§ 27-10.3-1. Arbitration provision.
(a) Every contract of motor vehicle liability insurance, issued in the state by an insurance
carrier authorized to do business in the state, shall contain the following provisions:
(1) Any person, referred to in this section as "the plaintiff,� suffering a loss, allegedly
resulting out of the ownership, maintenance, or use of a motor vehicle by an insured
or self-insured, and allegedly resulting from liability imposed by law for property
damage, bodily injury, or death, may, at the plaintiff's election, whenever the claim
is for fifty thousand dollars ($50,000) or less, submit the matter to arbitration
pursuant to chapter 3 of title 10;
(2) Selection of arbitrator. After submission to arbitration by the plaintiff, one arbitrator shall be selected
from the list of qualified arbitrators of the court annexed arbitration program of
the superior court in the same manner as arbitrators are selected in accordance with
the rules of that program. Each party shall share the expenses of arbitration in accordance
with the rules of the court annexed arbitration program;
(3) Hearings. The arbitrator shall call a hearing and provide seven (7) days' notice of the time
and place of the hearing to the parties. The hearing shall be informal, and the rules
of evidence prevailing in judicial proceedings shall be binding. Any and all documentary
evidence and other data deemed relevant by the arbitrator may be received in evidence.
The arbitrator shall have the power to administer oaths and to require by subpoena
the attendance and testimony of witnesses, and the production of books, records, and
other evidence, relative or pertinent to the issues presented to them for determination.
The decision of the arbitrator shall be binding upon the parties unless:
(i) In the event that suit has not been instituted, either party reserves the party's
right to a jury trial by giving notice of this reservation of right to the other party
or parties and to the arbitrator within sixty (60) days of the arbitrator's award
by certified mail return receipt requested; or
(ii) In the event that suit has been instituted, either party files a request for a jury
trial with the court and with notice to the other party or parties within sixty (60)
days of the arbitrator's award. If the case proceeds to trial subsequent to arbitration,
the decision of the arbitrator shall not be admissible;
(4) Statute of limitations. Notwithstanding the foregoing, a suit shall be instituted in order to bring the action
within any applicable statute of limitations, but the suit will be stayed until an
arbitrator's award has been made or the case reached for trial;
(5) Agreements to arbitrate. Uninsured motorist contracts shall be governed by the provisions of § 10-3-2.
(b) Every person who maintains motor vehicle liability insurance shall, when making an
application for a motor vehicle operator's license, 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 of transportation to be bound by the provisions of this chapter.