A BILL TO BE ENTITLED
AN ACT to amend the rules of evidence regarding insurance admissibility and to allow for binding arbitration in certain civil actions.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 8C‑1, Rule 414 is repealed.
SECTION 2.  G.S. 8C‑1, Rule 411 reads as rewritten:
"Rule 411. Liability insurance.
(a)	Evidence that a person was or was not insured against liability is not admissible upon the issue whether he acted negligently or otherwise wrongfully. This rule does not require the exclusion of evidence of insurance against liability or coverage limits when offered for another purpose, such as proof of agency, ownership, or control, or bias or prejudice of a witness.
(b)	Nothing in this rule shall be construed to infer that the term "insurance" as used in this rule, or the introduction of evidence of other forms of "insurance," including health insurance, disability insurance, or other forms of benefits that may be characterized as "insurance," shall be barred by this rule, with the exception of parties introducing evidence of any payments made by insurance under the collateral source rule."
SECTION 3.  Article 5 of Chapter 7A of the General Statutes is amended by adding a new section to read:
"§ 7A‑37.2.  Binding arbitration in certain civil actions.
(a)	In addition to the nonbinding process set forth in G.S. 7A‑37.1 and rules adopted by the Supreme Court of North Carolina in accordance with G.S. 7A‑37.1(b), any named party to an action may elect binding arbitration when all of the following conditions exist:
(1)	An admission of negligence by all named defendants to the action that is signed by all named parties.
(2)	An express limitation by the named party with the burden of proof on damages associated with the action that all alleged damages shall not exceed the amount in controversy set forth in G.S. 7A‑243 for the trial court.
(b)	Binding arbitration under this section extinguishes the rights of named plaintiffs to any recovery beyond the insurance coverage limits pertinent to the action."
SECTION 4.  This act is effective when it becomes law and applies to civil actions in litigation or commenced on or after that date.