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 elect to submit their claim to arbitration if the claim is for $100,000 or less, rather than the previous limit of $50,000.

The bill also outlines the procedures for selecting an arbitrator, conducting hearings, and the binding nature of the arbitrator's decision. It specifies that the decision of the arbitrators shall be binding unless either party reserves the right to a jury trial or files a request for a jury trial within 60 days of the arbitrator's award. Additionally, the bill states that uninsured motorist contracts shall be governed by the provisions of § 10-3-2 and requires every person who maintains motor vehicle liability insurance to agree in writing to be bound by the provisions of this chapter when applying for or renewing a driver's license or registering a vehicle. The act is set to take effect upon passage.

Statutes affected:
3042: 27-10.3-1