PRIOR PRINTER'S NOS. 1209, 2536, 2775 PRINTER'S NO. 2787
No. 1083 Session of 1979
INTRODUCED BY MESSRS. FISHER, KOWALYSHYN, FREIND, D. R. WRIGHT,
LEHR, MOWERY, POTT, J. L. WRIGHT, JR., CESSAR, POLITE,
GOODMAN, CALTAGIRONE, MRS. M. H. GEORGE, MESSRS. REED, BROWN,
COCHRAN, ANDERSON, ARMSTRONG, MRS. ARTY, MESSRS. BITTLE,
BURD, BRUNNER, CIMINI, MRS. M. R. CLARK, MESSRS. DORR, GALLEN,
GEESEY, GOEBEL, HALVERSON, PICCOLA, PUNT, SALVATORE MISS
SIRIANNI, MESSRS. SCHEAFFER, ZORD, S. E. HAYES, JR., MRS.
HONAMAN, MESSRS. KNEPPER, MADIGAN, MILLER, NOYE, GRIECO,
PETERSON, WEIDNER, BRANDT, A. C. FOSTER, JR., W. W. FOSTER,
McCLATCHY, D. M. O'BRIEN, SPENCER, L. E. SMITH, PYLES, THOMAS,
VROON, WILSON, WHITE, YAHNER, E. R. LYNCH, MACKOWSKI, E. H.
SMITH, HASAY, GRUPPO, PITTS, DIETZ AND MRS. E. Z. TAYLOR,
APRIL 25, 1979
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
JANUARY 29, 1980
AN ACT
1 Amending Title 42 (Judiciary and Judicial Procedure) of the
2 Pennsylvania Consolidated Statutes, adding provisions
3 relating to product liability actions.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Subchapter B of Chapter 55 of Title 42, act of
7 November 25, 1970 (P.L.707, No.230), known as the Pennsylvania
8 Consolidated Statutes, is amended by adding a section to read:
9 § 5537. Product liability actions.
10 (a) General 12-year statute of repose.--No product liability
11 action, as defined in section 8352 (relating to definitions),
12 may be brought more than 12 years from the time the person who
1 is primarily responsible for manufacturing the final product
2 parted with its possession and control, or sold it, whichever
3 occurred last.
4 (b) Two-year statute of limitation.--Any product liability
5 action accruing during or prior to the twelfth year from the
6 time set forth in subsection (a) shall be brought within two
7 years after the date on which that action accrued. However, this
8 subsection shall not be construed to alter any contrary
9 provision contained in Title 13 (relating to uniform commercial
10 code).
11 (c) Action for indemnity or contribution.--An action for
12 indemnity or contribution, other than an action arising out of a
13 written contract, shall be commenced within the period of time
14 set forth in this section, plus 180 days, unless extended by the
15 court, for good cause shown. An action for indemnity or
16 contribution may be commenced at the time the party seeking
17 indemnity or contribution is named a defendant in any action,
18 whether or not the party seeking indemnity or contribution has
19 come under a fixed obligation to pay damages in the product
20 liability action brought against it.
21 (d) Exceptions.--The limitation period provided in
22 subsection (a) shall not apply to:
23 (1) An action based solely upon any theory or theories
24 of negligence.
25 (2) An action based upon fraudulent misrepresentation,
26 fraudulent concealment or fraudulent nondisclosure by the
27 defendant.
28 (3) An action based upon a negotiated contractual
29 obligation which provides for a different period of
30 limitation in which the action may be commenced. However, if
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1 the negotiated contractual obligation provides for a shorter
2 period of limitation, such shorter period shall not be
3 applicable to the rights of persons who were not parties to
4 such negotiated contractual obligation. If the contract
5 provides for a shorter statute of repose, the shorter time
6 period shall be plainly disclosed either in writing or on the
7 product, provided no reduction or limitation of the period of
8 limitation stated in subsection (a) shall be applicable to
9 consumer goods as defined in 13 Pa.C.S. § 9109 (relating to
10 classification of goods; "consumer goods"; "equipment"; "farm
11 products"; "inventory").
