2005
Insurance Reference Manual
Personal Insurance Federation of California Insurance Reference Book
CALIFORNIA VEHICLE CODE
CONCERNING TOTAL LOSS SALVAGE VEHICLES
§11515 "Total Loss Salvage Vehicle; Salvage Certificate; Reporting Requirement; Violation"
(a) whenever an insurance company makes a total loss settlement on a total loss salvage vehicle, the insurance company, an occupational licensee of the DMV authorized by the insurance company, or a salvage pool authorized by the insurance company, shall within ten days from the settlement of the loss, forward the properly endorsed certificate of ownership or other evidence of ownership acceptable to the DMV, the license plates, and a $3.00 fee to the DMV. The DMV, upon receipt of the certificate of ownership or other evidence of title, the license plates, and the $3.00 fee, shall issue a salvage certificate for the vehicle;
(b) whenever an owner of a total loss salvage vehicle retains possession of the vehicle, the insurance company shall notify the DMV of the retention on a form prescribed by the DMV. The insurance company shall also notify the insured or owner of the insured's or owner's responsibility to comply with this subdivision. The owner shall, within ten days from the settlement of the loss, forward the properly endorsed certificate of ownership or other evidence of ownership acceptable to the DMV, the license plates, and a $3.00 fee to the DMV. After receipt of evidence of title, license plates, and the $3.00 fee, shall issue a salvage certificate for the vehicle;
(c) whenever a total loss salvage vehicle is not the subject of an insurance company settlement, he owner shall, within ten days submit the properly endorsed certificate of ownership, other evidence of ownership acceptable to the DMV, the license plates, and the $3.00 fee to the DMV;
(d) whenever a total loss salvage vehicle is not the subject of an insurance company settlement, a self-insurer shall within ten days submit the proper ownership information, license plates and fee.
(e) prior to sale or disposal of a total loss salvage vehicle, the owner, owner's agent, or salvage pool, shall obtain a properly endorsed salvage certificate and deliver it to the purchaser within ten days after payment in full for the salvage vehicle. The DMV shall accept the endorsed salvage certificate in lieu of the certificate of ownership on other evidence of ownership when accompanied by an application and other documents and fees.
(f) This section doesn't apply to a stolen vehicle, until the vehicle has been recovered by the owner and only if the vehicle is a total loss salvage vehicle.
(g) A violation of (a) (b) (d) or (e) is a misdemeanor. A violation of (c) is an infraction, except that, if committed with intent to defraud.
(h)(1) Effective January 1, 2000, a salvage certificate issued under §11515 of the Vehicle Code, shall include a statement that the seller and any subsequent sellers that transfer ownership of a total loss vehicle pursuant to a properly endorsed salvage certificate are required to disclose to the purchaser at, or prior to, the time of sale that the vehicle has been declared a total loss salvage vehicle.
(h)(2) The seller shall be deemed to have met the disclosure requirement described in paragraph (1) if the seller complies with subdivision (e) or prominently posts a notice at his or her place of business that the seller sells total loss salvage vehicles.
(h)(3)(1) A seller who fails to make the disclosure described in paragraph (1) or (2) shall be subject to a civil penalty of not more than $500.
NOTE: All of the above and §11515 applies to total loss settlement on nonrepairable vehicles (substitute nonrepairable vehicle for total loss salvage vehicle).
§11515.1 "Salvage Pool; Sale of Vehicle" - A salvage pool shall sell a vehicle only with either of the following:
(a) a salvage certificate, except those vehicles described in subdivision (f) of California Vehicle Code §11515, which may be sold with a certificate of title.
(b) a nonrepairable vehicle certificate, except those vehicles described in subdivision (f) of §11515.2, which may be sold with a certificate of title.
§11540 "Salvage Pools" -
(a) A salvage pool shall maintain an accurate record of every vehicle it acquires and every vehicle it disposes of, and shall notify the DMV of the disposition of any vehicle pursuant to Section 590 of the California Vehicle Code.
(b) whenever a salvage pool acquires a total loss salvage vehicle, a nonrepairable vehicle, or a recovered stolen vehicle and the license plates on the vehicle have not been removed, the salvage pool shall, prior to disposing of that vehicle, remove and submit the license plates to the DMV. The salvage pool shall maintain an accurate record of every license plate it acquires and disposes of which records shall be maintained for two years and be open for inspection.
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