, Inc., its subsidiaries and affiliated entities (“IAA”). No part of this document is to be photocopied,

reproduced, stored in a retrieval system, transmitted electronically, or disclosed to a third party without prior written

consent of Diversified Services Administration or IAA Executive Management.

© 2013. Insurance Auto Auctions, Inc.

I N S U R A N C E A U T O A U C T I O N S

Last Updated 07/2013

Please direct any questions, comments or corrections to IAA’s Title Solutions team.

[email protected] Toll Free - 888-MY-TITLE (888-698-4853)


Page 2

Table of Contents

Contact Information ................................................................................................................................................ 3

Title and Disposal Information ............................................................................................................................... 4

Standard Title Processing ................................................................................................................................... 4

DMV Title Fees .................................................................................................................................................. 4

Duplicate Title .................................................................................................................................................... 5

Other Information ................................................................................................................................................... 5

Deceased Owner Requirements .......................................................................................................................... 5

Name Changes .................................................................................................................................................... 5

Owner Retained .................................................................................................................................................. 5

Un-Recovered Theft............................................................................................................................................ 5

Alternate Disposal ............................................................................................................................................... 5

State Guidelines ...................................................................................................................................................... 6

Title Requirements by Vehicle Type .................................................................................................................. 6

Title Branding Guidelines ................................................................................................................................... 7

Determining the Correct Title Type .................................................................................................................... 8

Frequently Asked Questions ................................................................................................................................... 9

Is a copy of the written estimate needed to process the title? ............................................................................. 9

What type of PoA is required if the title is not signed? ...................................................................................... 9

What is required to correct a mistake that is made by the owner on the back of the title? ................................. 9

Does the Lienholder hold the title in Kentucky? ................................................................................................ 9

What paperwork is required when an owner is deceased? ................................................................................. 9

What do I do if the insured cannot locate the title? ............................................................................................ 9

What if my insured’s name is different than on the face of the title? ................................................................. 9

Example Documents ............................................................................................................................................. 10

Kentucky Title (Front) ...................................................................................................................................... 10

Kentucky Title (Back)....................................................................................................................................... 11

Glossary ................................................................................................................................................................ 12

Index ..................................................................................................................................................................... 14






Page 3

Please note - This document is intended to cover most requirements for obtaining a negotiable, lien-free title. It

is not intended to replace motor vehicle department regulations or rulings. If you have title questions please

contact IAA’s Title Solutions Department ([email protected]).

Contact Information

IAA Website: http://www.iaai.com

Title Questions:

IAA – Title Solutions

7835 Woodland DriveSuite 200Indianapolis, IN 46278Toll Free: 888-698-4853

FAX: 855-584-5198

[email protected]

IAA Locations in Kentucky:

Ashland Bowling Green

123 Four Wheel Drive 710 Woodford Avenue

Ashland, KY 41102 Bowling Green, KY 42101

Phone: 606-928-1234 Phone: 270-843-3555

Fax: 606-928-0276 Fax: 270-843-4897

Auction: Bi-Tuesday at 9:30 AM ET Auction: Second/Fourth Friday 9:30AM CT

Paducah Louisville

1701 Lane Road 1825 South Preston Highway

Paducah, KY 42003 Shepherdsville, KY 40165

Phone: 270-443-8565 Phone: 502-543-0831

Fax: 270-443-8549 Fax; 502-543-1289

Auction: Third Tuesday of each month Auction: First/Third Friday

Motor Vehicle Department:

Division of Motor Vehicle Licensing

200 Mero Street

Frankfort, KY 40622

Phone: 502-564-2737

Kentucky Motor Vehicle Licensing

mailto:[email protected]

http://www.iaai.com/

mailto:[email protected]

http://mvl.ky.gov/MVLWeb/






Page 4

Title mistakes can be costly and can significantly delay the sale of salvage vehicles. Catching these potential

errors before the title paperwork goes to the auction can prevent title problems that will delay a vehicle’s sale by

weeks or even months.

Title and Disposal Information

Standard Title Processing

IAA will apply for the appropriate title in the insurance company’s name. In order to initiate this process the

vehicle provider must provide the following documentation:

Properly Executed Title –

o Non-Lien – Original title signed by all titled owners

o Lien – Original title, unsigned

Lien released on front of title by lienholder – requires signature and stamp

Generic Notarized Power of Attorney, signed by all titled owners

o Missing Title – Generic, Notarized Power of Attorney, signed by all titled owners

Lien Release (if applicable) –

o Lien released on the front of the title by a financial institute (bank, credit union, etc)

o Must be released by signature and stamp

o Must include year, make, model, and VIN and titled owner’s name, file number / date of filing. Names

must match

o Title Lien Statement State Form TC96-187E required – no alternates

Odometer Disclosure – Odometer disclosure is required for vehicles less than 10 model years. This can be

accomplished on the title or with a separate odometer statement, signed by the owner. Mileage should be

stated with a verified reading and should not be an estimate or guess.

