2021 -- H 6188

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LC002515

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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: 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:

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     SECTION 1. Section 31-46-1 of the General Laws in Chapter 31-46 entitled "Rhode Island

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Salvage Law" is hereby amended to read as follows:

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     31-46-1. Duty of insurance company.

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     (a) Any insurance company taking possession of a motor vehicle for which a certificate of

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title has been issued in this state, that has been declared a total loss because of damage to that

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vehicle, in settlement of a claim for damage or theft shall within ten (10) days deliver to the division

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of motor vehicles the certificate of title of that vehicle and obtain a salvage certificate of title for

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that vehicle as prescribed for by the administrator of the division of motor vehicles. If the insurance

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company is unable to obtain the certificate of title of the vehicle, the insurance company or its agent

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may apply for and obtain, free and clear of all liens and claims of ownership, a salvage certificate

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of title in the insurance company's name without delivering the certificate of title to the division of

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motor vehicles. In such application, the insurance company or its agent shall declare, under penalty

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of perjury, that the insurance company has paid a total loss claim on the vehicle and has made at

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least two (2) written attempts, addressed to the last known owner of the vehicle and any known

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lienholder, to obtain the certificate of title.

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     (b) If:

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     (1) An insurance company requests that a motor vehicle dealer take possession of a motor

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vehicle for which a certificate of title has been issued in this state;

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     (2) The motor vehicle is the subject of an insurance claim; and

 

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     (3) Subsequently a total loss claim is not paid by the insurance company with respect to

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such motor vehicle, the motor vehicle dealer may, if such motor vehicle has been abandoned at the

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facility of the motor vehicle dealer for more than thirty (30) days, apply for and obtain, free and

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clear of all liens and claims of ownership, a salvage certificate of title in such dealer's name without

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surrendering the certificate of title to the division of motor vehicles. In such application, the motor

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vehicle dealer shall declare, under penalty of perjury, that the motor vehicle dealer made at least

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two (2) written attempts, addressed to the last known owner of the vehicle and any known

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lienholder, to have the vehicle removed from the motor vehicle dealer's facility. In such application,

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the motor vehicle dealer shall also classify the vehicle as Classification A or Classification B, as

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such classifications are described in §31-46-1.1.

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     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

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that has been declared a total loss is unable to obtain a certificate of title for the vehicle, the

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insurance company or its agent may, upon the satisfaction of certain conditions, apply for and

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obtain, free and clear of all liens and claims of ownership, a salvage certificate of title in the

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insurance company’s name without delivering the certificate of title to the division of motor

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vehicles.

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     This act would take effect upon passage.

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