Legislative Update
Legislative Update | February 2019
Published February 25, 2019 - Written by IAA, Inc.
Summary
Insurance Auto Auctions actively monitors and engages on legislative and regulatory matters to help promote responsible business conduct and continued healthy expansion of the salvage auto auction industry. IAA's Government Affairs Department works with lobbyists, insurance companies and others to support legislative bills that are beneficial to the industry and all of its participants.
New Bills
Arkansas House Bill 1322
Introduced January 31, 2019
Proposes an amendment to the “water-damaged” vehicle definition to mean a motor vehicle that has been submerged in water to the point that rising water has reached over the doorsill and has entered the passenger compartment.
IAA opposes this amendment because it focuses on where the water has been as opposed to what damage has been done.
Connecticut House Bill 5849
Introduced January 23, 2019
Prohibits property and casualty insurers from taking possession of a motor vehicle that is covered under an automobile insurance policy and deemed to be a constructive total loss until the insurer and the claimant under the policy agree on a settlement amount.
IAA position is neutral.
Hawaii House Bill 270/Senate Bill 822
Introduced January 18, 2019
Amends the definition of a total loss to include flood damage to the vehicle’s electronics.
IAA supports this bill.
Maryland House Bill 1164
Introduced February 8, 2019
Amends the definition of a salvage vehicle by deleting the 75% damage threshold and replacing it with “value of the vehicle is below the vehicle value threshold”. The DMV is to determine the vehicle value threshold using “formula or other method” that provides an insurance company flexibility in determining when to declare a vehicle salvage.
IAA opposes this proposal because it uses terms that are undefined and not easily understood.
Missouri House Bill 645
Introduced January 23, 2019
Changes the law by eliminating the “six-year” salvage requirement. Under HB 645, every vehicle with an estimate repair cost of 80% or more of the retail value will be classified as “salvage,”regardless of whether the damage is structural or cosmetic, even if the vehicle remains roadworthy.
IAA opposes the bill because, in our opinion, it will harm (1) consumers by needlessly requiring a “salvage” designation on their vehicle title; (2) insurers by decreasing the sales proceeds of vehicles sold, and (3) vehicle rebuilders by increasing their costs.
Oregon House Bill 2904
Introduced February 6, 2019
Allows an auto auction company to apply for a salvage title in the insurer’s name when the insurer is unable to obtain the certificate of title for the vehicle.
IAA supports this proposal for addressing gaps in the statutory scheme.
Utah Senate Bill 82
Introduced January 28, 2019 Amended February 5, 2019
The introduced bill would have resulted in a theft-recovered vehicle with little or no damage to receive a rebuilt salvage title. Per IAA’s request, the bill was amended in the following way. An insurance company would be allowed to obtain a clear title for the stolen vehicle. When the vehicle is recovered, the insurance company may sell the vehicle with that title. However, if the vehicle is either a salvage or non-repairable, the insurance company would obtain a salvage or non-repairable title for the vehicle.
IAA supports the above change.
For more information about IAA's legislative and regulatory activities, contact:
Katerina Dotzeva
Director of Government Affairs, Insurance Auto Auctions
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