If IAA is not processing the title, please attach the properly executed sale document and any additional

required forms as outlined above to your coversheet, with your selling instructions noted, and forward to

the appropriate IAA Branch.

DMV Title Fees

Salvage title fee: $9.00

Duplicate title fee: $6.00

U/T: $9.00

ATV: $15.00






Page 5

Duplicate Title

With the insured’s cooperation, IAA can apply for a duplicate title. IAA will need:

One (1) generic, notarized Power of Attorney from owner.

Lien release (if applicable)

Other Information

Deceased Owner Requirements

If JTWROS, surviving spouse signs title; copy of Death Certificate required

If joint ownership and the title states "or" then only one (1) owner needs to sign

If no conjunction or the title states "and" then survivor must supply a court order or letter of

administration signed by a judge (no death cert is needed) and executor must sign the title and provide

court order

Executor – if not signing title, PoA is required

Name Changes

If your insured’s name is different than it appears on the title (i.e. different last name or nickname

instead of first name), a copy of the marriage license or court document stating legal name has changed

may be required in addition to the signed title. Please contact branch if questions arise.

If the name is completely different then this could be a situation where the owner purchased the vehicle

from someone and didn’t title it properly. In most cases the owner will be required to pay sales taxes

and have the vehicle titled properly before it can be sold. Contact your local IAA auction or Title

Solutions for assistance in resolving these situations.

PoA or one in the same

Owner Retained

If the vehicle has been declared a total loss by the Provider the owner is required to obtain salvage title

and provide a copy of the salvage title to the Provider. Settlement held until Salvage Title received.

Un-Recovered Theft

The provider is required to obtain a salvage title in their name because the provider will need proof of

ownership if the vehicle is recovered. PoA and copy of DL for all titled owners. Salvage title is only

option required

Alternate Disposal

Parts Only—KY title only, No lien, Taxes current year paid






Page 6

State Guidelines

Title Requirements by Vehicle Type

Vehicle Type Titled Note

Passenger vehicles Yes

ATVs * Contact branch for specific details

Boats Yes After 1/1/1986

Commercial trucks (i.e. tractor trailers) Yes

Farm Equipment Yes

Manufactured and mobile homes Yes

Mopeds No Sell on Bill of Sale

Motor Homes and RV’s Yes

Motorcycles Yes

Off-road vehicles No Sell on Bill of Sale

Snowmobiles No Sell on Bill of Sale

Trailers with GVRW greater than 3000

lbs

Yes

Trailers with GVWR 3000 lbs or less No Sell on bill of sale






Page 7

Title Branding Guidelines

Salvage Title

Salvage titles are required for vehicles that are stolen or have been deemed

uneconomical to repair by the insurance company.

Salvage Repairable – A Salvage-Repairable title is for vehicles that have been declared

a total loss but are repairable. This type of title requires at least one sub-brand.

Collision

Theft

Fire

Vandalism

Salt

Flood

Other

Clear Title

To request a clear title we need the following – Must be accompanied by letter

from Insurance Company on their letterhead, stating that the vehicle has less

then 75% damage and are requesting a clear title. Also must be accompanied by

the original repair estimate. Affidavit of non-highway use, Resale certificate for

provider






Page 8

Determining the Correct Title Type

Vehicle declared a

total loss Is vehicle a

junked vehicle, snowmobile,

ORV, or moped?

Salvage Title

Required

Vehicle not titled

in Kentucky

Apply for Clear

Title

Is vehicle an

ATV?

Is cost of repair </ 75% of ACV?

Is vehicle an

unrecovered theft?

Y

Y

Y

Y

N

N

N

Titling at owner’s

discretion






Page 9

Frequently Asked Questions

Is a copy of the written estimate needed to process the title?

No. We do not require a damage appraisal to process the title in the state of Kentucky.

What type of PoA is required if the title is not signed?

The state of Kentucky accepts generic notarized Power of Attorney form.

What is required to correct a mistake that is made by the owner on the back of the title?

If there is an error on the title please contact the branch to determine if an Affidavit of Correction will suffice or

if a duplicate title is required. Affidavit of Correction is acceptable to correct simple errors, not whiteout or

heavy mark over.

Does the Lienholder hold the title in Kentucky?

No. In Kentucky the owner will hold the title even if a lien is on the title.

What paperwork is required when an owner is deceased?

Please refer to the section entitled Other Information.

