Wisconsin State Title Processing Procedures

1. What form of title must an insurer obtain in connection with the sale of a vehicle that has been acquired through the settlement of a claim?
2. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle on a Certificate of Title (aka “Clean Title”)?
3. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle on a Certificate of Title branded “THIS IS A SALVAGE VEHICLE” (aka “Salvage Branded”)?
4. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle on a Certificate of Title branded “THIS VEHICLE TRANSFERRED TO INSURER UPON PAYMENT OF CLAIM” (aka “Insurance Claim Paid Branded”)?
5. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle as junk?
6. What documents must an insurer provide to CarBuyerUSA in order to sell a recovered theft vehicle recovered substantially intact with no substantial damage, where title is still in the name of the insured?
7. What steps must an insurer take in Wisconsin to process an owner-retained vehicle?
8. What legal duties are imposed upon a lienholder following satisfaction of the lien?

1. What form of title must an insurer obtain in connection with the sale of a vehicle that has been acquired through the settlement of a claim?
   
   Wisconsin statutes regarding vehicle titling of insurance claim vehicles are set forth or referenced below in pertinent part:
   
   "Junk vehicle" means any of the following:
   
   
   (a) A vehicle which is incapable of operation or use upon a highway and which has no resale value except as a source of parts or scrap.
   (b) A vehicle for which an insurance company has taken possession of or title to if the estimated cost of repairing the vehicle exceeds its fair market value. [WI ST § 340.01(25j)]
   
   
   "Salvage vehicle" means a vehicle less than 7 years old that is not precluded from subsequent registration and titling and which is damaged by collision or other occurrence to the extent that the estimated or actual cost, whichever is greater, of repairing the vehicle exceeds 70% of its fair market value. [WI ST § 340.01(55g)]
   
   WI ST § 342.06 “Application for certificate of title” provides in pertinent part that:
   
   
   (1)(hr) If the vehicle is less than 7 years old, is damaged by collision or other occurrence to the extent that the estimated or actual cost, whichever is greater, of repairing the vehicle exceeds 30% of its fair market value and was transferred to an insurer upon payment of an insurance claim, the insurer shall state that fact in the application. If the applicant knows that the vehicle had been transferred to an insurer upon payment of an insurance claim and that fact is not noted on the old certificate of title, the applicant shall state in the application that the vehicle has previously been so transferred. This paragraph does not apply to salvage vehicles.
   
   WI ST § 342.065 “Title for salvage vehicle” provides in pertinent part that:
   
   
   (1) (a) A purchaser of a salvage vehicle that is not currently titled as a salvage vehicle shall, promptly after delivery to him or her of the salvage vehicle, apply for a salvage vehicle certificate of title by submitting to the department the properly assigned certificate of title under s. 342.15(1)(c) or other evidence of ownership, the applicant's statement that the vehicle is a salvage vehicle, an application for a salvage certificate of title and the required fee.
   
   (b) The owner of a salvage vehicle that is not currently titled as a salvage vehicle shall promptly apply for a salvage vehicle certificate of title by submitting to the department the certificate of title for the vehicle or other evidence of ownership, the applicant's statement that the vehicle is a salvage vehicle, an application for a salvage certificate of title and the required fee. This paragraph does not apply to a salvage vehicle that is purchased by a salvage vehicle purchaser subject to the requirements of par. (a). [also see WI ADV § 136.02] back to top
   
   
2. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle on a Certificate of Title (aka “Clean Title”)?
   
   The insurer shall provide CarBuyerUSA with a Certificate of Title or a comparable ownership document issued by another state or jurisdiction (either endorsed over to the insurer by insured or endorsed by insurer accompanied by a power of attorney from insured to insurer), an odometer disclosure statement, a release of any liens, an ACV, and a cost of repair.
   
   CarBuyerUSA will submit these documents along with a Title Application (MV-2849) and the appropriate fee to the Division of Motor Vehicles for processing.
   
   Thereafter, the Division of Motor Vehicles shall issue a Certificate of Title in the name of the insurer.
   
   CarBuyerUSA, acting under a power of attorney for the insurer, will then sell the vehicle at auction and reassign the insurer’s Certificate of Title to the purchaser.
   
   [WI ST § 342.06] back to top
   
   
3. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle on a Certificate of Title branded with “THIS IS A SALVAGE VEHICLE” (aka “Salvage Branded”)?
   
   The insurer shall provide CarBuyerUSA with a Certificate of Title or a comparable ownership document issued by another state or jurisdiction (either endorsed over to the insurer by insured or endorsed by insurer accompanied by a power of attorney from insured to insurer), an odometer disclosure statement, a release of any liens, an ACV, and a cost of repair.
   
   CarBuyerUSA will submit these documents along with a Title Application (MV-2849) and the appropriate fee to the Division of Motor Vehicles for processing.
   
   Thereafter, the Division of Motor Vehicles shall issue a Certificate of Title branded “this is a salvage vehicle” in the name of the insurer.
   
   CarBuyerUSA, acting under a power of attorney for the insurer, will then sell the vehicle at auction and reassign the insurer’s Certificate of Title to the purchaser.
   
