2020 -- S 2682

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LC004877

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2020

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A N   A C T

RELATING TO INSURANCE - MOTOR VEHICLE INSURANCE - MANDATORY

ARBITRATION PROVISION

     

     Introduced By: Senator Mark P. McKenney

     Date Introduced: February 27, 2020

     Referred To: Senate 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.

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     (a) Every contract of motor vehicle liability insurance, issued in the state by an insurance

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carrier authorized to do business in the state, shall 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 or self-insured,

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and 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 fifty thousand dollars ($50,000) or less, submit

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the matter to arbitration pursuant to chapter 3 of title 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 that

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

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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 evidence

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

 

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data deemed relevant by the arbitrators may be received in evidence. The arbitrators shall have the

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power to administer oaths and to require by subpoena the attendance and testimony of witnesses,

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

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

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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 arbitrator’s award by email, delivery receipt

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requested. In the event a party does not have email, reservation of rights shall be by certified mail,

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return receipt requested; or

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

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

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If the case proceeds to trial subsequent to arbitration, the decision of the arbitrators shall not be

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admissible;

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

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

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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 § 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 registering

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

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transportation to be bound by the provisions of this chapter.

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     SECTION 2. This act shall take effect upon passage.

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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 allow a party subject to the mandatory arbitration provisions of the motor

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vehicle insurance law to provide notice of his or her reservation of rights to a jury trial by email,

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delivery receipt requested.

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     This act would take effect upon passage.

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