12 (4) An action for damages to the person caused by the
13 use of or exposure to any product or substance which causes
14 injury of a latent or incremental nature which was not
15 manifested or reasonably detectable prior to the expiration
16 of the period set out in subsection (a). As used in this
17 paragraph, "injury of a latent or incremental nature" shall
18 include but not be limited to, injury caused by use of or
19 exposure to toxic or hazardous substances, radioactive
20 materials, ionizing radiation, any materials used in the
21 generation of nuclear energy or power, any controlled
22 substance, narcotic or new drug as defined by the act of
23 April 14, 1972 (P.L.233, No.64), known as "The Controlled
24 Substance, Drug, Device and Cosmetic Act," or any other drug.
25 Section 2. Chapter 83 of Title 42 is amended by adding a
26 subchapter to read:
27 CHAPTER 83
28 PARTICULAR RIGHTS AND IMMUNITIES
29 * * *
30 SUBCHAPTER E
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1 PRODUCT LIABILITY ACTIONS
2 Sec.
3 8351. Short title of subchapter.
4 8352. Definitions.
5 8353. Strict liability in tort.
6 8354. Permissible theories for product liability actions.
7 8355. Defense for product modification, alteration or
8 deterioration.
9 8356. Product misuse by persons other than defendant.
10 8357. Liability for product design or formula.
11 8358. Failure to specify, instruct or warn.
12 8359. Government standards. <--
13 8360 8359. State of the art.
14 8361 8360. Inadmissibility of evidence of improvements. <--
15 8362 8361. Evidence of collateral benefits. <--
16 8363 8362. Punitive and exemplary damages. <--
17 8364 8363. Comparative responsibility in product liability <--
18 actions.
19 § 8351. Short title of subchapter.
20 This subchapter shall be known and may be cited as the
21 "Product Liability Law."
22 § 8352. Definitions.
23 The following words and phrases when used in this subchapter
24 shall have, unless the context clearly indicates otherwise, the
25 meanings given to them in this section:
26 "Manufacturer." A seller of a product who manufactures the
27 finished product or any component substance or part thereof. The
28 term includes any seller who:
29 (1) has actual knowledge of a defect in a product;
30 (2) creates and furnishes a manufacturer with
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1 specifications for manufacturing the product when the
2 specifications are related to the alleged defect;
3 (3) otherwise exercises some substantial control over
4 all or a portion of the manufacturing process;
5 (4) alters or modifies a product in a substantial way
6 before it is sold to a user or consumer;
7 (5) is a business entity owned or controlled by the
8 manufacturer of the allegedly defective product;
9 (6) is the actual importer of the product, if the party
10 instituting an action pursuant to this subchapter is unable
11 to obtain valid in personam jurisdiction over a foreign
12 product manufacturer; or
13 (7) sells a product manufactured by a person who has
14 been judicially declared insolvent or bankrupt or who has no
15 identifiable successor in interest.
16 A seller not otherwise a manufacturer shall be deemed to be a
17 manufacturer unless the seller discloses the identity of the
18 actual manufacturer subsequent to the incident which is the
19 basis of the product liability action and the disclosure is made
20 within 45 days after service of process is made on the defendant
21 or after receiving a written request for such disclosure,
22 whichever shall first occur.
23 "Manufactures." Constructs, designs, fabricates, formulates,
24 installs, prepares or assembles a product.
25 "Person." An individual, corporation, partnership, business
26 trust, unincorporated organization, association, professional
27 association or joint stock company.
28 "Product." Tangible personal property, including fixtures,
29 but not including real property or buildings.
30 "Product liability action" or "action." Any action brought
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1 for or on account of personal injury, illness, disease,
2 disability, death or property damage caused by the manufacture,
3 construction, design, formula, installation, preparation,
4 assembly, testing, marketing, packaging, labeling or sale of any
5 product or the failure to warn or protect against a danger or
6 hazard in the use, misuse or unintended use of any product, or
7 the failure to provide proper instructions for the use of any
8 product, including such an action brought under Title 13
9 (relating to commercial code).
10 "Seller." Any person, including a wholesaler, distributor or
11 retailer, who is engaged in the business of selling or leasing
12 such products for resale, use or consumption.
13 "User or consumer." A person who uses or consumes a product,
14 including bystanders or other persons who are harmed by a
15 product.
16 § 8353. Strict liability in tort.
17 (a) General rule.--A manufacturer is subject to liability
18 for physical harm caused to the person or property of the user
19 or consumer only if all of the following conditions are met:
20 (1) The product was manufactured in a defective
21 condition.
22 (2) The product was expected to and did reach the user
23 or consumer without substantial change in the condition in
24 which it was manufactured.
25 (3) The defective condition was unreasonably dangerous
26 to the person or property of the user or consumer.
