I have to admit that I don't understand this. Maybe I need another cup of tea. What would the fraud be?
The police officer who inspected my repairs of the four panel dents that lead the insurance company to declare the car totaled, used that as the reason. To prevent insurance claims on preexisting damage that had already been paid out for. Frankly, I think the insurance company should be responsible for policing their own gullibility, not getting the government to do it for them.
Of course, I don't know if this thinking actually extends to boats. Maritime law has its unique quirks.
It seems like it may extend further than that. Off the top of my head I could think of situations where the shape of your boat could affect others in the marina. If your mast falls down on the boat next to you, if your boat starts a fire, or if your boat sinks and the marina wants it to be removed, all seem like reasons the marina might want to ensure you’re adequately covered, and all depend on the shape of your boat.
I agree, however the example problems you listed are just as likely to be the case for any boat.
The designation of salvage is not a statement of safety. Although, the officer who inspected my vehicle and the agent who issued my temporary plates believed it to be. "Salvage" is an insurance company term, all the papers marking a vehicle as salvage are generated by the insurance company. The only thing the state does is inspect the repairs to allow the issuance of a new title which will retain the declaration of salvage. You still need a standard, separate, vehicle inspection sticker conducted by a certified garage and to register the inspected vehicle as you would any other. The salvage inspection is just to make sure they keep track of the vehicle and its parts so that no one can make a double claim.
-Will (Dragonfly)