ALABAMA DEPARTMENT OF REVENUE

ADMINISTRATIVE CODE

CHAPTER 810-5-41 SALVAGE AND AUTOMOTIVE VEHICLES

TABLE OF CONTENTS

810-5-41-.01 Salvage - Plate Removed, Number Inscribed On Salvage; Number Furnished On Application For Alabama Vehicle Identification Number, And Number Required On All Bills Of Sale Or Invoices Upon Sale Of Salvage

810-5-41-.02 Salvage - Owner's Responsibility On Insurance Settlement

810-5-41-.03 Salvage - Responsibility Of Insurance Company On Total Loss Payment

810-5-41-.04 Salvage - Defining Cost On Total Loss (Repealed 11/22/96)

810-5-41-.05 Salvage Guidelines For Determining Fair Retail Value For Total Loss

810-5-41-.06 Salvage - Salvage Or Junk Vehicles Brought Into Alabama

810-5-41-.07 Salvage - Motorcycles, Semitrailers, Etc. Procedure On Vehicles That Do Not Have Vehicle Identification Number Plates To Be Removed When Total Loss Occurs

810-5-41-.01 Salvage - Plate Removed, Number Inscribed On Salvage; Number Furnished On Application For Alabama Vehicle Identification Number, And Number Required On All Bills Of Sale Or Invoices Upon Sale Of Salvage. Reference: Code of Ala. 1975, 32-8-1 through 32-8-87, as amended.

(1) When the manufacturer's identification number plate, or Alabama replacement number plate is removed from a motor vehicle under requirements of Section 17 or 41 of Act 765, the owner or insurance company agent removing this plate shall have the vehicle identification number permanently inscribed on the firewall or if firewall is not accessible, on another permanent part of the chassis in the manner that will be easily accessible and legible for inspection by law enforcement officers and agents of the Revenue Department.

(2) The vehicle identification number inscribed on the vehicle as required in (1) above shall be provided by an applicant on an application for an Alabama assigned vehicle identification number (form MVT 26-3) in instances where the vehicle is rebuilt, repaired, or restored for use on the streets and highways of Alabama and which is required to be titled and registered as a motor vehicle in this state. After installation of an Alabama assigned vehicle identification number plate (original number with "AL" prefix) issued by the Revenue Department, the owner of a rebuilt, repaired, or restored vehicle may then make application for Alabama certificate of title using the new Alabama assigned vehicle identification number.

(3) The original manufacturer's vehicle identification number or Alabama replacement number shall be shown on any bill of sale or invoice transferring ownership of a 1975 model or subsequent year model motor vehicle which has been dismantled, scrapped, destroyed, or has become salvage.

Author

Statutory Authority: Code of Ala. 1975, 32-8-3(a)(2).

History:

810-5-41-.02 Salvage - Owner's Responsibility On Insurance Settlement. Reference: Code of Ala. 1975, 32-8-1 through 32-8-87, as amended. When an insurance company or other person makes a settlement with an owner for the total loss of a motor vehicle that requires the certificate of title, the manufacturer's identification number plate, and the license plate of such vehicle to be mailed or delivered to the Department, the delivery of these items by the owner to the insurance company will fulfill the owners requirements to the Department.

Author

Statutory Authority: Code of Ala. 1975, 32-8-3(a)(2).

History:

810-5-41-.03 Salvage - Responsibility Of Insurance Company On Total Loss Payment. Reference: Code of Ala. 1975, 32-8-1 through 32-8-87, as amended. When a vehicle is determined to be a total loss because of the insurer paying to any person seventy-five percent (75%) or more of the cost, at the time of loss, of replacing the wrecked or damaged vehicle with one of like kind and quality, it will be the responsibility of the insurance company to complete form MVT 41-1 (Report of Total Loss Settlement), secure the certificate of title, vehicle identification number plate, license plate, and within seventy-two (72) hours after receiving them, forward them to the Department for processing. This rule applies regardless of whether the insurer or owner retains possession of the salvage.

