PRIOR PRINTER'S NO. 824                        PRINTER'S NO. 911

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 784 Session of 1981


        INTRODUCED BY GEKAS, FISHER, HAGER, HOWARD, SNYDER, SHAFFER,
           O'CONNELL, KUSSE, HESS, STAUFFER, HOPPER, KELLEY, MOORE,
           PRICE AND MANBECK, MAY 4, 1981

        SENATOR GEKAS, JUDICIARY, AS AMENDED, MAY 27, 1981

                                     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)  User or consumer may bring action.--A user or consumer
    11  may bring a product liability action at any time, subject to
    12  subsection (c), where the action is based solely on one or more
    13  of the following:
    14         (1)  Any theory or theories of negligence.
    15         (2)  Fraudulent misrepresentation, fraudulent concealment
    16     or fraudulent nondisclosure by the defendant.
    17         (3)  A negotiated contractual obligation which contains a
    18     period of limitation different than that contained in

     1     subsection (b). If, however, the negotiated contractual
     2     obligation provides for a period shorter than that set forth
     3     in subsection (b), such shorter period shall not be
     4     applicable to the rights of persons who are not parties to
     5     such negotiated contractual obligation. No reduction or
     6     limitation of the period set forth in subsection (b) shall be
     7     applicable to consumer goods as defined in 13 Pa.C.S. § 9109
     8     (relating to classification of goods: "consumer goods";
     9     "equipment"; "farm products"; "inventory").
    10         (4)  To recover damages to the person caused by the use
    11     of or exposure to any product or substance which causes
    12     injury of a latent or incremental nature which was not
    13     manifest or reasonably detectable prior to the expiration of
    14     the period set out in subsection (b).
    15     (b)  General 12-year statute of repose.--No product liability
    16  action, as defined in section 8363 (relating to definition),
    17  other than those set forth in subsection (a) may be brought more
    18  than 12 years from the time the person who is primarily
    19  responsible for manufacturing the final product parted with its
    20  possession and control, or sold it, whichever occurred last.
    21     (c)  Two-year statute of limitation.--Any product liability
    22  action set forth in subsection (a) or accruing during or prior
    23  to the twelfth year from the time set forth in subsection (b),
    24  shall be brought within two years after the date on which that
    25  action accrued. However, this subsection shall not be construed
    26  to alter any contrary provision contained in Title 13 (relating
    27  to commercial code).
    28     (d)  Action for indemnity or contribution.--An action for
    29  indemnity or contribution, other than an action arising out of a
    30  written contract, shall be commenced within the period of time
    19810S0784B0911                  - 2 -

     1  set forth in this action SECTION, plus 180 days, unless extended  <--
     2  by the court for good cause shown. An action for indemnity or
     3  contribution may be commenced at the time the party seeking
     4  indemnity or contribution is named a defendant in any action,
     5  whether or not the party seeking indemnity or contribution has
     6  come under a fixed obligation to pay damages in the product
     7  liability action brought against it.
     8     Section 2.  Chapter 83 of Title 42 is amended by adding a
     9  subchapter to read:
    10                             CHAPTER 83
    11                  PARTICULAR RIGHTS AND IMMUNITIES
    12                               * * *
    13                            SUBCHAPTER F
    14                     PRODUCT LIABILITY ACTIONS
    15  Sec.
    16  8361.  Preamble.
    17  8362.  Short title of subchapter.
    18  8363.  Definitions.
    19  8364.  Strict liability in tort.
    20  8365.  Permissible theories for product liability actions.
    21  8366.  Defense for product modification, alteration or
    22         deterioration.
    23  8367.  Product misuse by persons other than defendant.
    24  8368.  Liability for product design or formula.
    25  8369.  Failure to specify, instruct or warn.
    26  8370.  Mandatory government contract specifications.
    27  8371.  State of the art.
    28  8372.  Inadmissibility of evidence of improvements.
    29  8373.  Evidence of collateral benefits.
    30  8374.  Punitive and exemplary damages.
    19810S0784B0911                  - 3 -

