An action was brought by Beavers against the Pacific National Fire Insurance Company, based upon a fire insurance policy. The court dismissed the petition on oral motion. The policy provided for arbitration. The defendant called for arbitration. Arbitrators were appointed, one by the plaintiff, one by the defendant, and upon disagreement between the two, a third arbitrator by the judge of the city court. The arbitrators assessed $375 as damages caused by the fire. This arbitration and award was returned within four months. The policy contained a limitation of one year from the inception of the loss within which to bring an action on it. The plaintiff did not begin the action in the instant case until after twelve months--fifteen months after the fire or the inception of the loss. The plaintiff contends that, since the defendant called for arbitration as specified in the policy, the limitation for bringing the suit was thus extended for twelve months from the date of the arbitration proceedings. Held:

We think that this contention is correct, by virtue of the following authorities: "Where a policy of insurance provides that no action thereon shall be maintainable unless commenced within twelve months next after the happening of the loss, and the parties enter into such an agreement for the appraisal of the loss, the agreement to thus adjust their differences tolls the limitation provided in the contract, and the period of limitation does not run during the pendency of the appraisement proceeding." Insurance Co. of North America v. Folds, 35 Ga. App. 720 (3) (135 S. E. 107); also National Union Fire Ins. Co. v. Ozburn, 57 Ga. App. 90 (194 S. E. 756).

The court therefore erred in dismissing the action on this ground.