00                            HOUSE BILL NO. 395                                                                          
01 "An Act requiring arbitration of uninsured or underinsured motorist coverage and                                        
02 damage disputes."                                                                                                       
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1. AS 21.89.020 is amended by adding a new subsection to read:                                           
05            (j)  Notwithstanding AS 21.89.035, an automobile liability insurance policy                                  
06       that includes uninsured or underinsured motorist coverage must contain a provision                                
07       stating that, if an insured person and an insurer do not agree to the insured person's                            
08       right to receive damages or to the amount of damages to which the insured person has                              
09       a right under uninsured or underinsured motorist coverage, then, at the written request                           
10       of either the insured person or the insurer, the disagreement will be settled by                                  
11       arbitration under AS 09.43.300 - 09.43.595 (Revised Uniform Arbitration Act), except                              
12       to the extent otherwise provided in this subsection. The arbitration must take place in                           
13       the judicial district where the insured person resides. The insured person and the                                
14       insurer shall each select one arbitrator. The two arbitrators shall select a third                                

01       arbitrator. If the two arbitrators cannot agree on a third arbitrator within 30 days, at the                      
02       request of either the insured person or the insurer, the presiding judge of the judicial                          
03       district where the insured person resides shall select the third arbitrator.                                      
04    * Sec. 2. AS 21.89.035 is amended to read:                                                                         
05            Sec. 21.89.035. Mandatory appraisal. Except as provided under                                            
06       AS 21.89.020(j), a [A] motor vehicle or similar policy, a policy providing property                           
07       coverage, or any other policy providing first party property, casualty, or inland marine                          
08       coverage, issued or delivered in this state, must include an appraisal clause providing a                         
09       contractual means to resolve a dispute between the insured and the insurer over the                               
10       value of a covered first party loss for real property, personal property, business                                
11       property, or similar risks. If the insured and the insurer fail to agree on the amount of a                       
12       covered first party loss, either may make written demand upon the other to submit the                             
13       dispute for appraisal. Within 10 days of the written demand, the insured and insurer                              
14       must notify the other of the competent appraiser each has selected. The two appraisers                            
15       will promptly choose a competent and impartial umpire. Not later than 15 days after                               
16       the umpire has been chosen, unless the time period is extended by the umpire, each                                
17       appraiser will separately state in writing the amount of the loss. If the appraisers                              
18       submit a written report of agreement on the amount of the loss, the agreed amount will                            
19       be binding upon the insured and insurer. If the appraisers fail to agree, the appraisers                          
20       will promptly submit their differences to the umpire. A decision agreed to by one of                              
21       the appraisers and the umpire will be binding upon the insured and insurer. All                                   
22       expenses and fees, not including counsel or adjuster fees, incurred because of the                                
23       appraisal shall be paid as determined by the umpire. Except as specifically provided,                             
24       nothing in this section is intended to or shall in any manner limit or restrict the rights                        
25       of insureds or insurers or confer any rights to an insured or insurer.                                            
26    * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to                          
27 read:                                                                                                                   
28       APPLICABILITY. This Act applies to insurance policies or contracts issued or                                      
29 renewed on or after the effective date of this Act.