     1  8375.  Comparative responsibility in product liability actions.
     2  § 8361.  Preamble.
     3     This act sets forth standards for Pennsylvania product
     4  liability law. The principal purpose of the act is to provide a
     5  fair balance of the interests of manufacturers and sellers of
     6  products, users and consumers of those products and the public
     7  at large. The fulfillment of this purpose should assist, first,
     8  to provide incentives for innovation, development and the
     9  manufacturing of safe products without threatening the economic
    10  stability of product manufacturers, thereby benefiting the
    11  general public, and, second, to assure that persons injured by
    12  unreasonably unsafe products will be compensated fairly for
    13  their injuries, and, third, to make product liability insurance
    14  more widely available and affordable, with greater stability in
    15  insurance costs and more predictability in insurance risks.
    16  § 8362.  Short title of subchapter.
    17     This subchapter shall be known and may be cited as the
    18  "Product Liability Law."
    19  § 8363.  Definitions.
    20     The following words and phrases when used in this subchapter
    21  shall have, unless the context clearly indicates otherwise, the
    22  meanings given to them in this section:
    23     "Manufacturer."  A seller who manufactures the finished
    24  product, or any component substance or part thereof, which is
    25  proven to have caused injury to the user or consumer. The term
    26  includes any seller who:
    27         (1)  has actual knowledge of a defect in a product;        <--
    28         (2)  creates and furnishes a manufacturer with
    29     specifications for manufacturing the product when the
    30     specifications are related to the alleged defect;
    19810S0784B0911                  - 4 -

     1         (3)  otherwise exercises some substantial control over
     2     all or a portion of the manufacturing process;
     3         (4)  alters or modifies a product in a substantial way
     4     before it is sold to a user or consumer;
     5         (5)  is the actual importer of the product, unless a       <--
     6     party, including the party instituting an action pursuant to
     7     this subchapter, is capable of obtaining valid jurisdiction
     8     over the foreign product manufacturer;
     9         (5)  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;
    13         (6)  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; or
    16         (7)  does not disclose the identity of the actual
    17     manufacturer subsequent to the incident which is the basis of
    18     the product liability action within 60 days after receiving a
    19     written request for such disclosure, which written request
    20     shall provide the seller with all information in the
    21     requester's possession necessary to identify the actual
    22     manufacturer.
    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
    19810S0784B0911                  - 5 -

     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  § 8364.  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 of consumer.
    29     (b)  Lack of care or contract not necessary.--The rule stated
    30  in subsection (a) applies although:
    19810S0784B0911                  - 6 -

     1         (1)  The manufacturer has exercised all possible care in
     2     the manufacture and sale of the product.
     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  § 8365.  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 8369 (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  § 8366.  Defense for product modification, alteration or
    19810S0784B0911                  - 7 -

     1           deterioration.
     2     (a)  General rule.--A defendant shall not be liable for that
     3  portion of injury or damage WHICH THE DEFENDANT PROVES BY A       <--
     4  PREPONDERANCE OF THE EVIDENCE WAS caused by an alteration or
     5  modification that would not have occurred but for the fact that
     6  the product was altered or modified by a person other than the
     7  defendant, unless the plaintiff THEN proves by a preponderance    <--
     8  of the evidence that:
     9         (1)  the alteration or modification was in accordance
    10     with the defendant's instructions or specifications;
    11         (2)  the alteration or modification was made with the
    12     express consent of the defendant; or
    13         (3)  the alteration or modification was the result of
    14     conduct that reasonably should have been anticipated by the
    15     defendant.
    16     (b)  Definition.--For purposes of this section, "alteration
    17  or modification" includes, but is not limited to, changes in the
    18  design, formula or function of the product from that originally
    19  designed, tested or intended by the defendant, or changes in or
    20  removal of any safety feature or deterioration arising from
    21  unreasonable failure to observe routine care and maintenance.
    22  § 8367.  Product misuse by persons other than defendant.
    23     (a)  General rule.--A defendant shall not be liable for that
    24  portion of injury or damage caused by the misuse of a product by
    25  a person or persons other than such defendant.
    26     (b)  Definition.--For the purposes of subsection (a), misuse
    27  shall include, in addition to uses deemed to constitute misuse
    28  under the law of this Commonwealth:
    29         (1)  Uses contrary to adequate recommendations,
    30     specifications, instruction or warnings accompanying the
    19810S0784B0911                  - 8 -

