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An Act
ENROLLED SENATE
BILL NO. 1920 By: Reinhardt of the Senate
and
Tedford of the House
An Act relating to motor vehicle insurance; amending
47 O.S. 2021, Section 1111, as last amended by
Section 42, Chapter 171, O.S.L. 2025 (47 O.S. Supp.
2025, Section 1111), which relates to salvage;
increasing certain percent damage required for title
return; updating statutory language; updating
statutory reference; and providing an effective date.
SUBJECT: Motor vehicle insurance
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 47 O.S. 2021, Section 1111, as
last amended by Section 42, Chapter 171, O.S.L. 2025 (47 O.S. Supp.
2025, Section 1111), is amended to read as follows:
Section 1111. A. As used in this section:
1. “Loss” means the cost, in dollars, to repair or replace a
vehicle which has been damaged by collision or other occurrence.
The amount paid by an insurer to a holder of the certificate of
title for repair of a damaged vehicle shall be prima facie evidence
of the amount of the loss. The amount paid by an insurer to a
holder of the certificate of title for replacement of a damaged
vehicle less the resale value of the damaged vehicle shall be prima
facie evidence of the amount of the loss;
ENR. S. B. NO. 1920 Page 2
2. “Fair market value” means the value of a vehicle as listed
in the current National Auto Automobile Dealers Association
guidebook or other similar guidebook or the actual cash value,
whichever is greater;
3. “Resale value” means the amount, in dollars, paid to the
holder of a certificate of title by a willing buyer for a vehicle
damaged by collision or other occurrence or recovered from theft;
4. “Total loss” means a loss which is equal to the fair market
value of the vehicle immediately prior to the damage to or theft of
the vehicle; and
5. “Vehicle” means a vehicle, as defined in paragraph 40 41 of
Section 1102 of this title, manufactured within the last ten (10)
model years.
B. Any insurance company that pays a total loss on a claim for
any vehicle including, but not limited to, a flood-damaged vehicle
or recovered-theft vehicle, any junk dealer who receives a motor
vehicle which is to be used for junk or for parts, or any other
person permanently dismantling or junking a vehicle shall receive
the certificate of title from the current holder of the certificate
of title, shall detach the license plate from the vehicle, and shall
return the license plate and the certificate of title to Service
Oklahoma or a licensed operator within thirty (30) days from receipt
of the certificate, or insurance companies may provide alternate
documentation within thirty (30) days pursuant to subsection P of
Section 1105 of this title. Service Oklahoma shall cancel the
certificate of title to the vehicle used for junk or parts and shall
preserve the vehicle identification numbers (VINs) on the
certificate of title in the computer files for at least five (5)
years. No certificate of title may be reissued on a junked vehicle
as defined in Section 1105 of this title, unless reissued pursuant
to paragraph 3 of subsection C of this section. Service Oklahoma
shall transfer ownership of a stolen vehicle, not recovered from
theft at the time of transfer, by salvage or unrecovered-theft title
to the insurer. Service Oklahoma shall transfer ownership of a
vehicle damaged by flooding or other occurrence to the insurer by an
original title, salvage title, or junked title, as may be
appropriate, based upon an estimate of the amount of loss submitted
ENR. S. B. NO. 1920 Page 3
by the insurer. All license plates surrendered to Service Oklahoma
shall be destroyed.
C. 1. If an insurance company pays a claim for a loss which is
less than a total loss but the cost of repairing the vehicle for
safe operation on the highway exceeds sixty percent (60%) seventy
percent (70%) of the fair market value of the vehicle, or if any
vehicle not insured is damaged to the extent that the cost of repair
for safe operation on the highway exceeds sixty percent (60%)
seventy percent (70%) of the fair market value of the vehicle, any
holder of the certificate of title for the vehicle shall return the
certificate of title to Service Oklahoma or a licensed operator
within thirty (30) days from receipt of payment for the loss.
2. Upon receipt of the certificate, Service Oklahoma or the
licensed operator shall issue a salvage title for the vehicle. The
title for any vehicle damaged by flooding shall be stamped with the
words “Flood Damaged”, and for any such vehicle which was recovered
from a theft, the salvage title or rebuilt title shall be stamped
with the words “Recovered Theft”. A licensed dealer subject to the
provisions of the Automotive Dismantlers and Parts Recycler Act,
Section 591.1 et seq. of this title, shall not be required to pay
registration fees, excise taxes, back taxes, or penalties on a
vehicle as a prerequisite to obtaining a salvage title.
3. If the actual documented cost of repairing the vehicle for
safe operation on the highway does not exceed sixty percent (60%)
seventy percent (70%) of the fair market value of the vehicle as
defined in this section, the certificate of title shall be reissued
to the holder and the vehicle shall not be subject to inspection as
required under this section. The actual documented cost of
repairing the vehicle pursuant to this paragraph shall be certified
by the insurance company paying the loss.
D. If a motor vehicle with a salvage title is placed in
operative condition, application shall be made to Service Oklahoma
or a licensed operator for a rebuilt title. A visual inspection of
the vehicle and examination of the vehicle identification numbers
shall be conducted prior to the issuance of a rebuilt title. At the
time of issuance, the salvage title shall be returned to Service
Oklahoma by the owner, or by the licensed operator if the licensed
operator issues the rebuilt title. A visual inspection shall also
ENR. S. B. NO. 1920 Page 4
be made of any out-of-state vehicle to be registered and titled in
this state if the vehicle is within the class of vehicles for which
a rebuilt title is required and a similar inspection has not been
conducted by another state. The certificate of title for the
rebuilt vehicle shall be stamped with the words, “This Rebuilt
Vehicle Has Been Inspected by the Appropriate State Official.”
E. 1. The visual inspections and examination of vehicle
identification numbers shall include, but not be limited to:
a. comparison of the vehicle identification numbers with
the number recorded on the ownership records,
b. inspection of the vehicle identification numbers and
the VIN plate to detect possible alteration or other
fraud,
c. interpretation of the vehicle identification number
recorded on the ownership documents to assure that it
accurately describes the motor vehicle in question,
and
d. inspection of the odometer of the vehicle to detect
rollback or alteration.
2. All vehicle damage shall be repaired before the examination
is conducted. The following paperwork shall be presented to the
licensed operator: the salvage title and original receipts for all
parts placed on the vehicle. Components such as doors, motor, and
transmission shall indicate the serial number or the vehicle
identification number (VIN) of the auto the part was purchased from
or removed from.
F. The visual inspection and vehicle identification numbers
examination shall be performed by a licensed operator at the
location designated by the licensed operator. If the location of
the inspection is not the place of business of the rebuilder, the
licensed operator shall issue a permit authorizing the applicant to
operate the vehicle upon the public streets, roads, and highways in
route to and from the designated location for the inspection. The
inspection and examination shall be performed within ten (10)
working days after the owner of the vehicle requests the inspection
ENR. S. B. NO. 1920 Page 5
and examination. Requests shall be made by completing the request
form prescribed and provided by Service Oklahoma.
G. Inspection and examination of a rebuilt vehicle shall be
performed by a person employed by a licensed operator.
H. The fee for the examination by the licensed operator shall
be Twenty-five Dollars ($25.00), which shall be paid at the time of
issuance of the certificate of title for the rebuilt vehicle. The
licensed operator shall retain Five Dollars ($5.00) and shall remit
Twenty Dollars ($20.00) to the Oklahoma Tax Commission which shall
retain Ten Dollars ($10.00) and transmit Ten Dollars ($10.00) to the
State Treasurer for deposit in the Department of Public Safety
Revolving Fund through December 31, 2022. Beginning January 1,
2023, through June 30, 2026, the licensed operator shall retain Five
Dollars ($5.00) and shall remit Twenty Dollars ($20.00) to the Tax
Commission which shall retain Ten Dollars ($10.00) and transmit Ten
Dollars ($10.00) to the State Treasurer for deposit in the Service
Oklahoma Revolving Fund. Beginning July 1, 2026, the licensed
operator shall retain Five Dollars ($5.00) and shall remit Twenty
Dollars ($20.00) to Service Oklahoma which shall retain Ten Dollars
($10.00) and transmit Ten Dollars ($10.00) to the State Treasurer
for deposit in the Service Oklahoma Revolving Fund. The licensed
operator and its employees and agents may not be sued for and shall
not be liable for any damages allegedly arising out of the
inspection of a vehicle or any acts or omissions in the performance
of the inspection. The licensed operator may be held liable for any
damages to the vehicle caused by the negligent acts or omissions in
the performance of the inspection. Any person may be liable for any
damages to a vehicle caused by the intentional acts or omissions in
the performance of the inspection.
I. The rebuilt title and any subsequent transfers of such title
shall also reflect that the vehicle was a salvage vehicle, flood-
damaged vehicle, or recovered-theft vehicle, if applicable, and also
shall include the salvage date.
