CARVANA

    Posted by MAIA on May 20, 2020 12:00:00 AM

    This question was answered based upon current rules, regulations & statutes in effect on May 13, 2020
     
    QUESTION

    I have a client that is purchasing a vehicle from Carvana online . They are asking me to stamp the RTA form and send it back to them.

    They send me the title but said they do not fill the back of the title out until they receive the stamped RTA form.  I do not have anything showing that our insured is purchasing this vehicle.

    They are telling me that he has been approved for his loan but cannot finalize his sale until the stamped RTA form is returned (it is not signed by the insured).

    This is how it works with them.

    Can I stamp and sign the RTA form without any proof of purchase.

    Can  you help with this or advise me on who to contact about this.   

    Thank you

    ANSWER

    Kathy Cormier:  I would not stamp anything without the title assigned to your customer as that is the trigger of coverage in the MAP.  I’ve attached a Tech Talk that Irene Morrill wrote on CARVANA.  We shared this with CARVANA and you can share this with your customer.

    If they tell the customer to swap their plates before the title is assigned, please let me know as that is also a violations of the 7 day transfer law and delivering the vehicle without the assignment of title.

    If this is a new plate transaction and they give the customer a plate, please let me know.  We have filed complaints with the RMV on their process and it is still being investigated.

    If the loan is pending verification of insurance, I would say that you can issue a binder with the words Coverage becomes effective upon transfer of title so that everyone knows there is no coverage until that title is assigned.  This is what we advise agents for all dealer sales.  The binder is sufficient for the bank to know that once the title is assigned to the customer there will be coverage.  The minute you stamp a form you are stating that there is coverage and that is why you shouldn’t stamp anything without the title assigned to the customer.

    I hope this helps.

    Agent: Thank you

    I did know that I should not stamp the RTA form without the title being assigned to our customer, but Carvana didn’t care how they do it in MA. This is how they do.

    This document is not a legal opinion and should not be relied upon as such. The intent of this document is to provide a general background regarding the topic or topics discussed, not to provide legal advice. Producers and agencies should consult an attorney regarding specific situations and specific questions with respect to the topic or topics covered in this document. Neither the Massachusetts Association of Insurance Agents, Number One Insurance Agency nor any of its employees shall be responsible for any errors or omissions regarding any statements made in this document, nor any errors or omissions regarding any statutes, regulations, court rules, and/or any other government documents cited in this document.

    Topics: Registry, 2020

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