27 (4) The defective condition caused the harm sustained by
28 the person or property of the user or consumer.
29 (b) Lack of care or contract not necessary.--The rule stated
30 in subsection (a) applies although:
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1 (1) the manufacturer has exercised all possible care in
2 the manufacture and sale of the product; and
3 (2) the user or consumer has not bought the product from
4 or entered into any contractual relation with the
5 manufacturer.
6 (c) Manufacturer not guarantor.--In any action brought on
7 the theory of strict liability as set forth in subsection (a),
8 the trier of fact shall not be instructed that the manufacturer
9 is the guarantor of the safety of the product.
10 § 8354. Permissible theories for product liability actions.
11 (a) General rule.--Product liability actions shall be
12 brought only upon the theories of:
13 (1) Negligence.
14 (2) Breach of contract, including breach of warranty,
15 express or implied.
16 (3) Breach of, or failure to discharge, a duty to warn
17 or instruct, whether deliberate or negligent.
18 (4) Misrepresentation, concealment or nondisclosure,
19 whether fraudulent or negligent.
20 (5) In the case of a manufacturer, strict liability in
21 tort as defined in this subchapter, except as set forth in
22 section 8358 (relating to failure to specify, instruct or
23 warn).
24 (b) Action against seller.--No product liability action
25 based on the theory of strict liability in tort shall be
26 commenced or maintained against any seller of a product who is
27 not otherwise a manufacturer. This subsection shall not prevent
28 an action based upon any of the other theories of liability
29 listed in subsection (a) from being brought against a seller.
30 § 8355. Defense for product modification, alteration or
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1 deterioration.
2 (a) General rule.--A defendant shall not be liable for that
3 portion of injury or damage caused by an alteration or
4 modification that would not have occurred but for the fact that
5 the product was altered or modified by a person other than the
6 defendant unless the plaintiff proves by a preponderance of the
7 evidence that:
8 (1) the alteration or modification was in accordance
9 with the defendant's instructions or specifications;
10 (2) the alteration or modification was made with the
11 express consent of the defendant; or
12 (3) the alteration or modification was the result of
13 conduct that reasonably should have been anticipated by the
14 defendant.
15 (b) Definition.--For purposes of this section, "alteration
16 or modification" includes, but is not limited to, changes in the
17 design, formula or function of the product from that originally
18 designed, tested or intended by the defendant, or changes in or
19 removal of any safety feature or deterioration arising from
20 unreasonable failure to observe routine care and maintenance.
21 § 8356. Product misuse by persons other than defendant.
22 (a) Product misuse.--In any product liability action,
23 evidence of misuse of the product by persons other than the
24 defendant shall be admissible.
25 (b) Definition.--For the purposes of this subsection (a),
26 misuse shall include, in addition to uses deemed to constitute
27 misuse under the law of this Commonwealth:
28 (1) Uses contrary to adequate recommendations,
29 specifications, instructions or warnings accompanying the
30 product or otherwise provided by the defendant, unless the
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1 defendant knows, or is aware of facts from which a reasonable
2 person would infer, that there exist identifiable hazards
3 associated with a substantial pattern of use contrary to such
4 recommendations, specifications, instructions or warnings,
5 and fails, or has failed, to take reasonable precautions
6 against such hazards.
7 (2) Uses other than those for which persons of ordinary
8 skill and judgment (or in the case of prescription products,
9 practitioners of appropriate medical skill and judgment)
10 would normally and reasonably expect the product to be
11 suitable.
12 § 8357. Liability for product design or formula.
13 (a) Liability limited.--In any product liability action
14 based upon injury or damage alleged to have resulted from the
15 defective design or formula of a product, the manufacturer
16 responsible for the design or formula of a product shall not be
17 liable unless the plaintiff proves by a preponderance of the
18 evidence that the utilization of an alternative design or
19 formula was known or should have been known and was readily
20 available to the manufacturer at the time the product was
21 manufactured and that such utilization would have prevented the
22 injury or damage or resulted in less severe injury or damage.
23 (b) Considerations in determination.--In determining in
24 accordance with subsection (a) whether the product was defective
25 in design or formula, the trier of fact shall consider whether
26 an alternative design or formula should have been utilized or
27 the product should have been withheld from the market in light
28 of the following:
29 (1) The probability at the time of manufacture that the
30 product would cause the harm suffered by the user or
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1 consumer.
2 (2) The seriousness of that harm.
