80-2-243. Disputed appraisal.
80-2-243. Disputed appraisal. (1) If the party that has sustained the loss is dissatisfied with and refuses to accept the adjustment made by the official appraiser, the party has the right to appeal to the board of hail insurance. The party shall make the appeal by certified mail within 10 days after receiving the adjustment offer of the board in writing. Also the board may require the posting of a cash bond of $25 with the request for reappraisal of the first adjustment. If the board requires the posting of the $25 bond, the board may retain it if an increase is not allowed. If an increase is obtained, the board shall return the bond to the claimant.
(2) If the adjuster who makes the second appraisal fails to secure an agreement, the claimant may submit the matter to arbitration as provided in this subsection or sue the board in the district court of the county where the loss occurred, within 90 days from the date of receipt of written notice of the second appraisal. The actions must be trials de novo and the Montana Rules of Civil Procedure apply. If a claimant demands arbitration, the claimant shall, if required by the board, furnish a cash bond to the board in the sum of $50, which must accompany the application. If there is not sufficient allowance made to any claimant after arbitration to cover the cost of arbitration without the use of the $50 bond, the board may use a part or all of the cash bond. If the claimant secures an increase, the bond must be promptly returned to the claimant. If the claimant elects to submit the matter to arbitration, the claimant shall then appoint one disinterested person as appraiser, the official appraiser shall appoint another person as appraiser, the two shall select a third disinterested person, and the three shall then proceed to adjust the loss in the same manner as specified in 80-2-242. The judgment of the majority is the judgment of the appraisers and is binding upon both parties as the final determination of the loss.
(3) (a) If the insured does not recover a greater sum than allowed by the official appraiser in the first instance, the insured shall pay the expenses of the three appraisers and their witnesses in making the adjustment, but if the insured is awarded a larger sum, the expenses must be paid by the board.
(b) If the insured is required to pay the expenses of the reappraisement as provided in subsection (3)(a), the board i may deduct the amount of the expenses from the amount allowed the insured before making settlement for the loss.
(4) The board shall examine all reports of appraisers and verify the reports and adjust all losses and for those purposes may order hearings, subpoena witnesses, conduct examinations, and do all things necessary to secure a fair and impartial appraisement of losses by hail.
History: En. Sec. 9, Ch. 169, L. 1917; amd. Sec. 6, Ch. 34, L. 1919; re-en. Sec. 360, R.C.M. 1921; amd. Sec. 10, Ch. 40, L. 1923; re-en. Sec. 360, R.C.M. 1935; amd. Sec. 4, Ch. 33, L. 1949; amd. Sec. 1, Ch. 69, L. 1963; amd. Sec. 76, Ch. 147, L. 1963; amd. Sec. 1, Ch. 170, L. 1967; R.C.M. 1947, 82-1516; amd. Sec. 13, Ch. 691, L. 1983; amd. Sec. 2574, Ch. 56, L. 2009.