1.1                          A bill for an act 
  1.2             relating to insurance; changing no-fault arbitration 
  1.3             provisions; amending Minnesota Statutes 2002, section 
  1.4             65B.525. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 2002, section 65B.525, is 
  1.7   amended to read: 
  1.8      65B.525 [ARBITRATION PROCEDURE; RULES OF COURT.] 
  1.9      Subdivision 1.  [NO-FAULT ARBITRATION.] Except as otherwise 
  1.10  provided in section 72A.327, the supreme court and the several 
  1.11  courts of general trial jurisdiction of this state shall by 
  1.12  rules of court or other constitutionally allowable device, 
  1.13  provide for the mandatory submission to binding arbitration at 
  1.14  the request of either party of all cases at issue where the 
  1.15  claim at the commencement of arbitration time of hearing is in 
  1.16  an the total amount of $10,000 or less against any insured's 
  1.17  reparation obligor for no-fault benefits or comprehensive or 
  1.18  collision damage coverage.  
  1.19     Subd. 2.  [ARBITRATION; AGREEMENT OF PARTIES.] The rules of 
  1.20  court may provide that cases which are not at issue, whether or 
  1.21  not suit has been filed, may be referred to arbitration by 
  1.22  agreement of reference signed by counsel for both sides, or by 
  1.23  the parties themselves.  Such agreement of reference shall 
  1.24  define the issues to be arbitrated and, shall also contain any 
  1.25  stipulations with respect to facts submitted or agreed or 
  2.1   defenses waived.  In such cases, the agreement of reference 
  2.2   shall take the place of the pleadings in the case and be filed 
  2.3   of record. 
  2.4      Subd. 3.  [ITEMIZATION; FULL PAYMENT.] All arbitration 
  2.5   awards must be itemized.  A partial award of medical benefits 
  2.6   rendered by an arbitrator under this section and paid by an 
  2.7   obligor will be considered full and final payment, and the 
  2.8   injured party is not liable for, nor may the provider bill the 
  2.9   injured party for, charges that are not part of the award.  This 
  2.10  subdivision does not apply to charges for health care that are 
  2.11  not related to the accident. 
  2.12     Subd. 4.  [NOTICE TO PROVIDERS.] The itemization of medical 
  2.13  services claims required under the rules promulgated by the 
  2.14  supreme court must include the names and addresses of all health 
  2.15  care providers whose charges are the subject of the claims.  
  2.16  Within ten business days after receipt of the itemization, the 
  2.17  administrator of arbitration under this section must send a copy 
  2.18  of the petition and itemization to each health care provider 
  2.19  whose charges are the subject of claims, together with a notice 
  2.20  of the content of subdivision 3 and of the provider's right to 
  2.21  participate as a party to the proceeding.  The notice must 
  2.22  explain to the provider what steps the provider must take in 
  2.23  order to participate. 
  2.24     Sec. 2.  [EFFECTIVE DATE.] 
  2.25     Section 1 is effective January 1, 2004, and applies to 
  2.26  policies issued or renewed on or after that date.