     1     product or otherwise provided by the defendant, unless the
     2     defendant knows, or is aware of facts from which a reasonable
     3     person would infer, that there exist identifiable hazards
     4     associated with a substantial pattern of use contrary to such
     5     recommendations, specifications, instructions or warnings,
     6     and fails, or has failed, to take reasonable precautions
     7     against such hazards.
     8         (2)  Uses other than those for which persons of ordinary
     9     skill and judgment (or in the case of prescription products,
    10     practitioners of appropriate medical skill and judgment)
    11     would normally and reasonably expect the product to be
    12     suitable.
    13         (3)  Uses contrary to applicable rules, regulations or     <--
    14     orders issued by a Federal or State agency.
    15  § 8368.  Liability for product design or formula.
    16     (a)  Liability limited.--In any product liability action
    17  based upon injury or damage alleged to have resulted from a
    18  defective design or formula, the manufacturer responsible for
    19  the design or formula of the product shall not be liable unless
    20  the plaintiff proves by a preponderance of the evidence that the
    21  utilization of an alternative design or formula was known or
    22  should have been known and was readily available to the
    23  manufacturer at the time the product was manufactured and that
    24  such utilization would have prevented the injury or damage or
    25  resulted in less severe injury or damage.
    26     (b)  Considerations in determination.--In determining in
    27  accordance with subsection (a) whether the product was defective
    28  in design or formula, the trier of fact shall decide whether an
    29  alternative design or formula should have been utilized or the
    30  product should have been withheld from the market after
    19810S0784B0911                  - 9 -

     1  considering all relevant facts in evidence, including, but not
     2  limited to, the following:
     3         (1)  The probability at the time of manufacture that the
     4     product would cause the harm suffered by the user or
     5     consumer.
     6         (2)  The seriousness of that harm.
     7         (3)  The technological feasibility of manufacturing the
     8     product in accordance with the alternative design or formula.
     9         (4)  The relative costs of producing, distributing and
    10     selling such an alternative design or formula.
    11         (5)  The new or additional or increased risk of injury or
    12     damage that may result from such an alternative design or
    13     formula.
    14     (c)  Safety or protective devices.--In any product liability
    15  action in which a defect in the formulation or design of a
    16  product is alleged, the manufacturer shall not be liable for
    17  that portion of the injury or damage which could have been
    18  avoided by attachment to, inclusion in, or use with the product
    19  of a safety or protective device or substance, if the defendant
    20  proves by a preponderance of the evidence that
    21         (1)  the attachment, inclusion or use of such safety or    <--
    22     protective device or substance would have been inappropriate
    23     to or incompatible with a function or manner of use to which
    24     the product reasonably was suited. or                          <--
    25         (2)  such safety or protective device or substance was     <--
    26     offered or recommended by the manufacturer for purchase or
    27     use by the user or consumer who was injured or damaged, or by
    28     such person's employer, and such person or person's employer
    29     did not purchase or use such additional safety or protective
    30     device or substance.
    19810S0784B0911                 - 10 -

