2024 -- S 3042 | |
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LC005951 | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2024 | |
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A N A C T | |
RELATING TO INSURANCE -- MOTOR VEHICLE INSURANCE -- MANDATORY | |
ARBITRATION PROVISION | |
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Introduced By: Senators Bissaillon, F. Lombardi, LaMountain, Burke, Tikoian, Quezada, | |
Date Introduced: May 03, 2024 | |
Referred To: Senate Judiciary | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Section 27-10.3-1 of the General Laws in Chapter 27-10.3 entitled "Motor |
2 | Vehicle Insurance — Mandatory Arbitration Provision" is hereby amended to read as follows: |
3 | 27-10.3-1. Arbitration provision. |
4 | (a) Every contract of motor vehicle liability insurance, issued in the state by an insurance |
5 | carrier authorized to do business in the state, shall contain the following provisions: |
6 | (1) Any person, referred to in this section as “the plaintiff,” suffering a loss, allegedly |
7 | resulting out of the ownership, maintenance, or use of a motor vehicle by an insured or self-insured, |
8 | and allegedly resulting from liability imposed by law for property damage, bodily injury, or death, |
9 | may, at his or her election, whenever the claim is for fifty thousand dollars ($50,000) one hundred |
10 | thousand dollars ($100,000) or less, submit the matter to arbitration pursuant to chapter 3 of title |
11 | 10; |
12 | (2) Selection of arbitrator. After submission to arbitration by the plaintiff, one arbitrator |
13 | shall be selected from the list of qualified arbitrators of the court annexed arbitration program of |
14 | the superior court in the same manner as arbitrators are selected in accordance with the rules of that |
15 | program. Each party shall share the expenses of arbitration in accordance with the rules of the court |
16 | annexed arbitration program; |
17 | (3) Hearings. The arbitrator shall call a hearing and provide seven (7) days notice of the |
18 | time and place of the hearing to the parties. The hearing shall be informal, and the rules of evidence |
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1 | prevailing in judicial proceedings shall be binding. Any and all documentary evidence and other |
2 | data deemed relevant by the arbitrators may be received in evidence. The arbitrators shall have the |
3 | power to administer oaths and to require by subpoena the attendance and testimony of witnesses, |
4 | and the production of books, records, and other evidence, relative or pertinent to the issues |
5 | presented to them for determination. The decision of the arbitrators shall be binding upon the parties |
6 | unless: |
7 | (i) In the event that suit has not been instituted, either party reserves his or her right to a |
8 | jury trial by giving notice of this reservation of right to the other party or parties and to the |
9 | arbitrators within sixty (60) days of the arbitrators award by certified mail return receipt requested; |
10 | or |
11 | (ii) In the event that suit has been instituted, either party files a request for a jury trial with |
12 | the court and with notice to the other party or parties within sixty (60) days of the arbitrator’s award. |
13 | If the case proceeds to trial subsequent to arbitration, the decision of the arbitrators shall not be |
14 | admissible; |
15 | (4) Statute of limitations. Notwithstanding the foregoing, a suit shall be instituted in order |
16 | to bring the action within any applicable statute of limitations, but the suit will be stayed until an |
17 | arbitrators award has been made or the case reached for trial; |
18 | (5) Agreements to arbitrate. Uninsured motorist contracts shall be governed by the |
19 | provisions of § 10-3-2. |
20 | (b) Every person who maintains motor vehicle liability insurance shall, when making an |
21 | application for a motor vehicle operator’s license, or the renewal of that license, or when registering |
22 | a motor vehicle, agree in writing on a form provided by the director of the department of |
23 | transportation to be bound by the provisions of this chapter. |
24 | SECTION 2. This act shall take effect upon passage. |
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LC005951 | |
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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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1 | This act would increase the minimum claim amount necessary to require a matter involving |
2 | motor vehicle liability be submitted to mandatory arbitration. |
3 | This act would take effect upon passage. |
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