What Does an Insurance Sales Producer Do?

Product liability refers to a type of legal liability that, due to product defects, causes personal injury or property loss to consumers, users, or other third parties of the product, and the producer or seller should be responsible for compensation separately or jointly. In the field of liability insurance, product liability insurance is a rapidly developing type of insurance. Retailers, wholesalers, and manufacturers are considered legally responsible for injuries caused by the use or consumption of goods that leave the sales and production premises.

Product Liability

(Responsibilities of product manufacturers and sellers)

Right!

Product liability refers to a type of legal liability that, due to product defects, causes personal injury or property damage to consumers, users, or other third parties of the product, and the producer or seller should be individually or jointly responsible for compensation in accordance with the law. In the area of liability insurance,

Product liability is also called "product defect liability". When consumers' personal or property damage is caused by product defects, the product manufacturers and sellers shall bear the tort liability according to law. Product defects referred to in tort law include both product quality defects and unexplained dangerous product use defects. According to the laws of our country and most countries, when a product defect causes damage, the product manufacturer and seller shall bear no fault liability and joint and several liability; however, if the damage is caused by the fault of the transporter or a third party, the joint responsible person shall Responsibility can be recovered from them after taking responsibility. ^[1]

(1) Produced or sold products that did not meet product quality requirements. That the product exists endangers the person and others

There are two legal systems for product liability in foreign countries. One is the absolute liability system represented by the United States, and the other is the negligence liability system represented by Western Europe and Japan. However, the development trend is to implement the absolute liability system. The absolute responsibility system is also called strict responsibility system. Under this system. A person is legally responsible even if he does his best to take care to avoid harming others. In other words, although a person does not have a clear fault, he is still liable for innocent victims.

1. For general civil tort liability, the principle of fault (including intentional and negligent) liability is applied. While following

The current product liability in China is mainly based on the

Product quality is composed of various elements, which are also called the characteristics and characteristics of the product. Different products have different characteristics and characteristics, and their sum constitutes the connotation of product quality. Product quality requirements reflect the characteristics of the product and meet the characteristics

Product Liability Insurance

Product liability insurance refers to the liability of legal compensation when a producer or seller of a product (including a wholesaler and a retailer) causes a third party's personal injury or property damage due to an accident involving a product produced or sold by it Compensation by the insurance company.

Manufacturers, exporters, importers, retailers, and repairers, all of whom may be liable for losses caused by product accidents, can insure product liability insurance. Depending on the needs of the specific situation, it can be insured by any of them, or it can be insured by several of them or all of them. The insured of product liability insurance, in addition to the insured itself, upon application of the insured, after the insurance company agrees, other interested parties can also be regarded as the insured. If necessary, the insurance premium will be increased, and the There is no recourse for mutual responsibilities. Among the parties concerned, the manufacturer shall bear the greatest risk, unless the other parties have reassembled, modified, repaired, changed the packaging or the instruction manual, and other acts, and caused product accidents, which shall be the responsibility of the party concerned, Any problems caused by the original defect of the product must be traced back to the manufacturer.

Producer exemption

(1) The product has not been put into circulation;

(2) When the product is put into circulation, the defect causing damage does not exist yet;

(3) The level of science and technology at the time the product is put into circulation has not been found to be defective.

At the same time, the law stipulates that producers and sellers shall not be liable for damages caused by the victim s intentional damage; if damage is caused by the fault of the victim, the producers and sellers may be less liable for damages.

Limitation on Liability for Product Liability. According to Article 45 of the Product Quality Law, the limitation period for litigation of product liability is 2 years, calculated from the date when the parties know or should know that their rights have been infringed. The maximum length cannot exceed 10 years, calculated from the date of delivery of the defective product to the original consumer, except for those that have not exceeded the express period of safe use.

Features

1. Intangible subject matter:

The subject matter of this insurance type is the legal liability of the insured and is intangible.

2. Adopt the "claims system":

That is, as long as the insured submits a claim to the insurance company within the insurance period, if it is an insured accident, the insurance company must bear the liability for compensation.

3. Independent claims processing:

Insurance companies have absolute control over claims processing.