     1  § 8369.  Failure to specify, instruct or warn.
     2     (a)  Liability limited.--In any product liability action
     3  based upon an alleged failure to provide adequate
     4  specifications, instructions or warnings, the manufacturer or
     5  any other defendant shall not be held liable for failure to
     6  specify, instruct or warn, except upon the theory of negligence   <--
     7  UPON THE THEORY OF STRICT LIABILITY IN TORT.                      <--
     8     (b)  Considerations in determination.--In determining whether
     9  THE DEFENDANT WAS NEGLIGENT IN FAILING TO PROVIDE adequate        <--
    10  specifications, instructions or warnings were provided, the       <--
    11  trier of fact shall consider the following:
    12         (1)  The probability at the time of manufacture or sale
    13     that the product would cause the injury or damage suffered by
    14     the user or consumer.
    15         (2)  The seriousness of that injury or damage.
    16         (3)  The defendant's ability, at the time of manufacture
    17     or sale, reasonably to anticipate that the expected product
    18     user or consumer would be aware of the product's risks and
    19     the nature of the potential injury or damage.
    20         (4)  The technological feasibility and cost of providing
    21     specifications, warnings or instructions.
    22     (c)  Burden of proof.--In a product liability action based
    23  upon a claimed NEGLIGENT failure to provide adequate              <--
    24  specifications, instructions or warnings, the plaintiff shall be
    25  required to prove by a preponderance of the evidence that the
    26  failure to provide adequate specifications, warnings or
    27  instructions was the proximate cause of the injury or damage.
    28  § 8370.  Mandatory government contract specifications.
    29     (a)  Noncompliance.--When the injury-causing aspect of the
    30  product was not, at the time of manufacture, in compliance with
    19810S0784B0911                 - 11 -

     1  a mandatory government contract specification under which such
     2  product was manufactured, the product shall be deemed defective
     3  in accordance with section 8364(a)(1) (relating to strict
     4  liability in tort).
     5     (b)  Defense.--When the injury-causing aspect of the product
     6  was, at the time of manufacture, in compliance with a mandatory
     7  government contract specification, UNDER WHICH SUCH PRODUCT WAS   <--
     8  MANUFACTURED this shall be a defense and the product shall be
     9  deemed not defective.
    10  § 8371.  State of the art.
    11     In any product liability action, a presumption shall be
    12  created that the product was not defective nor the defendant
    13  negligent if the defendant proves by a preponderance of the
    14  evidence that the product conformed with generally recognized     <--
    15  and prevailing standards, THE STATE OF THE ART FOR THE, designs   <--
    16  or methods of testing or manufacturing of the state of the art    <--
    17  PRODUCT. For the purposes of this section "state of the art"      <--
    18  means the safety, technical, mechanical and scientific knowledge
    19  in existence and reasonably feasible for use at the time of the
    20  manufacture of the product.
    21  § 8372.  Inadmissibility of evidence of improvements.
    22     In any product liability action, evidence of advancements or
    23  changes in technical knowledge or techniques, in design, theory
    24  or philosophy, or in manufacturing or testing techniques or of
    25  any alteration, modification, improvement or change in or
    26  discontinuance of the manufacture, construction, design,
    27  formula, installation, preparation, assembly, testing,
    28  marketing, packaging, labeling or sale of a product, whether
    29  made by the defendant or any other party, which have been made,
    30  learned or placed into common use subsequent to the time the
    19810S0784B0911                 - 12 -

     1  person who is primarily responsible for manufacturing the final
     2  product allegedly causing injury, death or damage parted with
     3  its possession and control, or sold it, whichever occurred last,
     4  shall not be admissible for any purpose: Provided, however, That
     5  this section does not require the exclusion of evidence of
     6  subsequent advancements, alterations, modifications,
     7  improvements or changes when offered for the purpose of
     8  contradicting a witness or of impeaching relevant testimony.
     9  § 8373.  Evidence of collateral benefits.
    10     (a)  General rule.--In any product liability action in which
    11  compensatory damages are sought, the defendant shall be entitled
    12  to the admission of evidence as to the nature and extent of any
    13  public collateral benefits or services received or to be
    14  received by the plaintiff. If shall be admissible for the
    15  plaintiff to show that such collateral benefits or services
    16  received or to be received are subrogatable.
    17     (b)  Definition.--As used in this section "public collateral
    18  benefits or services" mean those benefits or services that an
    19  individual receives or is entitled to receive from social
    20  security (except those benefits provided under Title XIX of the
    21  Federal Social Security Act and except those medicare benefits
    22  to which a person's entitlement depends upon use of his so-
    23  called "lifetime reserve" of benefit days), workmen's
    24  compensation, any State required temporary nonoccupational
    25  disability and all other benefits (except the proceeds of life
    26  insurance and except benefit programs not statutorily mandated)
    27  received by or recoverable by an individual from any government
    28  because of the injury.
    29  § 8374.  Punitive and exemplary damages.
    30     (a)  General rule.--In any product liability action, no
    19810S0784B0911                 - 13 -

