Responding to the bill, Tom Litjen, vice president for federal government relations for the Property Casualty Insurers Association of America, said the insurance industry has long favored disclosure to the public and the branding of salvage vehicles that are rebuilt and put back onto the highway.

"PCI and a broad-based coalition are working with Sen. Lott and others in Congress to devise legislation which will accomplish the senator's objectives in an effective and less burdensome way for the industry," Mr. Litjen said. "This legislation is expected to be introduced early in the 110th Congress."

Sen. Lott said in a statement that the legislation would direct the National Highway Traffic Safety Administration to require all insurers to commercially disclose information pertaining to total loss vehicles, perhaps through such online auto services as CAR-FAX.

"After Hurricane Katrina, I was approached by responsible auto dealers in Mississippi who were concerned about flooded vehicles ending up in the marketplace," Sen. Lott said.

"An estimated half-million vehicles were damaged by Katrina, and indeed there is evidence that these cars are being cleaned up and sold to unsuspecting consumers," the senator added.

A number of these vehicles are unsafe and should not be on the roads, he said. "And folks are overpaying for vehicles they believe are mechanically sound. To the untrained eye, they appear to be in good shape."

Sen. Lott said consumers should not have to rely on the various states' titling processes because each state is different. What's more, he said, branding information often is not passed from one state to the next.

"The insurance industry should make this information available to protect the consumers, and we will be working to enact that protection in the 110th Congress," he said.