3 (3) The technological feasibility of manufacturing the
4 product in accordance with the alternative design or formula.
5 (4) The relative costs of producing, distributing and
6 selling such an alternative design or formula.
7 (5) The new or additional or increased risk of injury or
8 damage that may result from such an alternative design or
9 formula.
10 (c) Safety or protective devices.--In any product liability
11 action in which a defect in the formulation or design of a
12 product is alleged, the manufacturer shall not be liable for
13 that portion of the injury or damage which could have been
14 avoided or reduced by attachment to, inclusion in, or use with
15 the product of a safety or protective device or substance, if
16 the defendant proves by a preponderance of the evidence that:
17 (1) the attachment, inclusion or use of such safety or
18 protective device or substance would have been inappropriate
19 to or incompatible with a function or manner of use to which
20 the product reasonably was suited; or
21 (2) such safety or protective device or substance was
22 offered or recommended by the manufacturer for purchase or
23 use by the user or consumer who was injured or damaged, or by
24 such person's employer, and such person or such person's
25 employer did not purchase or use such additional safety or
26 protective device or substance.
27 § 8358. Failure to specify, instruct or warn.
28 (a) Liability limited.--In any product liability action
29 based upon an alleged failure to provide adequate
30 specifications, instructions or warnings, the manufacturer or
19790H1083B2787 - 10 -
1 any other defendant shall not be held liable for failure to
2 specify, instruct or warn, except upon the theory of negligence.
3 (b) Considerations in determination.--In determining whether
4 adequate specifications, instructions or warnings were provided,
5 the trier of fact shall consider the following:
6 (1) The probability at the time of manufacture or sale
7 that the product would cause the injury or damage suffered by
8 the user or consumer.
9 (2) The seriousness of that injury or damage.
10 (3) The defendant's ability, at the time of manufacture
11 or sale, reasonably to anticipate that the expected product
12 user or consumer would be aware of the product's risks and
13 the nature of the potential injury or damage.
14 (4) The technological feasibility and cost of providing
15 specifications, warnings or instructions.
16 (c) Burden of proof.--In a product liability action based
17 upon a claimed failure to provide adequate specifications,
18 instructions or warnings, the plaintiff shall be required to
19 prove by a preponderance of the evidence that the failure to
20 provide adequate specifications, warnings or instructions was
21 the proximate cause of the injury or damage.
22 § 8359. Government standards. <--
23 (a) Request for determination as to product.--A defendant
24 may by a motion request the court to determine whether the
25 injury-causing aspect of the product conformed to a mandatory
26 administrative or statutory standard in effect at the time the
27 defendant parted with possession and control of the product, or
28 sold it, whichever occurred last.
29 (b) Affirmative determination.--If the court makes the
30 determination referred to in subsection (a) in the affirmative,
19790H1083B2787 - 11 -
1 it shall instruct the trier of fact to presume that the product
2 was not defective and that the defendant was not negligent. This
3 presumption may be rebutted by a preponderance of evidence
4 showing that:
5 (1) the standard was not developed as a result of an
6 independent and careful, thorough product testing and a
7 formal product safety evaluation by the governmental agency
8 responsible for promulgating such standards;
9 (2) consumer safety interests were not considered in
10 formulating the standard; or
11 (3) the standard was not up to date in light of the
12 state of the art knowledge reasonably available to the
13 defendant at the time of promulgation thereof.
14 § 8360 8359. State of the art. <--
15 In any product liability action, it shall be a rebuttable <--
16 presumption AN INFERENCE SHALL BE CREATED that the product was <--
17 not defective nor the defendant negligent if the defendant
18 proves by a preponderance of the evidence that the product
19 conformed with generally recognized and prevailing standards,
20 designs or methods of testing or manufacturing of the state of
21 the art. For the purposes of this section "state of the art"
22 means the safety, technical, mechanical and scientific knowledge
23 in existence and reasonably feasible for use at the time of the
24 manufacture of the product.
25 § 8361 8360. Inadmissibility of evidence of improvements. <--
26 In any product liability action, evidence of advancements or
27 changes in technical knowledge or techniques, in design, theory
28 or philosophy, or in manufacturing or testing techniques or of
29 any alteration, modification, improvement or change in or
30 discontinuance of the manufacture, construction, design,
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1 formula, installation, preparation, assembly, testing,
2 marketing, packaging, labeling or sale of a product, whether
3 made by the defendant or any other party, which have been made,
4 learned or placed into common use subsequent to the time the
5 person who is primarily responsible for manufacturing the final
6 product allegedly causing injury, death or damage parted with
7 its possession and control, or sold it, whichever occurred last,
8 shall not be admissible for any purpose: Provided, however, That
9 this section does not require the exclusion of evidence of
10 subsequent advancements, alterations, modifications,
11 improvements or changes when offered for the purpose of
12 contradicting a witness or of impeaching relevant testimony.