What do I do if the insured cannot locate the title?


What if my insured’s name is different than on the face of the title?







Page 10

Example Documents

Kentucky Title (Front)






Page 11

Kentucky Title (Back)






Page 12

Glossary

Term Definition

Affidavit of Correction A notarized form that can correct certain errors made by an owner on title.

Appraisal Written estimate detailing damage and replacement costs for a vehicle. Also known as an

Estimate of Repair.

Date of Loss Date accident occurred or vehicle was stolen.

Duplicate Title A duplicate title is a replacement title obtained through the state DMV. When a duplicate

title is issued the original title becomes void.

Electronic Title Some states are now using E-Titles especially when there’s a Lienholder listed. An E –

Title is held in the DMV system until the Lienholder releases the lien and then the title is

printed and mailed out to the specified party.

Exceeds Mechanical

Limits (EML)

Exceeds Mechanical Limits is an option on most titles that is selected when the vehicle

has travelled more miles than the odometer can register. Many older vehicles were

limited to 99,999.9 miles so if the vehicle had exceeded the odometers mechanical limits

when it had travelled 100,000.0 miles. This option is rarely selected on newer vehicles

since most odometers now register up to 999,999 miles.

Lien Release When a lien has been perfected on a vehicle the state requires the lienholder to release

the lien indicating that the lien has been satisfied before ownership of the vehicle can be

transferred. Lien releases are typically executed by having the lienholder sign and date

the face of the title or by providing a separate notarized lien termination statement on

lienholder letterhead. If a separate statement is used the statement should include a

description of the vehicle (including VIN, year, make and model) and the owner’s

name(s).

Not Actual Mileage

(NAM)

Not Actual Mileage is an option on most titles that allows the owner to indicate that the

mileage shown on the odometer is not a true representation of the mileage of the vehicle.

This can happen on some vehicles when the odometer or the vehicles engine control unit

(ECU) is replaced or when the odometer or its related systems are damaged.

Odometer Disclosure Odometer disclosure is required for vehicles less than 10 model years. This can be

accomplished on the title or with a separate odometer statement, signed by the owner.

Mileage should be stated with a verified reading and should not be an estimate or guess.

Owner The name listed on the front of the title. It usually states Owner or Legal Owner.

Owner Retained An owner retained vehicle is any vehicle deemed a total loss by the provider that the

owner elects to maintain ownership of. Most states will require that the title is converted

into some form of salvage title. The rules regarding who is responsible for transferring

the title vary by state.






Page 13

Glossary

Term Definitions

Parts Only Title A Title issued with the sole intent of allowing the vehicle to be sold for parts. Vehicles

with parts only titles are typically not allowed to be titled again or driven on public

roads.

Power of Attorney (PoA) PoA allows the appointed person/Provider to sign Title, application or any other

documents related to the vehicle listed on the form on behalf of the owner.

Properly Executed Title Title that is properly signed by owner and LH has released lien if applicable.

Provider Insurance company, charity, or individual selling the vehicle through IAA.

Repair Estimate Written appraisal detailing damage and replacement costs for a vehicle. Also known as a

Damage Appraisal.

Sale Document Document that was used to sell the vehicle at an IAA auction. (bill of sale, MV907A,

clear title, salvage title, certificate of destruction, junk title, scrap title etc.)

Salvage Title Titles are branded Salvage on vehicles 10 model years of age or newer that are stolen or

have been deemed uneconomical to repair by the insurance company. These vehicles are

issued a salvage title and may be subject to repair and re-inspection.

Title Problems Title paperwork received by IAA that is not correct or incomplete and requires additional

documents or information before the title can be processed and vehicle can be sold.

Title Solutions Innovative service provided by IAA that offers prompt solutions for your toughest title

problems.

Total Loss Any vehicle that has been deemed uneconomical to repair by the insurance company.

Un-Recovered Theft Any vehicle that has been stolen and not recovered.






Page 14

Index

A

Affidavit of Correction ......................................... 12

Appraisal ......................................................... 12, 13

B

Boats ....................................................................... 6

C

Commercial truck.................................................... 6

D

Deceased Owner ..................................................... 5

Duplicate Title .................................................. 5, 12

E

EML ...................................................................... 12

F

Farm Equipment...................................................... 6

L

Lien release ....................................................... 4, 12

M

Manufactured and mobile homes ............................ 6

Mopeds .................................................................... 6

Motorcycles............................................................. 6

N

NAM ..................................................................... 12

Name changes ......................................................... 5

O

Odometer disclosure ............................................... 4

Owner Retained ................................................ 5, 12

P

POA................................................................... 9, 13

T

Trailers .................................................................... 6

U

Un-recovered Theft ........................................... 5, 13