   [WI ST §§ 340.01(55g), 342.06, 342.065] back to top
   
   
4. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle on a Certificate of Title branded “THIS VEHICLE TRANSFERRED TO INSURER UPON PAYMENT OF CLAIM” (aka “Insurance Claim Paid Branded”)?
   
   The insurer shall provide CarBuyerUSA with a Certificate of Title or a comparable ownership document issued by another state or jurisdiction (either endorsed over to the insurer by insured or endorsed by insurer accompanied by a power of attorney from insured to insurer), an odometer disclosure statement, a release of any liens, an ACV, and a cost of repair.
   
   CarBuyerUSA will submit these documents along with a Title Application (MV-2849) and the appropriate fee to the Division of Motor Vehicles for processing.
   
   Thereafter, the Division of Motor Vehicles shall issue a Certificate of Title branded “this vehicle transferred to insurer upon payment of claim” in the name of the insurer.
   
   CarBuyerUSA, acting under a power of attorney for the insurer, will then sell the vehicle at auction and reassign the insurer’s Certificate of Title to the purchaser. back to top
   
   
5. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle as junk?
   
   The insurer shall provide CarBuyerUSA with a Certificate of Title or a comparable ownership document issued by another state or jurisdiction (either endorsed over to the insurer by insured or endorsed by insurer accompanied by a power of attorney from insured to insurer), an odometer disclosure statement, a release of any liens, an ACV, and a cost of repair.
   
   CarBuyerUSA will stamp “Junked” on the Certificate of Title and submit these documents along with the appropriate fee to the Division of Motor Vehicles for processing. If the Certificate of Title is lost or cannot otherwise be obtained, the insurer may send CarBuyerUSA, in lieu of a Certificate of Title, a letter on company letterhead certifying that the title is lost or cannot be obtained, along with the items listed above. CarBuyerUSA will transmit these documents along with a notification to the Division of Motor Vehicles that the vehicle has been totaled by the insurer, the title has been lost, and the insurer has requested that the vehicle be sold on a Bill of Sale.
   
   Thereafter, CarBuyerUSA, acting under a power of attorney for the insurer, will then sell the vehicle at auction on a Bill of Sale.
   
   [WI ST §§ 340.01(25g&j), 342.34; WI ADC § 136.02] back to top
   
   
6. What documents must an insurer provide to CarBuyerUSA in order to sell a recovered theft vehicle recovered substantially intact with no substantial damage, where title is still in the name of the insured?
   
   When a vehicle has been stolen, the insurer shall provide CarBuyerUSA with a Certificate of Title or a comparable ownership document issued by another state or jurisdiction (either endorsed over to the insurer by insured or endorsed by insurer accompanied by a power of attorney from insured to insurer), an odometer disclosure statement with last known mileage, a release of any liens, and the requested title.
   
   After receipt of these documents, CarBuyerUSA will submit these documents along with Title Application (MV–2849) and the appropriate fee to the Division of Motor Vehicles for processing.
   
   Thereafter, the Division of Motor Vehicles shall issue Certificate of Title with the requested branding in the name of the insurer. Upon receipt, CarBuyerUSA will forward this Certificate of Title to the insurer for safekeeping.
   
   If the vehicle is recovered, the Certificate of Title along with an ACV and a cost of repair will be returned to CarBuyerUSA by the insurer in order to obtain the appropriate title depending upon the year of the vehicle and the damage to the vehicle.
   
   CarBuyerUSA, acting upon a power of attorney for the insurer, will then sell the vehicle at auction and reassign the insurer’s Certificate of Title to the purchaser. back to top
   
   
7. What steps must an insurer take in Wisconsin to process an ownerretained vehicle?
   
   Pursuant to WI ST § 342.065(1)(c):
   
   If the interest of an owner in a vehicle that is titled in this state is not transferred upon payment of an insurance claim that, including any deductible amounts, exceeds 70% of the fair market value of the vehicle, any insurer of the vehicle shall, within 30 days of payment of the insurance claim, notify the department in writing of the claim payment and that the vehicle meets the statutory definition of a salvage vehicle, in the manner and form prescribed by the department.
   
   Pursuant to WI ST § 342.065(2):
   
   Upon notification from an insurer under sub. (1)(c), the department shall promptly notify the owner of the salvage vehicle that he or she is required to apply for a salvage vehicle certificate of title under sub. (1)(b).
   
   
8. What legal duties are imposed upon a lienholder following satisfaction of the lien?
   
   Pursuant to WI ST § 342.22(1)(2):
   
   
   (1) Within one month or within 10 days following written demand by the debtor after there is no outstanding obligation and no commitment to make advances, incur obligations or otherwise give value, secured by the security interest in a vehicle under any security agreement between the owner and the secured party, the secured party shall execute and deliver to the owner, as the department prescribes, a release of the security interest in the form and manner prescribed by the department and a notice to the owner stating in no less than 10-point boldface type the owner's obligation under sub.
   
   (2). If the secured party fails to execute and deliver the release and notice of the owner's obligation as required by this subsection, the secured party is liable to the owner for $25 and for any loss caused to the owner by the failure.
   
   (2) The owner, other than a dealer holding the vehicle for resale, upon receipt of the release and notice of obligation shall promptly cause the certificate and release to be mailed or delivered to the department, which shall release the secured party's rights on the certificate and issue a new certificate. back to top
   
   
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