13 § 8362 8361. Evidence of collateral benefits. <--
14 (a) General rule.--In any product liability action in which
15 compensatory damages are sought, the defendant shall be entitled
16 to the admission of evidence as to the nature and extent of any
17 public collateral benefits or services received or to be
18 received by the plaintiff. It shall be admissible for the
19 plaintiff to show that such collateral benefits or services
20 received or to be received are subrogatable.
21 (b) Definition.--As used in this section "public collateral
22 benefits or services" mean those benefits or services that an
23 individual receives or is entitled to receive from social
24 security (except those benefits provided under Title XIX of the
25 Federal Social Security Act and except those medicare benefits
26 to which a person's entitlement depends upon use of his so-
27 called "lifetime reserve" of benefit days), workmen's
28 compensation, any State required temporary nonoccupational
29 disability and all other benefits (except the proceeds of life
30 insurance and except benefit programs not statutorily mandated)
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1 received by or recoverable by an individual from any government
2 because of the injury.
3 § 8363 8362. Punitive and exemplary damages. <--
4 (a) General rule.--In any product liability action, no
5 punitive or exemplary damages shall be awarded except upon a
6 finding by the trier of fact that the defendant acted with a bad
7 motive or with reckless indifference to the health and safety of
8 the users or consumers.
9 (b) Evidence.--Punitive or exemplary damages shall be
10 awardable only if the plaintiff establishes all the elements of
11 the cause of action for punitive or exemplary damages by clear
12 and convincing evidence.
13 (c) Damages stated separately.--The trier of fact shall
14 separately state the amount of punitive or exemplary damages
15 awarded.
16 § 8364 8363. Comparative responsibility in product liability <--
17 actions.
18 (a) General rule.--In any product liability action the
19 responsibility of the person suffering the injury or damage, as
20 well as the responsibility of all others for causing the injury
21 or damage, shall be compared by the trier of fact. The
22 responsibility of the person suffering the harm shall not bar
23 recovery for the injury or damage sustained where it was not
24 greater than the total responsibility of all parties against
25 whom recovery is sought. However, any damages allowed shall be
26 diminished in proportion to the amount of responsibility
27 attributable to the person recovering.
28 (b) Allocating damages and responsibility for each party.--
29 The court may, and when requested by any party shall, direct the
30 jury to find separate special verdicts determining the total
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1 dollar amount of damages and the percentages of responsibility
2 attributable to each party. The court shall then reduce the
3 amount of such damages in proportion to the amount of
4 responsibility attributable to the person recovering.
5 (c) Proportional liability of multiple defendants.--Where
6 the recovery is allowed against more than one defendant, each
7 defendant shall be liable for that proportion of the total
8 dollar amount awarded as damages in the ratio of his
9 responsibility to the amount of responsibility attributed to all
10 defendants against whom recovery is allowed. The plaintiff may
11 recover the full amount of the allowed recovery from any
12 defendant against whom such plaintiff is not barred from
13 recovery. Any defendant who is so compelled to pay more than his
14 percentage share may seek contribution.
15 (d) Responsibility defined.--As used in this section
16 "responsibility" means conduct which was a substantial factor in
17 bringing about the harm for which damages are sought.
18 Section 3. All acts or parts of acts which are inconsistent
19 with the provisions of this act are repealed to the extent of
20 the inconsistency.
21 Section 4. (a) Insurance Commissioner to require reports.--
22 The Insurance Commissioner, by the authority vested in him by
23 law pursuant to the act of June 11, 1947 (P.L.538, No.246),
24 known as "The Casualty and Surety Rate Regulatory Act," and
25 sections 213, 214 and 216, act of May 17, 1921 (P.L.789,
26 No.285), known as "The Insurance Department Act of one thousand
27 nine hundred and twenty-one," shall require every insurer
28 transacting the business of insurance in this Commonwealth to
29 report any and all information the commissioner may deem
30 relevant to the faithful performance of his duties in
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1 determining that rates for product liability insurance are
2 neither excessive, inadequate nor unfairly discriminatory.
