Flood-damaged vehicle means a motor vehicle which: 1. Has been submerged in water to a point that the level of the water is higher than the door sill of the vehicle and the water has entered the passenger, trunk or engine compartment of the vehicle and has come into contact with the electrical system of the vehicle; or 2. Has been acquired by an insurance company or retained by its owner or any other person as part of a total loss settlement resulting from water damage.
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