§ 27-10.3-1 - Arbitration provision. - Rhode Island Statutes

SECTION 27-10.3-1

   § 27-10.3-1  Arbitration provision. –(a) Every contract of motor vehicle liability insurance, issued in the state byan insurance carrier authorized to do business in the state, shall contain thefollowing provisions:

   (1) Any person, referred to in this section as "theplaintiff," suffering a loss, allegedly resulting out of the ownership,maintenance, or use of a motor vehicle by an insured, and allegedly resultingfrom liability imposed by law for property damage, bodily injury, or death,may, at his or her election, whenever the claim is for twenty-five thousanddollars ($25,000) or less, submit the matter to arbitration pursuant to chapter3 of title 10;

   (2) Selection of arbitrator. After submission toarbitration by the plaintiff, one arbitrator shall be selected from the list ofqualified arbitrators of the court annexed arbitration program of the superiorcourt in the same manner as arbitrators are selected in accordance with therules of that program. Each party shall share the expenses of arbitration inaccordance with the rules of the court annexed arbitration program;

   (3) Hearings. The arbitrator shall call a hearing andprovide seven (7) days notice of the time and place of the hearing to theparties. The hearing shall be informal, and the rules of evidence prevailing injudicial proceedings shall be binding. Any and all documentary evidence andother data deemed relevant by the arbitrators may be received in evidence. Thearbitrators shall have the power to administer oaths and to require by subpoenathe attendance and testimony of witnesses, and the production of books,records, and other evidence, relative or pertinent to the issues presented tothem for determination. The decision of the arbitrators shall be binding uponthe parties unless:

   (i) In the event that suit has not been instituted, eitherparty reserves his or her right to a jury trial by giving notice of thisreservation of right to the other party or parties and to the arbitratorswithin sixty (60) days of the arbitrators award by certified mail returnreceipt requested; or

   (ii) In the event that suit has been instituted, either partyfiles a request for a jury trial with the court and with notice to the otherparty or parties within sixty (60) days of the arbitrator's award. If the caseproceeds to trial subsequent to arbitration, the decision of the arbitratorsshall not be admissible;

   (4) Statute of limitations. Notwithstanding theforegoing, a suit shall be instituted in order to bring the action within anyapplicable statute of limitations, but the suit will be stayed until anarbitrators award has been made or the case reached for trial;

   (5) Agreements to arbitrate. Uninsured motoristcontracts shall be governed by the provisions of § 10-3-2.

   (b) Every person who maintains motor vehicle liabilityinsurance shall, when making an application for a motor vehicle operator'slicense, or the renewal of that license, or when registering a motor vehicle,agree in writing on a form provided by the director of the department oftransportation to be bound by the provisions of this chapter.