In the wake of heavy flooding in Texas, officials there said they have issued a reminder to insurers of their responsibilities concerning changing title information on vehicles that have been inundated.
Texas has been the target of heavy rains this summer and the Texas Department of Insurance and Texas Department of Transportation issued a special bulletin regarding losses to motor vehicles due to flood damage.
Insurers were 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.
Under the state's transportation law, an insurer acquiring a salvaged motor vehicle or nonrepairable motor vehicle covered by a Texas certificate of title or a manufacturer's certificate of origin must surrender a properly assigned title or manufacturer's certificate of origin to TxDOT.
It was noted that an insurer may not sell a flooded motor vehicle without issuing a "salvage vehicle title or a nonrepairable vehicle title for the motor vehicle or [unless] a comparable ownership document has been issued by another state or jurisdiction for the motor vehicle."
The insurance department and TxDOT also urged insurers to take measures to ensure that Vehicle Identification Numbers and other pertinent information are accurate.
Leslie Hurley, manager, personal lines section at TDI, said there had been no recent problems. "We just want to remind insurers."
She said the department records would not reflect flooded cars because claims would show up as physical damage.
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