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Commissioner’s Bulletin # B-0014-15

June 26, 2015

To: All Property and Casualty Insurance Companies, Corporations, Exchanges, Mutuals, County Mutuals, Reciprocals, Associations, and Lloyds Insurers Writing Property and Casualty Insurance in the State of Texas and to Other Agents and Representatives and the Public Generally

Re: Flood Damaged Vehicles

As a result of the recent heavy rains and flooding across Texas, the Texas Department of Insurance issues this bulletin to remind insurers of their obligations regarding losses to motor vehicles due to flood damage. The titling of flood-damaged vehicles must comply with the Texas Transportation Code.

Under Transportation Code §501.1001(a), an insurance company licensed to conduct business in Texas that acquires, through payment of a claim, ownership, or possession of a salvage motor vehicle or non-repairable motor vehicle covered by a Texas certificate of title or a manufacturer's certificate of origin, must surrender a properly assigned title or manufacturer's certificate of origin to the Texas Department of Motor Vehicles. Transportation Code §501.1001(c) prohibits an insurer from selling a motor vehicle to which §501.1001 applies unless the Texas Department of Motor Vehicles has issued a salvage vehicle title or a non-repairable vehicle title for the motor vehicle, or a comparable ownership document has been issued by another state or jurisdiction for the motor vehicle. Transportation Code §501.09112(d) requires that a salvage vehicle title or a salvage record of title for a vehicle that is a salvage motor vehicle because of damage caused exclusively by flood must bear a notation that the Texas Department of Motor Vehicles considers appropriate.

TDI urges insurers to take measures to ensure that Vehicle Identification Numbers and other pertinent information are accurate. You can find further information regarding salvage vehicle titles and requirements at

Direct questions regarding this bulletin to Mark Worman, Manager, Personal and Commercial Lines Office, by email at, or you may call Mr. Worman at (512) 676-6740.

Marilyn Hamilton, Director
Personal and Commercial Lines
Texas Department of Insurance

For more information, contact:

Last updated: 7/6/2015