Register v. White

Summary

The North Carolina Supreme Court held that a three-year contractual time limit for demanding arbitration of an underinsured motorist dispute begins when the insured's right to demand arbitration arises, not when the underlying bodily injury occurs. Because the liability insurer tendered its policy limits on 8 August 2001, the plaintiff's 24 September 2001 arbitration demand was timely. The court affirmed the Court of Appeals.

Holdings

1. The three-year time limit for demanding arbitration under the UIM policy begins to run when the insured acquires the contractual right to demand arbitration, which occurs no earlier than exhaustion of the applicable liability insurance limits and the existence of a UIM dispute.
2. Register's 24 September 2001 demand for arbitration was timely because the tortfeasor's insurer did not tender its policy limits until 8 August 2001, so the three-year contractual period had not expired.

Questions Presented

1. Whether the three-year time limit for demanding arbitration under the UIM policy began to run when Register's bodily injury occurred or when her contractual right to demand arbitration arose after exhaustion of the tortfeasor's liability coverage.
2. Whether Register's 24 September 2001 arbitration demand was contractually time-barred.

Disposition

affirmed