Substitute House Bill No. 6435, also known as Public Act No. 25-131, amends the arbitration process for disputes between claimants and insurance companies regarding automobile physical damage and property damage liability claims. The bill establishes an independent arbitration procedure managed by the Division of Consumer Affairs, which will only apply to disputes involving private passenger motor vehicles where liability and coverage are not in dispute. Key provisions include a requirement for insurance companies to participate in the arbitration process, a $20 filing fee for each party, and a stipulation that the insurance company must pay the undisputed amount of the claim upon referral to arbitration. The bill also outlines the appointment of arbitrators, the scheduling of hearings, and the issuance of subpoenas by the commissioner.

Significant changes introduced by the bill include the requirement that if the arbitrator's decision favors the claimant, it must include specific remedies such as a 15% interest on the disputed amount retroactive to the date of payment for the undisputed claim. Additionally, the arbitrator may require the insurance company to reimburse the department for costs incurred during the arbitration unless the claimant rejected a pre-arbitration offer of equal or greater value than the arbitration award. The bill also mandates that the department maintain records of each dispute and compile annual statistics for the General Assembly. Overall, the bill aims to streamline the arbitration process and enhance the rights of claimants in automobile insurance disputes.