     1  punitive or exemplary damages shall be awarded except upon a
     2  finding by the trier of fact that the defendant acted with a bad
     3  motive or with reckless indifference to the health and safety of
     4  the users or consumers.
     5     (b)  Evidence.--Punitive or exemplary damages shall be
     6  awardable only if the plaintiff establishes all the elements of
     7  the cause of action for punitive or exemplary damages by clear
     8  and convincing evidence.
     9     (c)  Damages stated separately.--The trier of fact shall
    10  separately state the amount of punitive or exemplary damages
    11  awarded.
    12  § 8375.  Comparative responsibility in product liability
    13           actions.
    14     (a)  General rule.--In any product liability action the
    15  responsibility of the person suffering the injury or damage, as
    16  well as the responsibility of all others for causing the injury
    17  or damage, shall be compared by the trier of fact. The
    18  responsibility of the person suffering the harm shall not bar
    19  recovery for the injury or damage sustained where it was not
    20  greater than the total responsibility of all parties against
    21  whom recovery is sought. However, any damages allowed shall be
    22  diminished in proportion to the amount of responsibility
    23  attributable to the person recovering.
    24     (b)  Allocating damages and responsibility for each party.--
    25  The court may, and when requested by any party shall, direct the
    26  jury to find separate special verdicts determining the total
    27  dollar amount of damages and the percentages of responsibility
    28  attributable to each party. The court shall then reduce the
    29  amount of such damages in proportion to the amount of
    30  responsibility attributable to the person recovering.
    19810S0784B0911                 - 14 -

     1     (c)  Proportional liability of multiple defendants.--Where     <--
     2  the recovery is allowed against more than one defendant, each
     3  defendant shall be liable only for that proportion of the total
     4  dollar amount awarded as damages in the ratio of his
     5  responsibility to the amount of responsibility attributed to all
     6  defendants against whom recovery is allowed. Upon a motion made
     7  not later than one year after judgment is entered on a verdict
     8  rendered pursuant to subsection (b) of this section, the court
     9  shall determine whether all or part of a judgment debtor's share
    10  of the dollar amount awarded as damages is uncollectible from
    11  that debtor, and shall reallocate the share of liability of the
    12  judgment debtor determined to be uncollectible among all other
    13  judgment debtors in the proportion that each remaining debtor's
    14  established percentage of responsibility bears to the
    15  uncollected share. A debtor whose liability is thus reallocated
    16  remains subject to contribution to the other judgment debtors
    17  for its undischarged liability to the judgment creditor.
    18     (C)  PROPORTIONAL LIABILITY OF MULTIPLE DEFENDANTS.--WHERE     <--
    19  THE RECOVERY IS ALLOWED AGAINST MORE THAN ONE DEFENDANT, EACH
    20  DEFENDANT SHALL BE LIABLE FOR THE PROPORTION OF THE TOTAL DOLLAR
    21  AMOUNT AWARDED AS DAMAGES IN THE RATIO OF HIS RESPONSIBILITY TO
    22  THE AMOUNT OF RESPONSIBILITY ATTRIBUTED TO ALL DEFENDANTS
    23  AGAINST WHOM RECOVERY IS ALLOWED. THE PLAINTIFF MAY RECOVER THE
    24  FULL AMOUNT OF THE ALLOWED RECOVERY FROM ANY DEFENDANT AGAINST
    25  WHOM SUCH PLAINTIFF IS NOT BARRED FROM RECOVERY. ANY DEFENDANT
    26  WHO IS SO COMPELLED TO PAY MORE THAN HIS PERCENTAGE SHARE MAY
    27  SEEK CONTRIBUTION.
    28     (d)  Responsibility defined.--As used in this section
    29  "responsibility" means conduct which was a substantial factor in
    30  bringing about the harm for which damages are sought.
    19810S0784B0911                 - 15 -

