PRINTER'S NO. 3656
No. 289 Session of 1976
INTRODUCED BY ZEARFOSS AND VROON, JUNE 30, 1976
REFERRED TO COMMITTEE ON RULES, JUNE 30, 1976
In the House of Representatives, June 30, 1976
1 The cost and availability of products liability insurance has
2 become a more difficult problem for persons requiring this type
3 of insurance coverage; therefore be it
4 RESOLVED, That the subcommittee on Insurance of the Committee
5 of Consumer Protection be directed to investigate and determine
6 the following matters:
7 (1) identify and isolate the socio-economic factors and
8 their implications that are contributing to the worsening and
9 unsatisfactory loss rations and that are adversely impacting the
10 cost of products liability insurance and availability of a
11 viable insurance market;
12 (2) whether or not it is in the best interests of the
13 consumers and insurers to create a joint underwriting facility
14 or other mechanisms to guarantee the availability of an
15 insurance market for products liability and professional
16 liability insurance coverages;
17 (3) identify the causes and effects of changing concepts of
18 tort law that impact the costs of products and professional
1 liability insurance;
2 (4) to what extent, if any, has statutory joint underwriting
3 associations, reinsurance facilities or other involuntary
4 insurance market mechanisms affected the voluntary insurance
5 market;
6 (5) to what extent, if any, has the consumer generally,
7 through taxes or the insurance marketplace, subsidized
8 substandard insurance risks by reason of the implementation of
9 such mechanisms to guarantee the availability of insurance
10 coverages; and
11 (6) does the Commonwealth have an obligation to guarantee
12 the availability of an insurance market to all persons for any
13 risk regardless of experience or other factors that may
14 adversely impact the desirability or acceptability of the
15 individual risk as an insured; and be it further
16 RESOLVED, That the committee may hold hearings, take
17 testimony, and make its investigations at such places as it
18 deems necessary. It may issue subpoenas under the hand and seal
19 of its chairman commanding any person to appear before it and to
20 answer questions touching matters properly being inquired into
21 by the committee and to produce such books, papers, records and
22 documents as the committee deems necessary. Such subpoenas may
23 be served upon any person and shall have the force and effect of
24 subpoenas issued out of the courts of this Commonwealth. Any
25 person who willfully neglects or refuses to testify before the
26 committee or to produce any books, papers, records or documents,
27 shall be subject to the penalties provided by the laws of the
28 Commonwealth in such case. Each member of the committee shall
29 have power to administer oaths and affirmations to witnesses
30 appearing before the committee; and be it further
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1 RESOLVED, That within 30 calendar days after the committee
2 has made its report, the chairman of the committee shall cause a
3 record of all expenses incurred by the committee, or the members
4 thereof, which are payable at Commonwealth expense, to be filed
5 with the Speaker of the House and the Speaker shall cause the
6 same to be entered in the journal thereof. No expenses incurred
7 by the committee or any member thereof shall be reimbursable by
8 the Chief Clerk unless such expense shall first have been
9 included as an expense item in the record heretofore required;
10 and be it further
11 RESOLVED, That the subcommittee on insurance report its
12 findings and recommendations to the General Assembly as soon as
13 possible.
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