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Arkansas

Title Reference Guide

The IAA Vehicle Alternate Method of Disposal Guide is a proprietary document prepared solely for internal use by

Insurance Auto Auctions, Inc., its subsidiaries and affiliated entities (“IAA”). No part of this document is to be

photocopied, reproduced, stored in a retrieval system, transmitted electronically, or disclosed to a third party without

prior written consent of Diversified Services Administration or IAA Executive Management.

© 2013. Insurance Auto Auctions, Inc.

I N S U R A N C E A U T O A U C T I O N S

Last Updated 022014

Please direct any questions, comments, or corrections to IAA’s Title Solutions Team.

[email protected] Toll Free - 888-MY-TITLE (888-698-4853)


Table of Contents

Contact Information ................................................................................................................................................ 3 Title and Disposal Information ............................................................................................................................... 4

Standard Title Processing ................................................................................................................................... 4 OMV Title Fees .................................................................................................................................................. 4 Duplicate Title .................................................................................................................................................... 4

Additional Information ........................................................................................................................................... 5 Deceased Owner Requirements .......................................................................................................................... 5

Repossessed Vehicle ........................................................................................................................................... 5 Name Changes .................................................................................................................................................... 5 Owner Retain ...................................................................................................................................................... 5 Un-Recovered Theft............................................................................................................................................ 5

Alternate Disposal ............................................................................................................................................... 6 State Guidelines ...................................................................................................................................................... 6

Title Requirements by Vehicle Type .................................................................................................................. 6 Title Branding Guidelines ................................................................................................................................... 7 Determining the Correct Title Type .................................................................................................................... 8

Frequently Asked Questions ................................................................................................................................... 9 What type of PoA is required if the title is not signed? ...................................................................................... 9

What is required to correct a mistake that is made by the owner on the back of the title? ................................. 9 Is a copy of the written estimate needed to process the title? ............................................................................. 9

If an owner’s full name is listed, does he/she need to sign as listed on the face of the title? ............................. 9 Sample Documents ........................................................................................................................................... 10 Arkansas Title (Front) ....................................................................................................................................... 10

........................................................................................................................................................................... 10 Arkansas Title (Back) ....................................................................................................................................... 11

Arkansas Secure Power of Attorney ................................................................................................................. 12

Please note - This document is intended to cover most requirements for obtaining a negotiable, lien-free title. It

is not intended to replace motor vehicle department regulations or rulings. If you have title questions please

contact IAA’s Title Solutions Department ([email protected]).

mailto:[email protected]

I N S U R A N C E A U T O A U C T I O N S Last Updated 022014




Contact Information

IAA Website: http://www.iaai.com

Title Questions: IAA – Title Solutions

7835 Woodland DriveSuite 200Indianapolis, IN 46278Toll Free: 888-698-4853

FAX: 855-584-5198

[email protected]

Arkansas IAA Branch:

Little Rock

4900 S Kerr Rd

Scott, AR 72142

Phone: 501-961-2886

Fax: 501-961-1805

Auction: Wednesdays 9:30AM CT

Office of Motor Vehicle:

Ragland Building 1900 W 7th St, Ste 1100

Little Rock, AR 72201

Mailing Address

Department of Finance and Administration

Office of Motor Vehicles, PO Box 1272

Records Unit, Room 1100

Little Rock, AR 72203

Phone: 501-682-4692

Fax: 501-682-4756

Arkansas DMV Forms

http://www.iaai.com/

mailto:[email protected]

http://www.dfa.arkansas.gov/offices/motorVehicle/Pages/Forms.aspx


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Title and Disposal Information

Standard Title Processing

IAA will apply for the appropriate title in the insurance company’s name. In order to initiate this process the

vehicle provider must supply the following documentation:

Properly Executed Title – If owner held title at time of loss, then the provider must send a title that has

been properly executed by the owner or the title including the correctly executed Power of Attorney

(PoA.) If the lienholder possessed the title at the time of the loss, then the provider must send the

unsigned title with a lien release if applicable or lienholder signed off on title, and a Secure Power of

Attorney signed by the owner.

Lien Release (if applicable) – Lien to be satisfied and dated on the face, or include separate notarized

lien termination statement on lienholder letterhead with a vehicle description and owner’s name(s).

Odometer Disclosure – Odometer disclosure is required for vehicles less than seven (7) model years.

This can be accomplished on the title or with a separate odometer statement, signed by the owner.

Mileage should be stated with a verified reading and should not be an estimate or guess.

If IAA is not processing the title, please attach the properly executed sale document and any additional

required forms as outlined above to a coversheet with your selling instructions noted. Forward these

documents to the appropriate IAA Branch.

OMV Title Fees

Please contact your local IAA Branch or OMV for up-to-date fees.

Salvage title fee: $10.00

Duplicate title fee: $10.00

Duplicate Title

With the insured’s cooperation, IAA can apply for a duplicate title.