Author

Statutory Authority: Code of Ala. 1975, 32-8-3(a)(2).

History:

810-5-41-.04 Salvage - Defining Cost On Total Loss (Repealed 11/22/96)

Author

Statutory Authority: Code of Ala. 1975, 32-8-3(a)(2).

History: Repealed: Filed October 18, 1996; effective November 22, 1996.

810-5-41-.05 Salvage Guidelines For Determining Fair Retail Value For Total Loss

(1) When a monetary settlement is paid on a damaged vehicle and the damage to the vehicle is greater than or equal to 75 percent of the fair retail value of the vehicle prior to the damage, the vehicle shall be considered to be a total loss. For the purpose of determining the fair retail value of a total loss vehicle, at time of loss, information shall be obtained from a current edition, including automated data base, of a nationally recognized compilation of retail values, such as, but not limited to the National Automobile Dealers Association's Used Car Guide, Southeastern Edition (NADA Retail Price Manual) and Red Book, provided the publication or automated data base presents a fair and representative retail value of the vehicle within the state of Alabama. "Retail value" shall mean the cost to purchase at retail a comparable vehicle of like kind and quality, made by the same manufacturer, of the same or newer model year, of a similar body type with similar options and mileage as the insured vehicle, including taxes and fees incident to transfer of ownership of a comparable vehicle.

(2) Deductions from the monetary settlement of the kind commonly referred to as "dealer preparation" charges or making the vehicle "dealer ready," are prohibited. The settlement payment shall not include any deduction for normal wear and tear involving paint, interior, glass, tires or the like. Downward condition adjustments shall be permitted only if the vehicle has specific conditions other than ordinary wear and tear which materially affect its fail market value or useful life such condition adjustment shall be discernable, measurable, itemized, and specified as to dollar amount and shall be fully documented in the claim file and based upon verifiable supporting data.

(3) As an alternative to paying a monetary settlement, the insurer may elect to provide a comparable replacement vehicle that is one of like kind and quality, made by the same manufacturer, of the same or newer model year, of a similar body type, with similar options and mileage as the insured vehicle and including taxes and fees.

Author Susan E. Kennedy

Statutory Authority: Code of Ala. 1975, 32-8-1 through 32-8-88, as amended.

History: Amended: Filed October 18, 1996; effective November 22, 1996. Amended: Filed May 3, 2000; effective June 7, 2000.

810-5-41-.06 Salvage - Salvage Or Junk Vehicles Brought Into Alabama. Reference: Code of Ala. 1975, 32-8-1 through 32-8-87, as amended. The Department shall require the owner or a person having in his possession a vehicle determined to be salvage or junk, as defined in 17 and in 41 of Act 765, which is brought into the State of Alabama from another state or country, that does not require the removal of the manufacturer's vehicle identification number plate and registration license plate, to remove and mail or deliver them within seventy-two (72) hours, from time of entry into Alabama, to the Department for processing.

Author

Statutory Authority: Code of Ala. 1975, 32-8-3(a)(2).

History:

810-5-41-.07 Salvage - Motorcycles, Semitrailers, etc. Procedure On Vehicles That Do Not Have Vehicle Identification Number Plates To Be Removed When Total Loss Occurs. Reference: Code of Ala. 1975, 32-8-1 through 32-8-87, as amended.

(1) When salvage or total loss occurs on motor vehicles that do not have vehicle identification number plates installed by their manufacturer and the vehicle identification number is die stamped into the frame or chassis by the manufacturer, the letter "T" shall be die stamped in the front of the first character of the vehicle identification number and the letter "L" shall be die stamped behind the last character of the vehicle identification number.

(2) This procedure will be acceptable to meet the requirements for removing the vehicle identification number plate since it will identify the vehicle as being subject to a total loss and will prevent the destruction of a frame to a motorcycle or defacing a vehicle that may be rebuilt.

Author

Statutory Authority: Code of Ala. 1975, 32-8-3(a)(2).

History: