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ArkansasTitle Reference GuideThe IAA Vehicle Alternate Method of Disposal Guide is a proprietary document prepared solely for internal use byInsurance Auto Auctions, Inc., its subsidiaries and affiliated entities (“IAA”). No part of this document is to bephotocopied, reproduced, stored in a retrieval system, transmitted electronically, or disclosed to a third party withoutprior written consent of Diversified Services Administration or IAA Executive Management. 2013. Insurance Auto Auctions, Inc.

I N S U R A N C EA U T OA U C T I O N SLast Updated 022014Table of ContentsContact Information . 3Title and Disposal Information . 4Standard Title Processing . 4OMV Title Fees . 4Duplicate Title . 4Additional Information . 5Deceased Owner Requirements . 5Repossessed Vehicle . 5Name Changes . 5Owner Retain . 5Un-Recovered Theft. 5Alternate Disposal . 6State Guidelines . 6Title Requirements by Vehicle Type . 6Title Branding Guidelines . 7Determining the Correct Title Type . 8Frequently Asked Questions . 9What type of PoA is required if the title is not signed? . 9What is required to correct a mistake that is made by the owner on the back of the title?. 9Is a copy of the written estimate needed to process the title? . 9If an owner’s full name is listed, does he/she need to sign as listed on the face of the title? . 9Sample Documents . 10Arkansas Title (Front) . 10. 10Arkansas Title (Back) . 11Arkansas Secure Power of Attorney . 12Please note - This document is intended to cover most requirements for obtaining a negotiable, lien-free title. Itis not intended to replace motor vehicle department regulations or rulings. If you have title questions pleasecontact IAA’s Title Solutions Department (TitleSolutions@iaai.com).Please direct any questions, comments, or corrections to IAA’s Title Solutions Team.TitleSolutions@iaai.com Toll Free - 888-MY-TITLE (888-698-4853) 2013. Insurance Auto Auctions, Inc.Page 2

I N S U R A N C EA U T OA U C T I O N SLast Updated 022014Contact InformationIAA Website:http://www.iaai.comTitle Questions:IAA – Title Solutions7835 Woodland DriveSuite 200Indianapolis, IN 46278Toll Free: 888-698-4853FAX: 855-584-5198TitleSolutions@iaai.comArkansas IAA Branch:Little Rock4900 S Kerr RdScott, AR 72142Phone: 501-961-2886Fax: 501-961-1805Auction: Wednesdays 9:30AM CTOffice of Motor Vehicle:Ragland Building1900 W 7th St, Ste 1100Little Rock, AR 72201Mailing AddressDepartment of Finance and AdministrationOffice of Motor Vehicles, PO Box 1272Records Unit, Room 1100Little Rock, AR 72203Phone: 501-682-4692Fax: 501-682-4756Arkansas DMV FormsPlease direct any questions, comments, or corrections to IAA’s Title Solutions Team.TitleSolutions@iaai.com Toll Free - 888-MY-TITLE (888-698-4853) 2013. Insurance Auto Auctions, Inc.Page 3

I N S U R A N C EA U T OA U C T I O N SLast Updated 022014Title mistakes can be costly and significantly delay the processing and sale of salvage vehicles. Catchingpotential errors before the title paperwork goes to auction prevents title problems that delay a vehicle’ssale by weeks or even months.Title and Disposal InformationStandard Title ProcessingIAA will apply for the appropriate title in the insurance company’s name. In order to initiate this process thevehicle 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 hasbeen 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 theunsigned title with a lien release if applicable or lienholder signed off on title, and a Secure Power ofAttorney signed by the owner.Lien Release (if applicable) – Lien to be satisfied and dated on the face, or include separate notarizedlien 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 additionalrequired forms as outlined above to a coversheet with your selling instructions noted. Forward thesedocuments to the appropriate IAA Branch.OMV Title FeesPlease contact your local IAA Branch or OMV for up-to-date fees.Salvage title fee: 10.00Duplicate title fee: 10.00Duplicate TitleWith 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 acceptablePlease direct any questions, comments, or corrections to IAA’s Title Solutions Team.TitleSolutions@iaai.com Toll Free - 888-MY-TITLE (888-698-4853) 2013. Insurance Auto Auctions, Inc.Page 4