3 (b) Insurance Commissioner to review rates.--The
4 commissioner shall from time to time review all product
5 liability rate filings to determine their compliance with the
6 purpose of the act of June 11, 1947 (P.L.538, No.246), known as
7 "The Casualty and Surety Rate Regulatory Act," and shall within
8 one year following the effective date of this act, and annually
9 thereafter, report his findings to the General Assembly and
10 shall take such steps as may be appropriate to bring all rate
11 filings in conformity with the requirements of "The Casualty and
12 Surety Rate Regulatory Act."
13 (c) Reporting requirements.--
14 (1) Every insurer authorized to transact business in
15 this Commonwealth and providing product liability insurance
16 shall on or before March 1 of each year file with the
17 Insurance Commissioner a report upon forms approved by the
18 commissioner the following information pertaining to product
19 liability earned premium experience for:
20 (i) Basic limits liability (25,000/50,000); Bodily
21 injury (5,000/25,000); Property damage per occurrence/per
22 annual aggregate.
23 (ii) Excess limits.
24 (iii) Bodily injury liability.
25 (iv) Property damage liability.
26 (v) Pennsylvania.
27 (vi) Countrywide.
28 (vii) By classification.
29 (viii) Exposure base primarily units of sales,
30 receipts or payroll for each classification.
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1 (2) Every insurer authorized to transact business in
2 this Commonwealth and providing product liability insurance
3 shall on or before March 1 of each year file with the
4 Insurance Commissioner a report upon forms approved by the
5 commissioner the following information pertaining to claims
6 experience for:
7 (i) Basic limits incurred claims.
8 (ii) Excess limits incurred claims by layer.
9 (iii) The number of paid claims.
10 (iv) The amount of paid claims.
11 (v) The number of outstanding claims.
12 (vi) The dollar amount of outstanding claims.
13 (vii) The dollars of incurred losses evaluated as of
14 27, 39, 51, 63 and 75 months.
15 (viii) The number of incurred claims as of the same
16 evaluation date as of subparagraph (vii).
17 (ix) Number by size of incurred claims.
18 (x) Number by classification.
19 (xi) Number for Pennsylvania.
20 (xii) Number countrywide.
21 (xiii) Paid allocated loss adjustment expenses.
22 (xiv) Outstanding allocated loss adjustment
23 expenses.
24 (xv) Whether or not the company sets reserves for
25 product liability insurance claims filed and the annual
26 earnings of each such reserve by property and casualty
27 category for the past five years and each year
28 thereafter.
29 (xvi) Whether or not the company sets reserves for
30 any claims for product liability losses which have been
19790H1083B2787 - 17 -
1 incurred but not reported and the annual earnings of such
2 reserves for the past five years and each year
3 thereafter.
4 (xvii) All reserves established in connection with
5 each property and casualty line or type of insurance.
6 (3) The commissioner shall make reports required by this
7 section available to the public.
8 (4) There shall be no liability on the part of and no
9 cause of action of any nature shall arise against any insurer
10 reporting under this section or its agents or employees, or
11 the commissioner or the employees of the Insurance
12 Department, for any action taken by them pursuant to this
13 section.
14 (5) The commissioner shall submit to the Governor and
15 the Chairmen of the House and Senate Insurance Committees no
16 later than 36 months from the effective date of this section
17 a report. The report shall evaluate the information reported
18 by insurers as required under the provisions of paragraphs
19 (1) and (2) and such relevant data as may be necessary to
20 evaluate the operations of this section. The report may
21 include recommendations at the discretion of the
22 commissioner.
23 (d) Limitation on approval of rates.--The insurance
24 commissioner is hereby directed to disapprove any product
25 liability rate filing made by any insurer or rating organization
26 for a period of three years from the effective date of this act,
27 except:
28 (1) Upon the written consent of the insured stating his
29 reasons therefor, filed with and approved by the commissioner
30 a rate in excess of that provided by a filing otherwise
19790H1083B2787 - 18 -
1 applicable may be used on any specific risk. The rate shall
2 become effective when such consent is filed and shall be
3 deemed to meet the requirements of this act until such time
4 as the commissioner reviews the filing and so long thereafter
5 as the filing remains in effect.
6 (2) A filing providing decreased rates for all or
7 certain classes and categories of risks.
8 Section 5. This act shall take effect in 60 days and shall
9 apply to all actions accruing after the effective date of this
10 act.
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