House Bill #6188 (2021)

AN ACT RELATING TO MOTOR AND OTHER VEHICLES -- RHODE ISLAND SALVAGE LAW

Provides that if an insurance company is unable to obtain a certificate of title for a vehicle, the insurance company or its agent may apply for and obtain, free and clear of all liens and claims of ownership, a salvage certificate of title.

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Changes since original draft

  • 2021 – H 6188
  • 2021 – H 6188 SUBSTITUTE A
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  • LC002515
  • LC002515/SUB A
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  • S T A T E O F R H O D E I S L A N D
  • IN GENERAL ASSEMBLY
  • JANUARY SESSION, A.D. 2021
  • S T A T E O F R H O D E I S L A N D
  • IN GENERAL ASSEMBLY
  • JANUARY SESSION, A.D. 2021
  • ____________
  • A N A C T
  • RELATING TO MOTOR AND OTHER VEHICLES – RHODE ISLAND SALVAGE LAW
  • Introduced By: Representatives Vella-Wilkinson, Cardillo, Casimiro, and Bennett
  • Date Introduced: March 31, 2021
  • Referred To: House Corporations
  • It is enacted by the General Assembly as follows:
  • SECTION 1. Section 31-46-1 of the General Laws in Chapter 31-46 entitled "Rhode Island Salvage Law" is hereby amended to read as follows:
  • SECTION 1. Section 31-46-1 of the General Lawsin Chapter 31-46 entitled "Rhode Island Salvage Law" is hereby amended to read as follows:
  • 31-46-1. Duty of insurance company.
  • (a) Any insurance company taking possession of a motor vehicle for which a certificate of title has been issued in this state, that has been declared a total loss because of damage to that vehicle,in settlement of aclaimfor damage or theft shall withinten(10) days deliver tothedivision of motor vehicles the certificate of title of that vehicle and obtain a salvage certificate of title for that vehicle as prescribed for by the administrator of the division of motor vehicles. If the insurance companyis unableto obtainthe certificateof title of thevehicle,theinsurance companyor its agent may apply for and obtain, free and clear of all liens and claims of ownership, a salvage certificate of title in the insurance company's name without delivering the certificate of title to the division of motor vehicles. In such application, the insurance company or its agent shall declare, under penalty of perjury, that the insurance company has paid a total loss claim on the vehicle and has made at least two (2) written attempts, addressed to the last known owner of the vehicle and any known lienholder, to obtain the certificate of title.
  • (a) Any insurance company taking possession of a motor vehicle for which a certificate of title has been issued in this state, that has been declared a total loss because of damage to that vehicle,in settlement of aclaimfor damage or theft shall withinten(10) days deliver tothedivision of motor vehicles the certificate of title of that vehicle and obtain a salvage certificate of title for that vehicle as prescribed for by the administrator of the division of motor vehicles. If the insurance company is unable to obtain the certificate of title of the vehicle for more than thirty (30) days after payment of the total loss claim on the vehicle, the insurance company or its agent may apply for and obtain, free and clear of all liens and claims of ownership, a salvage certificate of title in the insurance company's name without delivering the certificate of title to the division of motor vehicles. Such application shall be accompanied by evidence that the insurance company has paid a total loss claim on the vehicle and has attempted to obtain the certificate of title by sending at least two (2) written attempts, sent by certified mail or by another commercially available delivery service providing proof of delivery and addressed to the last known owner of the vehicle and any known lienholders, at the address shown on the records of the appropriate registry, in the state in which the vehicle is registered.
  • (b) If:
  • (1) An insurance company requests that a motor vehicle dealer take possession of a motor vehicle for which a certificate of title has been issued in this state;
  • (1) A motor vehicle dealer, the primary business of which is the sale of salvage motor vehicles on behalf of insurance companies, is asked by an insurance company to take possession of a motor vehicle for which a certificate of title has been issued in this state;
  • (2) The motor vehicle is the subject of an insurance claim; and
  • (3) Subsequently a total loss claim is not paid by the insurance company with respect to such motor vehicle, the motor vehicle dealer may, if such motor vehicle has been abandoned at the facility of the motor vehicle dealer for more than thirty (30) days, apply for and obtain, free and clear of all liens and claims of ownership, a salvage certificate of title in such dealer's name without surrendering the certificate of title to the division of motor vehicles. In such application, the motor vehicle dealer shall declare, under penalty of perjury, that the motor vehicle dealer made at least two (2) written attempts, addressed to the last known owner of the vehicle and any known lienholder,tohavethevehicleremovedfromthe motorvehicledealer'sfacility. Insuchapplication, the motor vehicle dealer shall also classify the vehicle as Classification A or Classification B, as such classifications are described in §31-46-1.1.
  • (3) Subsequently a total loss claim is not paid by the insurance company with respect to such motor vehicle, the motor vehicle dealer may, if such motor vehicle has been abandoned at the facility of the motor vehicle dealer for more than thirty (30) days, apply for and obtain, free and clear of all liens and claims of ownership, a salvage certificate of title in such dealer's name without surrendering the certificate of title to the division of motor vehicles. Such application shall be accompanied by evidence that the motor vehicle dealer made at least two (2) written attempts, sent by certified mail or by another commercially available delivery service providing proof of delivery and addressed to the last known owner of the vehicle and any known lienholders, at the address shown on the records of the appropriate registry, in the state in which the vehicle is registered, to have the vehicle removed from the motor vehicle dealer's facility. In such application, the motor vehicle dealer shall also classify the vehicle as Classification A or Classification B, as such classifications are described in § 31-46-1.1.
  • SECTION 2. This act shall take effect upon passage.
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  • LC002515
  • LC002515/SUB A
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  • EXPLANATION
  • BY THE LEGISLATIVE COUNCIL
  • OF
  • A N A C T
  • RELATING TO MOTOR AND OTHER VEHICLES – RHODE ISLAND SALVAGE LAW
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  • This act would provide that if an insurance company taking possession of a motor vehicle that has been declared a total loss is unable to obtain a certificate of title for the vehicle, the insurance company or its agent may, upon the satisfaction of certain conditions, apply for and obtain, free and clear of all liens and claims of ownership, a salvage certificate of title in the insurance company's name without delivering the certificate of title to the division of motor vehicles.
  • This act would take effect upon passage. ======== LC002515 ========
  • This act would take effect upon passage. ======== LC002515/SUB A ========

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