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:

     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, 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. 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.

     (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;

     (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, 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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