AN ACT RELATING TO INSURANCE -- MOTOR VEHICLE INSURANCE -- MANDATORY ARBITRATION PROVISION (Increases the minimum claim amount necessary to require a matter involving motor vehicle liability be submitted to mandatory arbitration.)

S3194

2026 -- S 3194
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LC005217
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
RELATING TO INSURANCE -- MOTOR VEHICLE INSURANCE -- MANDATORY
ARBITRATION PROVISION

Introduced By:
Senators LaMountain, Burke, Famiglietti, Bissaillon, and Dimitri

Date Introduced:
April 03, 2026

Referred To:
Senate Judiciary
It is enacted by the General Assembly as follows:
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SECTION 1. Section 27-10.3-1 of the General Laws in Chapter 27-10.3 entitled "Motor
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Vehicle Insurance — Mandatory Arbitration Provision" is hereby amended to read as follows:
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27-10.3-1. Arbitration provision.
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(a) Every contract of motor vehicle liability insurance, issued in the state by an insurance
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carrier authorized to do business in the state, shall contain the following provisions:
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(1) Any person, referred to in this section as “the plaintiff,” suffering a loss, allegedly
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resulting out of the ownership, maintenance, or use of a motor vehicle by an insured or self-insured,
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and allegedly resulting from liability imposed by law for property damage, bodily injury, or death,
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may, at the plaintiff's election, whenever the claim is for
fifty thousand dollars ($50,000)

one
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hundred thousand dollars ($100,000)
or less, submit the matter to arbitration pursuant to chapter 3
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of title 10;
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(2)
Selection of arbitrator.
After submission to arbitration by the plaintiff, one arbitrator
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shall be selected from the list of qualified arbitrators of the court annexed arbitration program of
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the superior court in the same manner as arbitrators are selected in accordance with the rules of that
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program. Each party shall share the expenses of arbitration in accordance with the rules of the court
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annexed arbitration program;
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(3)
Hearings.
The arbitrator shall call a hearing and provide seven (7) days’ notice of the
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time and place of the hearing to the parties. The hearing shall be informal, and the rules of evidence

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prevailing in judicial proceedings shall be binding. Any and all documentary evidence and other
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data deemed relevant by the arbitrator may be received in evidence. The arbitrator shall have the
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power to administer oaths and to require by subpoena the attendance and testimony of witnesses,
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and the production of books, records, and other evidence, relative or pertinent to the issues
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presented to them for determination. The decision of the arbitrator shall be binding upon the parties
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unless:
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(i) In the event that suit has not been instituted, either party reserves the party’s right to a
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jury trial by giving notice of this reservation of right to the other party or parties and to the arbitrator
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within sixty (60) days of the arbitrator’s award by certified mail return receipt requested; or
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(ii) In the event that suit has been instituted, either party files a request for a jury trial with
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the court and with notice to the other party or parties within sixty (60) days of the arbitrator’s award.
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If the case proceeds to trial subsequent to arbitration, the decision of the arbitrator shall not be
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admissible;
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(4)
Statute of limitations.
Notwithstanding the foregoing, a suit shall be instituted in order
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to bring the action within any applicable statute of limitations, but the suit will be stayed until an
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arbitrator’s award has been made or the case reached for trial;
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(5)
Agreements to arbitrate.
Uninsured motorist contracts shall be governed by the
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provisions of § 10-3-2.
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(b) Every person who maintains motor vehicle liability insurance shall, when making an
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application for a motor vehicle operator’s license, or the renewal of that license, or when registering
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a motor vehicle, agree in writing on a form provided by the director of the department of
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transportation to be bound by the provisions of this chapter.
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SECTION 2. This act shall take effect upon passage.
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LC005217
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO INSURANCE -- MOTOR VEHICLE INSURANCE -- MANDATORY
ARBITRATION PROVISION
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This act would increase the minimum claim amount necessary to require a matter involving
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motor vehicle liability be submitted to mandatory arbitration.
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This act would take effect upon passage.
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LC005217
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