2013 -- H 5563

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LC01395

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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A N A C T

RELATING TO INSURANCE - MOTOR VEHICLE INSURANCE - MANDATORY

ARBITRATION PROVISION

     Introduced By: Representative Donald J. Lally

     Date Introduced: February 14, 2013

     Referred To: House Judiciary

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 27-10.3-1 of the General Laws in Chapter 27-10.3 entitled "Motor

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Vehicle Insurance - Mandatory Arbitration Provision" is hereby amended to read as follows:

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     27-10.3-1. Arbitration provision. -- (a) Every contract of motor vehicle liability

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insurance, issued in the state by an insurance carrier authorized to do business in the state, shall

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contain the following provisions:

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      (1) Any person, referred to in this section as "the plaintiff," suffering a loss, allegedly

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resulting out of the ownership, maintenance, or use of a motor vehicle by an insured, and

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allegedly resulting from liability imposed by law for property damage, bodily injury, or death,

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may, at his or her election, whenever the claim is for twenty-five thousand dollars ($25,000) fifty

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thousand dollars ($50,000) or less, submit the matter to arbitration pursuant to chapter 3 of title

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10;

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      (2) Selection of arbitrator. - After submission to arbitration by the plaintiff, one arbitrator

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shall be selected from the list of qualified arbitrators of the court annexed arbitration program of

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the superior court in the same manner as arbitrators are selected in accordance with the rules of

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that program. Each party shall share the expenses of arbitration in accordance with the rules of

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the court annexed arbitration program;

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      (3) Hearings. - The arbitrator shall call a hearing and provide seven (7) days notice of the

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time and place of the hearing to the parties. The hearing shall be informal, and the rules of

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evidence prevailing in judicial proceedings shall be binding. Any and all documentary evidence

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and other data deemed relevant by the arbitrators may be received in evidence. The arbitrators

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shall have the power to administer oaths and to require by subpoena the attendance and testimony

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of witnesses, and the production of books, records, and other evidence, relative or pertinent to the

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issues presented to them for determination. The decision of the arbitrators shall be binding upon

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the parties unless:

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      (i) In the event that suit has not been instituted, either party reserves his or her right to a

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jury trial by giving notice of this reservation of right to the other party or parties and to the

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arbitrators within sixty (60) days of the arbitrators award by certified mail return receipt

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requested; or

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      (ii) In the event that suit has been instituted, either party files a request for a jury trial

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with the court and with notice to the other party or parties within sixty (60) days of the arbitrator's

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award. If the case proceeds to trial subsequent to arbitration, the decision of the arbitrators shall

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not be admissible;

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      (4) Statute of limitations. - Notwithstanding the foregoing, a suit shall be instituted in

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order to bring the action within any applicable statute of limitations, but the suit will be stayed

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until an arbitrators award has been made or the case reached for trial;

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      (5) Agreements to arbitrate. - Uninsured motorist contracts shall be governed by the

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provisions of section 10-3-2.

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      (b) Every person who maintains motor vehicle liability insurance shall, when making an

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application for a motor vehicle operator's license, or the renewal of that license, or when

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registering a motor vehicle, agree in writing on a form provided by the director of the department

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of transportation to be bound by the provisions of this chapter.

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     (c) The provisions of this section shall also apply to self-insureds.

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     SECTION 2. This act shall take effect upon passage.

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LC01395

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO INSURANCE - MOTOR VEHICLE INSURANCE - MANDATORY

ARBITRATION PROVISION

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     This act would increase from twenty-five thousand dollars ($25,000) to fifty thousand

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dollars ($50,000) the value of a claim under a motor vehicle liability insurance policy which may

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be submitted to arbitration pursuant to the provisions of the state arbitration act contained in

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chapter 10-3 of the general laws.

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     This act would take effect upon passage.

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LC01395

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