Rhode Island 2022 Regular Session

Rhode Island Senate Bill S2098

Introduced
1/25/22  

Caption

Rhode Island Salvage Law

Impact

The introduction of S2098 brings significant changes to the procedural requirements for salvage title certifications in Rhode Island. By allowing insurance firms to expedite the certification process without the previous requirement of obtaining notarization for certain documents, there is an expectation of increased efficiency in the handling of total loss claims. This change could also streamline operations for salvage motor vehicle dealers, particularly in cases where vehicles have been abandoned, as they can more easily access salvage titles without extensive waiting periods. The removal of the notarization clause lowers barriers for insurers, potentially leading to faster resolution of claims and the movement of vehicles through the salvage process.

Summary

S2098, introduced in the Rhode Island General Assembly, aims to amend the existing Salvage Law concerning motor vehicles. The key focus of this bill is to streamline the process for insurance companies and salvage motor vehicle dealers when handling vehicles declared a total loss. Specifically, the bill mandates that insurance companies must deliver the vehicle’s certificate of title to the Division of Motor Vehicles within ten days after a total loss is declared. Additionally, it allows insurance companies to obtain salvage certificates directly if they are unable to secure the title from the vehicle's previous owner within a specified timeframe, simplifying the process for companies managing vehicle claims.

Contention

While the bill is largely positioned as a technical improvement, there may be concerns about the implications for vehicle owners who could face quicker abandonment of vehicles by dealers if claims are not paid. Critics may argue that it reduces accountability for insurance companies, who might not exercise sufficient diligence in attempting to contact previous owners before obtaining salvage titles. Moreover, the lack of a notarization requirement could lead to concerns about the authenticity of transactions and the verification of ownership claims, thereby raising potential risks of fraud within the salvage title process.

Companion Bills

No companion bills found.

Previously Filed As

RI H5929

Prohibits the holding of multiple drivers licenses or identification cards and would change the term "re-constructed salvage" to "rebuilt salvage" for purposes of the Rhode Island salvage law.

RI S0620

Prohibits the holding of multiple drivers licenses or identification cards and would change the term "re-constructed salvage" to "rebuilt salvage" for purposes of the Rhode Island salvage law.

RI H5839

Rhode Island Business Corporation Act

RI H1517

Damaged or Salvage Motor Vehicles, Mobile Homes, and Vessels

RI H5840

Rhode Island Commerce Corporation

RI S0713

Rhode Island Commerce Corporation

RI HB1788

Relating to the regulation of salvage vehicle dealers, salvage pool operators, and salvage vehicle rebuilders; expanding the applicability of an occupational license.

RI SB1504

Relating to the regulation of salvage vehicle dealers, salvage pool operators, and salvage vehicle rebuilders; expanding the applicability of an occupational license.

RI H7774

Rhode Island Business Corporation Act

RI H7593

The Rhode Island Cannabis Act

Similar Bills

No similar bills found.