IAA will need:

Two (2) Arkansas Secure PoA’s or two (2) generic, notarized PoAs

TIMA Form 2 and lien release if applicable

Copy of the Lien Release is acceptable

Title mistakes can be costly and significantly delay the processing and sale of salvage vehicles. Catching

potential errors before the title paperwork goes to auction prevents title problems that delay a vehicle’s

sale by weeks or even months.


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Additional Information

Deceased Owner Requirements

Joint Ownership – Copy of Death Certificate / Spouse signs title

Single Named Title – Surviving spouse signs title / Copy of Death Certificate

Only one named owner on title or court appointed executor – Letters of Testamentary or Letters of

Administrator. Executor signs as seller on title

Repossessed Vehicle

Lienholder signs as owner

Lien release – original signature on title or financial institute letterhead, non-notarized

VIN and Vehicle Year / Make / Model

Affidavit of Repossession

Plates remain with debtor

Name Changes

If the insured’s name is different than the name that appears on the title (i.e. different last name or

nickname instead of first name), a copy of the marriage license, divorce decree or court document

stating legal name has changed may be required in addition to the signed title. Please contact an

Arkansas branch if questions arise.

If name on title is completely different, this could be a situation where the owner purchased the vehicle

from someone and did not title it properly. In this scenario the owner will be required to pay sales taxes

and have the vehicle titled properly before it can be sold. Contact your local IAA branch or Title

Solutions for assistance in resolving these situations. Title Solutions requires written approval via email

or fax from provider before providing assistance.

Owner Retain

If the vehicle has been declared a total loss by the provider and deemed repairable, the owner may retain

the vehicle but must obtain a salvage title.

By law the owner must provide proof of salvage before payment can be issued or must relinquish title

to insurance company to apply for salvage title on their behalf.

Un-Recovered Theft

Insurance company is required to apply for the salvage title. However clear title applicants must have

an Arkansas address. Arkansas will mail the title to address shown as "special mailing address,"

however, the applicant section still must have an Arkansas address. When insurance company does not

have an office in Arkansas, IAA Little Rock address can be used and the special mailing address section

can be IAA’s address.


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Alternate Disposal

Total Loss Settlement Title -- >/ 30 days post settlement. Requirements follow –

o Salvage or Parts Only Title

o Total Loss Settlement Title surrendered

o VIN Inquiry

o Certified Letters – Two (2) attempts last known LH / owner

o Parts Only – Declaration of Damage required

o Sales Tax not applicable to provider on settlement transactions

o Online DMV Screen – “Previous Title Info” = P

o Proceeds = $150.00 if IAA sends letters

Abandonment - If the Provider is unable to obtain a negotiable title, they can abandon the vehicle to

IAA via a written notification on Provider letterhead releasing their interest, and payment of $50

disposal fee. IAA will file all necessary paperwork to sell the vehicle on an Affidavit of Abandonment.

Bonded title - Written notification on provider letterhead if the ACV is greater than $8,000. Provider

will need to cover the alternate disposal fee of $250.00. Proceeds will go to the provider.

State Guidelines

Title Requirements by Vehicle Type

Vehicle Type Titled Note

Passenger vehicles Yes 1949 or newer model year

ATVs Yes

Boats No Sell on bill of sale

Commercial trucks (i.e. tractor trailers) Yes

Farm Equipment No Sell on bill of sale

Manufactured and mobile homes Yes

Mopeds No Sell on bill of sale

Motor Homes and RV’s Yes

Motorcycles Yes

Off-road vehicles Yes

Snowmobiles No Sell on bill of sale

Trailers Yes

Semi Trailers Yes


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Title Branding Guidelines

Salvage Title

Cost of Repair >/70% ACV and </ 8 years

Salvage title required on ANY flood vehicle, regardless of CoR / damage amount,

when/if water level reached was at/above vehicle dashboard

Exemptions –

Motorcycles, motor driven cycles, and trucks with un-laden weight >/10,000lbs.

Any motor vehicle > seven (7) model years prior to calendar year of total loss

occurrence as calculated by subtracting eight (8) from current calendar year

Parts Only – Issued if title is surrendered, and titled owner determines vehicle has no

resale value other than as source for parts or scrap

Salvage Repairable – A Salvage-Repairable title is for vehicles that have been declared

a total loss but are repairable. This type of title requires at least one sub-brand.

Collision

Theft

Fire

Vandalism

Salt

Flood

Other

Affidavit of Reconstruction required for repairable salvage vehicles

Clear Title

Any motor vehicle > seven (7) model years prior to calendar year of total loss

occurrence as calculated by subtracting eight (8) from current calendar year are exempt

from branding


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Determining Title Type

Vehicle declared a

total loss Is vehicle a boat,

snowmobile, or

moped?

Not titled in

Arkansas

Title may

remain clear

Salvage

Title

Required

Is vehicle older

than 1949

Is cost of repair

>/ 70% ACV?

