PURPOSE: This regulation precludes insurers from issuing property and casualty insurance policies containing compulsory arbitration provisions. This regulation was adopted pursuant to the provisions of sections 374.045, 379.203 and 435.010, RSMo.

1. (1) Any contract or agreement entered into containing any clause or provision providing for an adjustment by arbitration shall not preclude any party or beneficiary under the contract or agreement from instituting suit or legal action on the contract at any time and the compliance with the clause or provision shall not be a condition precedent to the right to bring or recover in the action. A party is bound by an arbitration provision only when s/he elects to arbitrate and a lawful and binding arbitration follows.
2. (2) No automobile policy written shall contain an arbitration clause applicable to disputed claims under uninsured motorist coverage and any provision to the contrary shall be void and of no effect as of August 22, 1974.

AUTHORITY: sections 374.045, 379.203 and 20 CSR 500-1 435.010, RSMo 1994.* This rule was previously filed as 4 CSR 190-16.120. Original rule filed Aug. 12, 1974, effective Aug. 22, 1974. *Original authority: 374.045, RSMo 1967, amended 1993 and 379.203, RSMo 1967, amended 1971, 1972, 1982, 1991. Kisling v. MFA Mutual Ins. Co., 399 SW2d 245 (Mo. App. 1966). Policy exclusion making uninsured motorist coverage inapplicable to bodily injury where insured, without consent of insurance company, makes settlement with party who may be legally liable, therefor, held against public policy and invalid.