KRS 186A.520: Salvage titles -- Conditions for issuance -- Operation of vehicle with

salvage title.

(1) Except as provided in KRS 186A.555, a salvage title shall be obtained by the owner

of a motor vehicle that meets the following definition of a salvage vehicle:

(a) 1. A vehicle that has been wrecked, destroyed, or damaged, to the extent

that the total estimated or actual cost of parts and labor to rebuild or

reconstruct the vehicle to its preaccident condition and for legal

operation on the roads or highways, not including the cost of parts and

labor to reinstall a deployed airbag system, exceeds seventy -five percent

(75%) of the retail value of the vehicle, as prescribed by a nationally

accepted used car valuation guide or tool identifi ed under KRS 304.20 -

110.

2. The value of repair parts for purposes of this paragraph shall be

determined by using the current published retail cost of the parts equal

in kind and quality to the parts to be replaced or the actual retail cost of

the repair parts used in repair.

3. The labor costs of repairs for purposes of this paragraph shall be

computed by using the hourly labor rate and time allocations which are

reasonable and customary in the automobile repair industry in the

community where the repairs are performed.

4. Airbag reinstallation costs which are excluded from the seventy -five

percent (75%) computation as set forth in subparagraph 1. of this

paragraph shall be included by an insurer in the computation of the total

physical damage estimate acco rding to the terms and conditions of

individual policies, provided that the total costs payable by an insurer do

not exceed the total retail value of the vehicle; or

(b) A vehicle that is exempt from certificate of title surrender under KRS

186A.295(3).

(2) The owner or an authorized agent of a motor vehicle that meets the definition of a

salvage vehicle as set forth in subsection (1) of this section shall, within fifteen (15)

days from the receipt of all necessary paperwork required by this chapter, submit an

application to the county clerk, on a form prescribed by the Department of Vehicle

Regulation, for a salvage title, accompanied by a properly endorsed certificate of

title and any lien satisfactions, if any appear, as may be required.

(3) The county clerk shall retain a copy of each salvage title application received and

shall forward the original and its supporting documents to the Department of

Vehicle Regulation in a manner similar to that for handling of an application for a

title.

(4) The county clerk shall rely on the information provided by the owner or authorized

agent, including a county of residence designation, on:

(a) Any approved, notarized state form utilized in lien titling or the title transfer

process signed by the owner or authorized agent; and

(b) Any document submitted during the transfer of a salvage vehicle from an

owner to an insurer.

Reliance on the foregoing by the county clerk shall relieve the office of the county

clerk from liability to any third party claiming failure to comply with this section.

(5) The Department of Vehicle Regulation shall process the salvage title application in

a manner similar to that used in processing a title application and the salvage title

shall be delivered in a like manner of a title. Salvage titles shall be construed as

proof of ownership of a vehicle in a state as to be unusable upon the highways of

the Commonwealth.

(6) A vehicle shall not be issued a registration for highway use as long as a salvage title

is in force. The only time a vehicle with a salvage title may be operated upon the

highways of the Commonwealth is when it is in route to or from an inspection by

the certified inspector prior to obtaining a certificate of title after having been

rebuilt as per KRS 186.115.

(7) Notwithstanding the provisions of KRS 369.103, when a salvage vehicle is

transferred from an owner to an insurer, the following shall be exempted from the

requirements of notarization, including exemption from the notarization of

electronic signature requirements of KRS Chapter 423:

(a) The transfer of ownership on the certificate of title;

(b) Any power of attorney required in connection with the transfer of ownership

to the insurer;

(c) Any required odometer disclosure statement;

(d) The application for a salvage certificate of title; and

(e) The transfer of ownership on the salvage certificate of title issued.

(8) Subsections (2) to (5) of this section shall not apply to applications for salvage title

using the electronic title application and registration s ystem established under KRS

186A.017.