The bill amends Section 27-10.3-1 of the General Laws in Chapter 27-10.3 entitled "Motor Vehicle Insurance Mandatory Arbitration Provision." It introduces changes to the arbitration process for claims resulting from motor vehicle liability. The significant amendment is the increase in the maximum claim amount for mandatory arbitration from fifty thousand dollars ($50,000) to one hundred thousand dollars ($100,000). This means that any person suffering a loss due to motor vehicle liability can choose to submit their claim to arbitration if the claim is for $100,000 or less.

Other provisions within the arbitration process remain largely unchanged, such as the selection of an arbitrator from the court annexed arbitration program, the sharing of arbitration expenses, the informal hearing procedures, and the binding nature of the arbitrator's decision unless a party reserves the right to a jury trial or files a request for a jury trial within 60 days of the arbitrator's award. The bill also maintains that a suit must be instituted to comply with any applicable statute of limitations, but it will be stayed until the arbitration award is made or the case is ready for trial. The act would take effect upon passage, indicating that these changes would be implemented immediately once the bill is enacted.

Statutes affected:
7558: 27-10.3-1