J. Any title for a motor vehicle issued pursuant to the laws of
any other state which reflects that such vehicle is a salvage
vehicle, a rebuilt vehicle or a junked vehicle or has any other
brand or classification notation by that state shall be retained on
the new title issued by Service Oklahoma unless the actual
ENR. S. B. NO. 1920 Page 6
documented cost of repairing the vehicle for safe operation on the
highway does not exceed sixty percent (60%) seventy percent (70%) of
the fair market value of the vehicle as provided by this section.
K. When the insurance company pays a loss on a vehicle which is
registered at the time of mishap, accident, burning, or flooding,
the appropriate certificate of title shall be issued without the
payment of additional registration fees or excise taxes, upon the
submission of a police report or insurance adjuster’s report and a
declaration by the insurer that the vehicle is held for sale to a
dealer. If the owner of the vehicle or other insured retains
ownership of the damaged vehicle, Service Oklahoma shall notify the
owner or insured of the requirements of this section.
L. Any insurance company that pays a claim for a loss where the
cost of repairing the vehicle for safe operation on the highway
exceeds sixty percent (60%) seventy percent (70%) of the market
value of the vehicle or pays a claim for a flood-damaged vehicle as
defined in Section 1105 of this title shall notify, in writing, the
holder of the certificate of title of the requirements of this
section and shall notify Service Oklahoma of the payment of such
claim. The notice shall include the estimated total damage
percentage determination of the actual cash value made by the
insurance company to repair the vehicle for safe operation on the
highway. The insurance company shall also send a copy of the
notification to the holder of the title. Service Oklahoma shall
provide notice to the owner of the vehicle in writing requiring the
owner to surrender the title along with the fee to Service Oklahoma
or one of its licensed operators within thirty (30) days from the
receipt of notice for the issuance of the appropriate title based on
the amount of loss. Service Oklahoma shall reissue the appropriate
title with the words “Flood Damaged” on the face of the title in the
case of a flood-damaged vehicle; provided, no insurance company
shall pay a claim for less than the amount to which the holder of
the certificate of title is rightfully entitled in order to avoid
compliance with this section.
M. Except as provided for in subsection N of this section, any
person, firm, corporation, or other legal entity convicted of
violating any provision of this section shall be guilty of a
misdemeanor and shall be punished by a fine of not less than Three
Hundred Dollars ($300.00) or by incarceration imprisonment in the
ENR. S. B. NO. 1920 Page 7
county jail for not more than six (6) months, or by both the fine
and incarceration imprisonment.
N. Any owner of a titled vehicle who has knowledge that the
title is not the proper type for the vehicle and, with intent to
misrepresent the vehicle, fails to make the appropriate title
changes, shall be guilty of a misdemeanor. Any person who has
knowledge that the title is not the proper type for the vehicle, and
with intent to misrepresent the vehicle, buys or receives any
vehicle for which the appropriate title changes have not been made
as required by the Oklahoma Vehicle License and Registration Act
shall be guilty of a misdemeanor. Any person found guilty in
accordance with the provisions of this subsection shall be punished
by a fine of not more than One Thousand Dollars ($1,000.00) for the
first offense or Five Thousand Dollars ($5,000.00) for the second or
subsequent offense, or by imprisonment in the county jail for a term
not exceeding six (6) months, or by both such fine and imprisonment.
O. Any owner of a salvage or junked vehicle shall submit the
certificate of title to Service Oklahoma or the licensed operator
for issuance of an appropriate title. Any holder of a certificate
of title issued by this state, to a vehicle which no longer exists,
shall surrender the certificate of title to Service Oklahoma for
cancellation. The vehicle identification number on the canceled
certificate of title shall be preserved in the computer of
electronically by Service Oklahoma for at least five (5) years.
Nothing in this section shall be construed to prevent the
transfer of ownership of a vehicle by assignment of the title to a
used car dealer, wholesale used car dealer, or a licensed automotive
dismantler or parts recycler.
SECTION 2. This act shall become effective November 1, 2026.
ENR. S. B. NO. 1920 Page 8
Passed the Senate the 23rd day of February, 2026.
Presiding Officer of the Senate
Passed the House of Representatives the 6th day of May, 2026.
Presiding Officer of the House
of Representatives
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this ____________________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________
Approved by the Governor of the State of Oklahoma this _________
day of ___________________, 20_______, at _______ o'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this __________
day of __________________, 20 _______, at _______ o'clock _______ M.
By: _________________________________