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January 20, 2006
HURRICANE KATRINA VEHICLES
HB
11 - ACT 42 2005 1st Extraordinary Session
Effective December 6, 2005,
any insurance settlement made on a vehicle declared as a
“total loss” except an antique vehicle or a vehicle with a
gross vehicle weight in excess of twenty thousand pounds,
which has received damage to the power train, computer or
electrical system by flooding as a result of a
gubernatorial declared disaster or emergency, will be
issued a Certificate of Destruction.
The
insurance company agent, representative or the owner of
the vehicle must submit an application for a Certificate
of Destruction and turn in the existing title,
registration, with the required fee, within 30 days of the
settlement.
No
person can sell, exchange, donate or otherwise transfer
any interest in any vehicle for which a Certificate of
Destruction has been issued, without execution of a
disclosure statement signed by both parties at the time of
sale, exchange, donation or transfer. Failure to execute
this disclosure will give the recipient the right to have
the sale rescinded.
Once
the Certificate of Destruction is issued, the vehicle
cannot be sold at retail (to the general public), however,
the Certificate of Destruction can be transferred a total
of two times to a licensed dealer and/or dismantler, after
which time the vehicle must be dismantled or destroyed.
No title of any kind shall be issued to a vehicle once a
Certificate of Destruction has been issued.
Prior to December 6, 2005,
any vehicle that was declared and branded a
Salvage/Katrina (ST/SK) and was later determined the
vehicle was not severely damaged or flooded, the
“CONDITION OF VEHICLE AFTER HURRICANE KATRINA DISCLOSURE
STATEMENT” form must be completed and signed by the
insurance company and registered owner to remove the
flag. However, if the insurance company or registered
owner does not wish to put the Salvage/Katrina (ST/SK)
vehicle back on the road, they can request the vehicle to
be crushed by completing a Crushed Vehicle application and
submit the required documents. |