     1     Section 3.  All acts or parts of acts which are inconsistent
     2  with the provisions of this act are repealed to the extent of
     3  the inconsistency.
     4     Section 4.  (a)  Every insurer writing product liability
     5  insurance in this State shall, on or before May 1 of each year,
     6  report the following information to the Commissioner of
     7  Insurance:
     8         (1)  All states in which the reporting insurer is writing
     9     product liability insurance.
    10         (2)  The following information, by state and territory of
    11     the United States, relative to product liability policies
    12     written by the insurer:
    13             (i)  Direct premiums written.
    14             (ii)  Direct premiums earned.
    15             (iii)  Dividends paid or credited to policyholders on
    16         direct business.
    17             (iv)  Direct losses paid less salvage.
    18             (v)  Direct losses incurred.
    19             (vi)  Direct losses unpaid.
    20         (3)  The following information relative to the company's
    21     overall product liability insurance line:
    22             (i)  Premiums earned during the year.
    23             (ii)  Total premiums in force as of the end of the
    24         year.
    25             (iii)  Reinsurance in force in authorized and
    26         unauthorized companies.
    27             (iv)  Net premiums in force as of the end of the
    28         year.
    29             (v)  Total reserves for unearned premiums.
    30             (vi)  Premiums written, including premiums on direct
    19810S0784B0911                 - 16 -

     1         business, reinsurance assumed, reinsurance ceded, and net
     2         premiums written.
     3         (4)  The following information relative to the insurer's
     4     losses and expenses on product liability insurance written:
     5             (i)  Net losses incurred during the current year and
     6         the ratio of those losses to premiums earned.
     7             (ii)  Net losses unpaid excluding losses adjustment
     8         expenses.
     9             (iii)  Unpaid loss adjustment expenses.
    10         (5)  The following information relative to premiums,
    11     losses, expenses and net income and ratios to earned
    12     premiums:
    13             (i)  Total expenses incurred, including loss
    14         adjustment, commission and brokerage, other acquisition,
    15         field supervision and collection, general expenses and
    16         taxes, licenses and fees.
    17             (ii)  Net investment gain or loss and other income.
    18             (iii)  Net income before Federal and foreign income
    19         taxes.
    20         (6)  The following information as to product liability
    21     premiums, loss payments, loss expenses, and number of claims:
    22             (i)  Premiums earned.
    23             (ii)  Loss payments.
    24             (iii)  Allocated loss expense payments.
    25             (iv)  Unallocated loss expense payments.
    26             (v)  Number of claims outstanding.
    27             (vi)  Losses unpaid.
    28             (vii)  Loss expense unpaid.
    29             (viii)  Total losses and loss expenses incurred.
    30             (ix)  Ratio of total losses and loss expense incurred
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     1         to premiums earned.
     2         (7)  Total amounts for product liability incurred, and
     3     losses and loss expenses as of the end of the calendar year
     4     beginning with 1980.
     5         (8)  Incurred loss and loss expense ratio for each year
     6     beginning in 1980.
     7     (b)  The information required by subsection (a) shall include
     8  the product liability portion of any insurance policy for which
     9  the premiums for product liability coverage are separately
    10  determined and all indivisible premium policies for which at
    11  least one-half of the premium is for product liability coverage.
    12     (c)  The commissioner shall prescribe the manner and form of
    13  reporting the information required by this section which may
    14  include the adoption of any reporting system approved by the
    15  National Association of Insurance Commissioners if such
    16  reporting system substantially fulfills the reporting
    17  requirements of this section; provided that the commissioner may
    18  prescribe by regulation the reporting of such other pertinent
    19  data as the commissioner deems necessary.
    20     (d)  The commissioner, within 90 days after the deadline for
    21  depositing the reports in his office, shall present to the
    22  General Assembly a summary of the report.
    23     Section 5.  This act shall take effect in 60 days and shall
    24  apply to all actions accruing after the effective date of this
    25  act.




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