Virginia Code 46.2-1602.3: Exception; vehicles sold for recycling parts, dismantling, demolishing, or utilizing for scrap
A. Notwithstanding any provision of this chapter to the contrary, an insurance company, or authorized agent of an insurance company, may obtain a nonrepairable certificate for a vehicle titled in the Commonwealth and acquired by the insurance company through the claims process without first obtaining a certificate of title or a salvage certificate, provided that the insurance company or authorized agent of the insurance company electronically files the following with the Department in a manner prescribed by the Commissioner;
Terms Used In Virginia Code 46.2-1602.3
- Demolisher: means any person whose business is to crush, flatten, bale, shred, log, or otherwise reduce a vehicle to a state where it can no longer be considered a vehicle. See Virginia Code 46.2-1600
- Lien: A claim against real or personal property in satisfaction of a debt.
- Nonrepairable certificate: means a document of ownership issued by the Department for any nonrepairable vehicle upon surrender or cancellation of the vehicle's title and registration or salvage certificate. See Virginia Code 46.2-1600
- Nonrepairable vehicle: means any vehicle that has been determined by its insurer or owner to have no value except for use as parts and scrap metal or for which a nonrepairable certificate has been issued or applied for. See Virginia Code 46.2-1600
- Process: includes subpoenas, the summons and complaint in a civil action, and process in statutory actions. See Virginia Code 1-237
- Salvage certificate: means a document of ownership issued by the Department for any salvage vehicle upon surrender or cancellation of the vehicle's title and registration. See Virginia Code 46.2-1600
- Salvage dealer: means any person who acquires any vehicle for the purpose of reselling any parts thereof or who acquires and sells any salvage vehicle as a unit except as permitted by subdivision B 2 of § Virginia Code 46.2-1600
- Salvage pool: means any person providing a storage service for salvage vehicles or nonrepairable vehicles who either displays the vehicles for resale or solicits bids for the sale of salvage vehicles or nonrepairable vehicles, but this definition shall not apply to an insurance company that stores and displays fewer than 100 salvage vehicles and nonrepairable vehicles in one location; however, any two or more insurance companies who display salvage and nonrepairable vehicles for resale, using the same facilities, shall be considered a salvage pool. See Virginia Code 46.2-1600
- Scrap metal processor: means any person who acquires one or more whole vehicles to process into scrap for remelting purposes who, from a fixed location, utilizes machinery and equipment for processing and manufacturing ferrous and nonferrous metallic scrap into prepared grades, and whose principal product is metallic scrap. See Virginia Code 46.2-1600
- Vehicle: means every device in, on or by which any person or property is or may be transported or drawn on a highway, except personal delivery devices and devices moved by human power or used exclusively on stationary rails or tracks. See Virginia Code 46.2-100
1. The insurance company’s information, including name, address, federal identification number, and insurance company code number;
2. The claim number and claim payment date;
3. The vehicle information, including year, make, model, and vehicle identification number; and
4. A certification that:
a. The insurance company (i) has acquired the vehicle through the claims process; (ii) is unable to obtain the assigned title or salvage certificate for the vehicle from the insured; and (iii) has determined the vehicle to be a nonrepairable vehicle;
b. Any lien recorded on this title at the time the insurance company acquired the vehicle has been satisfied as a result of the claims process and released by the lien holder; and
c. The insurance company, or authorized agent of the insurance company, is selling the vehicle, either directly or through a salvage pool, to a demolisher, salvage dealer, or scrap metal processor solely for the purpose of recycling parts, dismantling, demolishing, or utilizing for scrap.
B. Upon receipt of the information required in subsection A, the Department shall update its records in accordance with subsection D of § 46.2-1603.2 and electronically deliver to the insurance company, or the authorized agent of the insurance company who filed the information in subsection A, if any, a nonrepairable certificate for the vehicle.
C. The insurance company, or authorized agent of the insurance company, shall provide the purchaser of the vehicle with the nonrepairable certificate and a bill of sale for each vehicle processed through subsection A. Delivery of such nonrepairable certificate and bill of sale to the purchaser may be through electronic means.
D. Each purchaser of a vehicle for which a nonrepairable certificate has been issued pursuant to subsection A shall comply with the notification requirements of subsection B of § 46.2-1608.2 and all applicable recordkeeping requirements of this chapter.