Maryland Transportation Section 13-506
§ 13-506.
(a) (1) A salvage certificate shall be issued in accordance with the provisions of this section.
(2) A salvage certificate issued under this section shall:
(i) Be issued in the name of the applicant; and
(ii) Serve as an ownership document.
(a-1) For purposes of this section, a vehicle has not been acquired by an insurance company if an owner retains possession of the vehicle upon settlement of a claim concerning the vehicle by the insurance company.
(b) The Administration shall issue a salvage certificate:
(1) To an insurance company that:
(i) Is licensed to insure automobiles in this State;
(ii) Acquires a vehicle as the result of a claim settlement; and
(iii) Within 10 days after the date of settlement, applies for a salvage certificate as provided in subsection (c) of this section;
(2) To an automotive dismantler and recycler that:
(i) Acquires a salvage vehicle from a source other than an insurance company licensed to insure automobiles in this State;
(ii) Acquires a salvage vehicle by a means other than a transfer of a salvage certificate; and
(iii) Applies for a salvage certificate as provided in subsection (d) of this section; or
(3) To any other person who:
(i) Acquires or retains ownership of a vehicle that is salvage, as defined in § 11-152 of this article;
(ii) Applies for a salvage certificate on a form provided by the Administration; and
(iii) Pays a fee established by the Administration.
(c) (1) An insurance company shall apply for a salvage certificate on a form provided by the Administration for each vehicle titled in the State that is acquired as a result of a claim settlement arising from an accident that occurred in the State.
(2) The application under paragraph (1) of this subsection shall be accompanied by:
(i) The certificate of title of the vehicle;
(ii) A statement by the insurance company that:
1. The cost to repair the vehicle for highway operation is greater than the fair market value of the vehicle prior to sustaining the damage for which the claim was paid;
2. The cost to repair the vehicle for highway operation is equal to or less than the fair market value of the vehicle prior to sustaining the damage for which the claim was paid;
3. The vehicle is not rebuildable, will be used for parts only, and is not to be retitled; or
4. The vehicle has been stolen; and
(iii) A fee established by the Administration.
(3) Subject to the provisions of § 13-507(c)(2) of this subtitle, a salvage certificate issued under this paragraph shall contain a conspicuous notation by the Administration that describes which of the statements under paragraph (2)(ii) of this subsection applies to the vehicle.
(d) (1) An automotive dismantler and recycler may apply for a salvage certificate on a form provided by the Administration.
(2) The application under paragraph (1) of this subsection shall be accompanied by:
(i) The document through which ownership of the vehicle was acquired; and
(ii) A fee established by the Administration.
(e) (1) An insurance company shall promptly notify the Administration when the company makes a claim settlement on a vehicle that is salvage if:
(i) The vehicle is 7 model years old or newer; and
(ii) The owner retains possession of the vehicle.
(2) The notice under paragraph (1) of this subsection shall be accompanied by the title to the vehicle and a fee established by the Administration and shall include:
(i) The name of the vehicle's owner and a description of the vehicle; and
(ii) A statement by the insurance company that:
1. The cost to repair the vehicle for highway operation is greater than the fair market value of the vehicle prior to sustaining the damage for which the claim was paid; or
2. The vehicle is not rebuildable, will be used for parts only, and is not to be retitled.
(3) On receipt of the notice under paragraph (1) of this subsection, the Administration shall:
(i) Record that the vehicle has been declared salvage; and
(ii) 1. In the case of a vehicle described in paragraph (2)(ii)1 of this subsection, send a notice to the owner of the vehicle that the vehicle registration will be suspended unless the owner submits proof satisfactory to the Administration that the vehicle has been inspected for safety, in compliance with Title 23 of this article, within 90 days of the date of the notice; or
2. In the case of a vehicle described in paragraph (2)(ii)2 of this subsection:
A. Issue a salvage certificate to the owner of the vehicle; and
B. Send a notice to the owner of the vehicle that the vehicle registration has been suspended and directing that the vehicle's registration plates be returned immediately to the Administration.
(4) In accordance with § 13-507 of this subtitle, after a vehicle described in paragraph (2)(ii)1 of this subsection has been inspected for safety in accordance with Title 23 of this article, the Administration shall send a new title for the vehicle to the owner.
(f) The Administration shall maintain records to indicate that a vehicle:
(1) Was transferred as salvage; and
(2) May not be titled or registered for operation in this State except in accordance with § 13-507 of this subtitle.
(g) The Administration shall establish a fee for a duplicate salvage certificate.
