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Maryland Salvage Bill Passes State House

April 07, 2010

ANNAPOLIS, MD - The Maryland House on March 25 passed a bill (HB 1199) raising the total loss threshold in the state, CollisionWeek reported. The legislation is now under consideration in the Senate. 

A hearing on the Senate bill was scheduled for April 7. 

The bill's provisions create an additional salvage application statement that an insurer must provide in certain circumstances; prohibit anyone from using specified costs to determine the cost to repair a vehicle for highway operation under the motor vehicle salvage program; and ensure that a specified cost of repair calculation may not affect specified rights. 

The legislation would add an exclusion for non-structural items to the state's total-loss calculation. Specific exclusions would be determined by the Maryland Motor Vehicle Administration and State Police. 

The bill also would create a specific exclusion for costs arising from towing, storage and vehicle rental, and would require a salvage certificate application for any vehicle acquired by an insurance company as a result of a claim settlement, CollisionWeek reported.

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