Is this a flood

claim?

Y

Y

N

Y

N

N

Y

Was water

level above level of

dashboard?

Y

Was vehicle >7

model years prior

to calendar loss

year?

Y N


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Frequently Asked Questions

What type of PoA is required if the title is not signed?

The state of Arkansas accepts a secure power of attorney form (PoA- TIMA Form 2) only, for all title

processing.

What is required to correct a mistake that is made by the owner on the back of the title?

Notarized Affidavit of Correction (copy accepted). Contact branch with specific questions.

Is a copy of the written estimate needed to process the title?

A damage appraisal is not required to process a title; however the IAA branch needs an actual cash value and an

estimated cost of repair.

If an owner’s full name is listed, does he/she need to sign as listed on the face of the title?

The signature should match exactly as the name is listed on the face of the title.

Example: John P. Doe is signature for named title of John P Doe. Note that this is NOT signed John Doe or J.

Doe or Mr. Doe.


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Sample Documents

Arkansas Title (Front)


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Arkansas Title (Back)


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Arkansas Secure Power of Attorney


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Glossary of Terms

Term Definition

Affidavit of Correction

A notarized form that can correct certain errors made by an owner on the

title

Appraisal Written estimate detailing damage and replacement costs for a vehicle. Also

known as an Estimate of Repair

Date of Loss Date of event that resulted in total loss

Duplicate Title Replacement title obtained through the state DMV

Electronic Title Electronic exchange format that replaces paper title

Exceeds Mechanical Limits IEML)

Miles driven exceeds odometer capacity. For example, odometers on older

vehicles capped at 99,999 miles. Newer models cap at 999,999

Lien Release A written, original statement on business or personal letterhead, or

signature on a title that releases interest in the vehicle by the lienholder so

that the vehicle may be sold. It is important to note that the lien release

only releases interest in the vehicle; it does not mean that the lien was

satisfied. In most cases the lienholder will release interest in a totaled

vehicle so the insurance company will release proceeds to lienholder. In

most cases, where the settlement does not cover the balance of the loan

(upside-down) the owner is still liable to the lienholder for the balance.

Not Actual Mileage (NAM)

Option indicating mileage on odometer is not a true representation of

vehicle mileage. Indication of replacement of engine control unit (ECU) or

related mechanical malfunction

Odometer Disclosure Requirement to disclose vehicle mileage either on title or separate

disclosure statement. Requirement linked to vehicle model years and

varies by state

Owner Named title holder(s) indicating legal owner of vehicle

Owner Retained Vehicle ownership maintained by owner for any vehicle that is deemed total

loss by insurance company. Salvage title requirements vary by state

Power of Attorney (PoA)

A legal document signed by an owner that allows another entity (i.e. SPE)

to sign paperwork, such as title applications, on owner’s behalf. Secured

Power of Attorney includes an odometer disclosure and is required by

certain states. SPoA’s are printed as a specific form by the respective state

and, therefore, may not be emailed or faxed


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Properly Executed Title

Title that has been accurately signed by named owner(s), showing no

outstanding liens, and has been notarized, if required

Provider The insurance company, charity, or individual selling vehicle through IAA

Repair Estimate Written itemized detail of vehicle damage and costs for repair / replacement

Sale Document Written documentation of vehicle sale. May include Bill of Sale, MV907A,

clear title, salvage title, certificate of destruction, junk / scrap title, etc

Salvage Title Title issued to document total loss status and nature of loss. State

requirements for salvage title vary by state and may include inspection

and/or repair requirements

Title Problems Refers to titles that are missing signatures, incorrectly signed, not signed by

all named owner(s) and/or contain errors

Title Solutions IAA service department focused on providing title processing solutions for

most challenging claims

Total Loss Status level given for any vehicle deemed uneconomical to repair

Un-Recovered Theft File status indicating a vehicle has been stolen and not recovered


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Index

A

Alternate disposal ............................................................................... 6 ATV ..................................................................................................... 6

B

Boat .................................................................................................... 6 Boats ................................................................................................... 6

C

Commercial truck ............................................................................... 6

D

Deceased owner ................................................................................. 5 Duplicate title ..................................................................................... 4 Duplicate Title .................................................................................... 4

F

Farm equipment ................................................................................. 6 Farm Equipment ................................................................................. 6

L

Lien release ......................................................................................... 4

M

Manufactured and mobile homes ...................................................... 6 Moped ................................................................................................ 6 Mopeds .............................................................................................. 6 Motorcycle ......................................................................................... 6 Motorcycles ........................................................................................ 6

N

Name changes .................................................................................... 5

O

Odometer disclosure .......................................................................... 4

P

PoA ..................................................................................................... 9 Power of attorney (PoA) ........................................................... 4, 9, 12

S

Secure power of attorney (SPOA) ................................................ 4, 12

T

Title fees ............................................................................................. 4 Trailers................................................................................................ 6


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