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HR 3088 IH
111th CONGRESS
1st Session
H. R. 3088
To require an automobile manufacturer that the Federal Government has an ownership interest in or that has an outstanding loan from the Federal Government to purchase liability insurance from an insurance company.
IN THE HOUSE OF REPRESENTATIVES
June 26, 2009
Mr. CARSON of Indiana (for himself and Mr. BRALEY of Iowa) introduced the following bill; which was referred to the Committee on Financial Services
A BILL
To require an automobile manufacturer that the Federal Government has an ownership interest in or that has an outstanding loan from the Federal Government to purchase liability insurance from an insurance company.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
SEC. 2. FINDINGS.
The Congress finds the following:
(1) Product liability is an important legal mechanism to ensure that those who make products available to the public are held responsible for the injuries those products cause.
(2) American consumers have a legal right to obtain compensation for injuries caused by defectively designed or built cars.
(3) Under its purchase agreement, newly restructured Chrysler will not have product liability for millions of existing Chrysler vehicles currently on the road, potentially leaving hundreds of individuals and families uncompensated for injuries caused by vehicle defects.
(4) Under ongoing bankruptcy proceedings, General Motors is likely to sell its assets under similar terms to those of Chrysler, in this case leaving those who have been or might be injured by any of the tens of millions of existing General Motors vehicles with no effective legal recourse for product liability.
(5) There are more than 10 million Chrysler and 30 million General Motors vehicles currently on the road that are subject to safety recalls and, on average, there will be 500 to 1,000 serious auto injuries or fatalities in these vehicles every year.
(6) Taking away the legal right to seek compensation for injuries will result in no accountability for companies that put cars with defects on the market.
(7) Without compensation, many innocent victims will be left struggling to pay massive medical bills while potentially being unable to work. These health care and disability costs will be borne by State and Federal governments, at a time when they can least afford it.
SEC. 3. INSURANCE REQUIREMENT.
(a) In General- Any automobile manufacturer that the Federal Government has an ownership interest in or that has an outstanding loan from the Federal Government shall purchase liability insurance from an insurance company.
(b) Insurance Specifications-
(1) IN GENERAL- The liability insurance described under subsection (a) shall provide products liability coverage in sums that are actuarially reasonable for--
(A) all products that the manufacturer has marketed or sold in the United States;
(B) all products that any predecessor corporation of the manufacturer has marketed or sold in the United States; and
(C) all future products that the manufacturer markets or sells in the United States.
(2) SUCCESSOR ENTITY COVERAGE- The liability insurance described under subsection (a) shall provide for the coverage of any successor entity of the manufacturer as an additional insured.
(3) SELF-RETENTION LIMITS- The liability insurance described under subsection (a) may have self-retention limits, but such limits may not be greater than $200,000 per claim.
(c) No Defense Based on Bankruptcy- If an automobile manufacturer described in subsection (a), or any successor entity, is a named insured under a liability insurance plan, any defense predicated upon Bankruptcy to a liability claim involving such plan shall be null and void.
(d) Rulemaking- Not later than 90 days after the date of the enactment of this Act, the Administrator of the National Highway Traffic Safety Administration shall initiate a rulemaking proceeding to implement the insurance requirement under this section.
(e) Civil Penalty- The Administrator of the National Highway Traffic Safety Administration may impose a civil penalty against any automobile manufacturer for each violation of subsection (a) in an amount not to exceed 5 times the amount the Administrator determines it would have cost such manufacturer to purchase liability insurance described under subsection (a).
U.S. Congress - Text of H.R.3088 as Introduced in House Jeremy Warriner Consumer Protection Act of 2009