I N S U R A N C EA U T OA U C T I O N SLast Updated 022014Additional InformationDeceased Owner Requirements Joint Ownership – Copy of Death Certificate / Spouse signs titleSingle Named Title – Surviving spouse signs title / Copy of Death CertificateOnly one named owner on title or court appointed executor – Letters of Testamentary or Letters ofAdministrator. Executor signs as seller on titleRepossessed Vehicle Lienholder signs as ownerLien release – original signature on title or financial institute letterhead, non-notarizedVIN and Vehicle Year / Make / ModelAffidavit of RepossessionPlates remain with debtorName Changes If the insured’s name is different than the name that appears on the title (i.e. different last name ornickname instead of first name), a copy of the marriage license, divorce decree or court documentstating legal name has changed may be required in addition to the signed title. Please contact anArkansas branch if questions arise.If name on title is completely different, this could be a situation where the owner purchased the vehiclefrom someone and did not title it properly. In this scenario the owner will be required to pay sales taxesand have the vehicle titled properly before it can be sold. Contact your local IAA branch or TitleSolutions for assistance in resolving these situations. Title Solutions requires written approval via emailor 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 retainthe vehicle but must obtain a salvage title.By law the owner must provide proof of salvage before payment can be issued or must relinquish titleto 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 havean 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 nothave an office in Arkansas, IAA Little Rock address can be used and the special mailing address sectioncan be IAA’s address.Please direct any questions, comments, or corrections to IAA’s Title Solutions Team.TitleSolutions@iaai.com Toll Free - 888-MY-TITLE (888-698-4853) 2013. Insurance Auto Auctions, Inc.Page 5

I N S U R A N C EA U T OA U C T I O N SLast Updated 022014Alternate Disposal Total Loss Settlement Title -- / 30 days post settlement. Requirements follow –o Salvage or Parts Only Titleo Total Loss Settlement Title surrenderedo VIN Inquiryo Certified Letters – Two (2) attempts last known LH / ownero Parts Only – Declaration of Damage requiredo Sales Tax not applicable to provider on settlement transactionso Online DMV Screen – “Previous Title Info” Po Proceeds 150.00 if IAA sends lettersAbandonment - If the Provider is unable to obtain a negotiable title, they can abandon the vehicle toIAA via a written notification on Provider letterhead releasing their interest, and payment of 50disposal 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. Providerwill need to cover the alternate disposal fee of 250.00. Proceeds will go to the provider.State GuidelinesTitle Requirements by Vehicle TypeVehicle TypeTitledNotePassenger vehiclesATVsBoatsYesYesNo1949 or newer model yearCommercial trucks (i.e. tractor trailers)Farm EquipmentYesNoSell on bill of saleManufactured and mobile homesMopedsYesNoSell on bill of saleMotor Homes and RV’sMotorcyclesYesYesOff-road vehiclesSnowmobilesYesNoTrailersSemi TrailersYesYesSell on bill of saleSell on bill of salePlease direct any questions, comments, or corrections to IAA’s Title Solutions Team.TitleSolutions@iaai.com Toll Free - 888-MY-TITLE (888-698-4853) 2013. Insurance Auto Auctions, Inc.Page 6

I N S U R A N C EA U T OA U C T I O N SLast Updated 022014Title Branding GuidelinesSalvage TitleCost of Repair /70% ACV and / 8 yearsSalvage title required on ANY flood vehicle, regardless of CoR / damage amount,when/if water level reached was at/above vehicle dashboardExemptions – 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 lossoccurrence as calculated by subtracting eight (8) from current calendar yearParts Only – Issued if title is surrendered, and titled owner determines vehicle has noresale value other than as source for parts or scrapClear TitleSalvage Repairable – A Salvage-Repairable title is for vehicles that have been declareda total loss but are repairable. This type of title requires at least one sub-brand. Collision Theft Fire Vandalism Salt Flood OtherAffidavit of Reconstruction required for repairable salvage vehiclesAny motor vehicle seven (7) model years prior to calendar year of total lossoccurrence as calculated by subtracting eight (8) from current calendar year are exemptfrom brandingPlease direct any questions, comments, or corrections to IAA’s Title Solutions Team.TitleSolutions@iaai.com Toll Free - 888-MY-TITLE (888-698-4853) 2013. Insurance Auto Auctions, Inc.Page 7

I N S U R A N C EA U T OA U C T I O N SLast Updated 022014Determining Title TypeVehicle declared atotal lossIs vehicle aboat,snowmobile, ormoped?YNot titled inArkansasNIs vehicle olderthan 1949YNYIs cost of repair / 70% ACV?NTitle mayremain clearSalvageTitleRequiredNWas vehicle 7model years priorto calendar lossyear?YYIs this a floodclaim?YWas waterlevel abovelevel ofdashboard?Please direct any questions, comments, or corrections to IAA’s Title Solutions Team.TitleSolutions@iaai.com Toll Free - 888-MY-TITLE (888-698-4853) 2013. Insurance Auto Auctions, Inc.Page 8