(a) Transfer of possession of motor vehicles. Any insurance company licensed to do business in the State of Arkansas that obtains possession of a motor vehicle as the result of a settlement of an insurance claim, and the motor vehicle has not sustained sufficient damage to require the issuance of a salvage title or is excluded from the definition of motor vehicle by virtue of its age:

1. (1) May dispose of the motor vehicle by reassigning the existing certificate of title assigned to the insurance company by the insured owner; and
2. (2) Shall not be required to apply for registration and issuance of a title in the name of the insurance company.

(b) Transfer of possession of exempt vehicles. Any insurance company licensed to do business in the State of Arkansas that obtains possession of exempt motorcycles, motor-driven cycles, and trucks with an unladen weight of ten thousand pounds (10,000 lbs.) or more as the result of a settlement of an insurance claim, and the vehicle is excluded from the definition of motor vehicle:

1. (1) May dispose of the vehicle by reassigning the existing certificate of title assigned to the insurance company by the insured owner; and
2. (2) Shall not be required to apply for registration and issuance of a title in the name of the insurance company.

(c) Insurers having the responsibility under this part to surrender the certificate of title on a salvage vehicle for which it has taken title or to notify the Secretary of the Department of Finance and Administration that a motor vehicle is a salvage, rebuilt, or parts-only vehicle may delegate the responsibility of surrendering the certificate of title or of notification to:

1. (1) A servicing organization; or
2. (2) Any person or entity purchasing the vehicle from the insurer.

(d) Insurers shall remain responsible under Arkansas law if the servicing organization or purchaser fails to:

1. (1) Properly surrender the title; or
2. (2) Notify the secretary.