NORTH CAROLINA GENERAL ASSEMBLY

1979 SESSION

CHAPTER 979

HOUSE BILL 1311

AN ACT RELATING TO INSURANCE COMPANIES AND PROVIDING FOR THE REPORTING OF CERTAIN PRODUCTS LIABILITY CLAIMS AND OTHER INFORMATION TO THE COMMISSIONER OF INSURANCE, AND AUTHORIZING THE LEGISLATIVE RESEARCH COMMISSION TO STUDY PRODUCTS LIABILITY LAWS.

The General Assembly of North Carolina enacts:

Section 1.  Article 2 of the General Statutes Chapter 58 is amended by adding a new section to read:

"§ 58-21.2.  Reporting of products liability claims premiums and other information. — (a) Every insurance company providing products liability insurance or excess insurance above self‑insurance to one or more manufacturers, sellers, or distributors in this State shall file with the Commissioner not later than the first day of June in each year, a report containing the following information for the one-year period ending December 31st of the previous year; provided, however, that information for the period preceding June 30, 1979, need not be reported:

(1)        the total amount of earned premiums received during the year from insureds, resident or located in North Carolina, that are attributable to products liability insurance;

(2)        the total number of policies of insureds, resident or located in North Carolina, for which the insurance company provided products liability insurance;

(3)        the total number of insureds, resident or located in North Carolina, whose products liability insurance coverage the insurance company canceled or refused to renew and the reasons therefor;

(4)        the total number of products liability claims filed during the one-year period, broken down by the type of claims;

(5)        the total amount of reserves for the claims in subdivision (4) of this subsection that remained outstanding at the end of the one-year period;

(6)        the total amount paid in settlement or discharge of the claims in subdivision (4) of this subsection for each type of claims;

(7)        the total amount of outstanding reserves for claims filed in years prior to the one-year period; and

(8)        the total amount of reserves for incurred but not reported losses.

The report shall be in the format established by the Commissioner.

(b)        The information contained in the reports required by this section is to be used for internal statistical purposes only."

Sec. 2.  The Legislative Research Commission is authorized to study the products liability laws of this State, examine the effects of any 1979 General Assembly changes in the laws, and study the recommendations of the Task Force on Product Liability of the United States Department of Commerce and the availability of product liability insurance in North Carolina.

Sec. 3.  The Commission may report the results of its study to the 1981 General Assembly.

Sec. 4.  This act is effective upon ratification.

In the General Assembly read three times and ratified, this the 8th day of June, 1979.