Pennsylvania Act 1980-218 — INSURANCE CONSULTATION SERVICES EXEMPTION ACT

Act text

INSURANCE CONSULTATION SERVICES EXEMPTION ACT
                 Act of Dec. 12, 1980, P.L. 1177, No. 218             Cl. 40
                                  AN ACT

     Limiting the liability of insurers providing consultation
        services.

        The General Assembly finds that it is in the public interest
     to encourage insurers to provide consultation services with the
     goal of reducing injury, death or loss and to limit the civil
     liability of insurers for such activity.

        The General Assembly of the Commonwealth of Pennsylvania
     hereby enacts as follows:

     Section 1.  Short title.
        This act shall be known and may be cited as the "Insurance
     Consultation Services Exemption Act."
     Section 2.  Definitions.
        The following words and phrases when used in this act shall
     have, unless the context clearly indicates otherwise, the
     meanings given to them in this section:
        "Insurance consultation service."  Any survey, consultation,
     inspection, advisory or related services performed by an
     insurer, its agents, employees or service contractors incident
     to an application for insurance, a new policy of insurance, or
     an existing policy of insurance for a purpose of reducing the
     likelihood of injury, death or loss.
        "Insurer."  Any property or casualty insurance company
     authorized to transact insurance business in the Commonwealth.
     Section 3.  Exemption from civil liability.
        (a)  Exemption.--The furnishing of, or failure to furnish,
     insurance consultation services related to, in connection with
     or incidental to a policy of insurance shall not subject the
     insurer, its agents, employees or service contractors to
     liability for damages from injury, death or loss occurring as a
     result of any act or omission by any person in the course of
     such services.
        (b)  Application of section.--This section shall not apply:
            (1)  If the injury, loss or death occurred during the
        actual performance of consultation services and was caused by
        the negligence of the insurer, its agent, employees or
        service contractors which was a proximate cause of the
        injury, death or loss.
            (2)  To any consultation services required to be
        performed under the provisions of a written service contract
        not incidental to a policy of insurance.
            (3)  In any action against any insurer, its agents,
        employees or service contractors for damages caused by the
        act or omission of said insurer, its agents, employees or
        service contractors in which it is judicially determined that
        such act or omission constituted a crime, actual malice or
        gross negligence.
        (c)  Notice.--The provisions of subsection (a) shall not be
     effective and applicable unless the insurer furnishes the
     insured with written notice of the provisions of this act. Such
     notice shall be provided the insured by the insurer at the time
     the policy is issued or written and at each subsequent renewal
     thereof. The manner in which the notice shall be given and its
     specific contents shall be approved by the Insurance
     Commissioner.
     Section 4.  Construction of act.
        (a)  General application.--This act shall apply to all
     insurance consultation services rendered incident to policies of
     property or casualty insurance.
        (b)  Workmen's compensation.--Nothing in this act shall be
     deemed or construed to apply to the immunities and protections
     provided by section 305, act of June 2, 1915 (P.L.736, No.338),
     known as "The Pennsylvania Workmen's Compensation Act."
     Section 5.  Effective date.
        This act shall take effect January 1, 1981.