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5 | 5 | | 2025 -- H 5932 |
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6 | 6 | | ======== |
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7 | 7 | | LC002289 |
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8 | 8 | | ======== |
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9 | 9 | | S T A T E O F R H O D E I S L A N D |
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10 | 10 | | IN GENERAL ASSEMBLY |
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11 | 11 | | JANUARY SESSION, A.D. 2025 |
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12 | 12 | | ____________ |
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13 | 13 | | |
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14 | 14 | | A N A C T |
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15 | 15 | | RELATING TO INSURANCE -- MOTOR VEHICLE INSURANCE -- MANDATORY |
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16 | 16 | | ARBITRATION PROVISION |
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17 | 17 | | Introduced By: Representatives Dawson, Solomon, and Hull |
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18 | 18 | | Date Introduced: February 28, 2025 |
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19 | 19 | | Referred To: House Judiciary |
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20 | 20 | | |
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21 | 21 | | |
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22 | 22 | | It is enacted by the General Assembly as follows: |
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23 | 23 | | SECTION 1. Section 27-10.3-1 of the General Laws in Chapter 27-10.3 entitled "Motor 1 |
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24 | 24 | | Vehicle Insurance — Mandatory Arbitration Provision" is hereby amended to read as follows: 2 |
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25 | 25 | | 27-10.3-1. Arbitration provision. 3 |
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26 | 26 | | (a) Every contract of motor vehicle liability insurance, issued in the state by an insurance 4 |
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27 | 27 | | carrier authorized to do business in the state, shall contain the following provisions: 5 |
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28 | 28 | | (1) Any person, referred to in this section as “the plaintiff,” suffering a loss, allegedly 6 |
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29 | 29 | | resulting out of the ownership, maintenance, or use of a motor vehicle by an insured or self-insured, 7 |
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30 | 30 | | and allegedly resulting from liability imposed by law for property damage, bodily injury, or death, 8 |
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31 | 31 | | may, at his or her election, whenever the claim is for fifty thousand dollars ($50,000) one hundred 9 |
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32 | 32 | | thousand dollars ($100,000) or less, submit the matter to arbitration pursuant to chapter 3 of title 10 |
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33 | 33 | | 10; 11 |
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34 | 34 | | (2) Selection of arbitrator. After submission to arbitration by the plaintiff, one arbitrator 12 |
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35 | 35 | | shall be selected from the list of qualified arbitrators of the court annexed arbitration program of 13 |
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36 | 36 | | the superior court in the same manner as arbitrators are selected in accordance with the rules of that 14 |
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37 | 37 | | program. Each party shall share the expenses of arbitration in accordance with the rules of the court 15 |
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38 | 38 | | annexed arbitration program; 16 |
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39 | 39 | | (3) Hearings. The arbitrator shall call a hearing and provide seven (7) days notice of the 17 |
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40 | 40 | | time and place of the hearing to the parties. The hearing shall be informal, and the rules of evidence 18 |
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42 | 42 | | |
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43 | 43 | | LC002289 - Page 2 of 3 |
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44 | 44 | | prevailing in judicial proceedings shall be binding. Any and all documentary evidence and other 1 |
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45 | 45 | | data deemed relevant by the arbitrators may be received in evidence. The arbitrators shall have the 2 |
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46 | 46 | | power to administer oaths and to require by subpoena the attendance and testimony of witnesses, 3 |
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47 | 47 | | and the production of books, records, and other evidence, relative or pertinent to the issues 4 |
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48 | 48 | | presented to them for determination. The decision of the arbitrators shall be binding upon the parties 5 |
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49 | 49 | | unless: 6 |
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50 | 50 | | (i) In the event that suit has not been instituted, either party reserves his or her right to a 7 |
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51 | 51 | | jury trial by giving notice of this reservation of right to the other party or parties and to the 8 |
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52 | 52 | | arbitrators within sixty (60) days of the arbitrators award by certified mail return receipt requested; 9 |
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53 | 53 | | or 10 |
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54 | 54 | | (ii) In the event that suit has been instituted, either party files a request for a jury trial with 11 |
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55 | 55 | | the court and with notice to the other party or parties within sixty (60) days of the arbitrator’s award. 12 |
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56 | 56 | | If the case proceeds to trial subsequent to arbitration, the decision of the arbitrators shall not be 13 |
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57 | 57 | | admissible; 14 |
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58 | 58 | | (4) Statute of limitations. Notwithstanding the foregoing, a suit shall be instituted in order 15 |
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59 | 59 | | to bring the action within any applicable statute of limitations, but the suit will be stayed until an 16 |
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60 | 60 | | arbitrators award has been made or the case reached for trial; 17 |
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61 | 61 | | (5) Agreements to arbitrate. Uninsured motorist contracts shall be governed by the 18 |
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62 | 62 | | provisions of § 10-3-2. 19 |
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63 | 63 | | (b) Every person who maintains motor vehicle liability insurance shall, when making an 20 |
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64 | 64 | | application for a motor vehicle operator’s license, or the renewal of that license, or when registering 21 |
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65 | 65 | | a motor vehicle, agree in writing on a form provided by the director of the department of 22 |
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66 | 66 | | transportation to be bound by the provisions of this chapter. 23 |
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67 | 67 | | SECTION 2. This act shall take effect upon passage. 24 |
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68 | 68 | | ======== |
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69 | 69 | | LC002289 |
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72 | 72 | | |
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73 | 73 | | LC002289 - Page 3 of 3 |
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74 | 74 | | EXPLANATION |
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75 | 75 | | BY THE LEGISLATIVE COUNCIL |
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76 | 76 | | OF |
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77 | 77 | | A N A C T |
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78 | 78 | | RELATING TO INSURANCE -- MOTOR VEHICLE INSURANCE -- MANDATORY |
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79 | 79 | | ARBITRATION PROVISION |
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80 | 80 | | *** |
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81 | 81 | | This act would increase the minimum claim amount necessary to require a matter involving 1 |
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82 | 82 | | motor vehicle liability be submitted to mandatory arbitration. 2 |
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83 | 83 | | This act would take effect upon passage. 3 |
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84 | 84 | | ======== |
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85 | 85 | | LC002289 |
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