26.1-22-11. Arbitration of value or loss

26.1-22-11. Arbitration of value or loss 1. If the office and the state agency, political subdivision, or winter show having custody of any property disagree about the insurable value of the property or the amount of loss insured, the office and the state agency, political subdivision, or winter show may agree to have the value or loss determined by a competent, disinterested contractor, architect, experienced appraiser, appraisal company, or a member of those respective professional boards at the expense of the state agency, political subdivision, or winter show owning the property. 2. If the office and the state agency, political subdivision, or winter show are unable to resolve a disagreement under subsection 1, the determination must be arbitrated as provided in this subsection. a. The office and the state agency, political subdivision, or winter show having custody of the property each shall select one competent, disinterested contractor, architect, experienced appraiser, appraisal company, or a member of those respective professional boards. The two selected arbitrators shall select a third arbitrator with similar qualifications. b. The three arbitrators shall determine the insurable value of the property or the amount of loss insured within thirty days after the selection of the first two arbitrators. Upon determination by a majority of the arbitrators, the arbitrators shall notify the parties of the determination in writing. The determination is binding on both parties. c. Each party to the dispute shall pay the expenses of the arbitrator chosen by the party. The expenses of the third arbitrator must be paid equally by both parties to the dispute. d. While the value is being determined under this section, property must continue to be valued in the same amount as previously determined, or in case of new buildings or property, in the amount determined by the office. 3. This section applies to existing property, new construction, and property with a change in value.