                                 CODE OF VIRGINIA

PHYSICAL DAMAGE ARBITRATION BETWEEN INSURERS; ALTERNATE FORUMS (§ 38.2-2231)

A. Except as otherwise provided hereafter, insurers shall arbitrate and settle
all disputed claims made for automobile physical damage between them in
accordance with the terms of the Nationwide Intercompany Arbitration Agreement,
or any successor thereto, as adopted and from time to time amended by its
members, and the rules promulgated pursuant to the Agreement, unless the parties
mutually agree, on a per case basis, to use another forum, which forum may
include a court of competent jurisdiction, in which case the claim shall be
arbitrated or tried in that alternate forum. Mandatory arbitration of disputed
claims shall be limited solely to the issues of liability and damages.

B. Every automobile liability or physical damage insurer doing business in the
Commonwealth shall be a member of the Nationwide Intercompany Arbitration
Agreement, or any successor thereto, sponsored by the Committee on Insurance
Arbitration. However, if any such insurer is unable to furnish proof of its
membership in such agreement, an action may be asserted in a court of competent
jurisdiction.

HISTORY: 1994, c. 346; 1999, c. 514.