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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2021

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A N   A C T

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

     Introduced By: Senator Louis P. DiPalma

     Date Introduced: April 01, 2021

     Referred To: Senate Judiciary

     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:

     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 a claim for damage or theft shall within ten (10) days deliver to the division

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) 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. 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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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.

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