4. Differences from "public liability insurance":

The accident must occur outside the place of manufacture or sale of the insured and the ownership of the product has been transferred to the user or seller.

content

(1) Insured and insured

Anyone who is liable according to law for damage to others or damage to property due to a product accident can become an insurer of product liability insurance. For example, manufacturers, exporters, importers, wholesalers, retailers, and repairers, etc., can all take out product liability insurance. The insured can be one, several or related parties, depending on the specific circumstances and needs. In addition to the insured being the insured of course, other relevant parties proposed by the insured and agreed by the insurer may also be included in the insurance policy as the insured. The liabilities between the insured are generally not recoverable from each other.

(2) Scope of insurance liability

The liability of the insurer is divided into two aspects:

1. Consumers or anyone else's personal injury or property damage caused by product accidents shall be the responsibility of the insured according to law. The insurer, when fulfilling his liability for the insured, should grasp:

The product accident must occur within the validity period of the insurance;

Accidents must be "accidental" and "incidental";

The maximum amount of compensation cannot exceed the compensation limit specified in the policy.

2. Litigation, defense costs and other costs agreed upon by both parties after the product accident.

(3) Exclusions

Product liability insurance excludes the following liabilities or losses:

1. Contractual liability assumed by the insured, unless such liability becomes legal liability.

2. Other legal liabilities that are not within the scope of product liability, for example, the employer's liability for work-related injuries to his employees can be covered by labor insurance or employers' liability insurance.

3. Loss of property that is owned, taken care of or controlled by the insured.

4. Liabilities and expenses caused by accidents of products that the insured has not produced or sold in accordance with relevant laws and regulations.

5. The loss of the product itself and the cost of recycling the defective product are covered by the product guarantee insurance.

(4) Compensation limit

Product liability insurance basically has provisions for compensation limits. Compensation limits are usually proposed by the insured to the insurer according to actual needs, and are specified in the policy after the parties have agreed. Product liability insurance implements a limit for each accident and a cumulative policy limit, that is, the insurer specifies a maximum compensation amount for each product accident, and a maximum limit for the cumulative compensation during the insurance period. The level of the product liability insurance compensation limit is mainly determined by two factors: one is the degree of loss that may be caused by a product accident; the other is the region and country.

(5) Duration of insurance and limitation of claims

The term of product liability insurance is the same as that of general property insurance. It is usually one year, and renewal insurance means should be applied upon expiration. Whether the insurer is liable for product liability, in addition to grasping the scope of liability and the limits of excluded liability, depends on whether the product accident occurred during the insurance period. In order to make the insured's insurance policy continue to be effective and to obtain continuous insurance protection, the insurer has introduced a longer-term insurance policy. Chinese insurance companies also provide liability insurance for certain export products with a term of 3 to 5 years or more. However, insurance premiums are still collected on an annual basis, and the rates can be reduced from year to year. The time limit for claiming for product liability insurance is mainly determined on the basis of the relevant provisions in the insurance contract and the law issued by the authorities where the product accident occurred, and is generally limited to 3 years.

Terms

Limitation of Liability

During the term of this insurance, personal injury, illness, death, or property of the person who uses, consumes, or manipulates the product or commodity due to an accident in the covered area caused by the product or commodity produced or sold by the insured When the insured is responsible for losses in accordance with the law, the company shall be responsible for compensation within the agreed compensation limit in accordance with the provisions of this insurance policy.

Exclusions

The company is not responsible for the following:

1. The liability of the insured under the agreement with others, but even if there is no such agreement, the liability of the insured is not limited to this limit;

2. Liabilities that should be borne by the insured under the labor law;

3. Liability assumed by the insured to the employees according to the employment relationship;

4. Loss of the insured product itself;

5. Loss of product return and exchange;

6. Loss of property owned, kept or controlled by the insured;

7. The insured's deliberately illegal production or sale of products or commodities caused personal injury, illness, death or property damage to anyone;

8. Liability caused by air, land, water pollution and other various pollution caused by the insured products;

9. Liability for damage to the aircraft or ship caused by the products of the insured;

10. Liability for any consequences directly or indirectly caused by war, war-like acts, hostilities, armed conflicts, terrorist activities, treason, coups;

11. Liability for any consequences directly or indirectly caused by strikes, riots, civil disturbances or malicious acts;

12. Direct or indirect liability caused by nuclear fission, nuclear fusion, nuclear weapons, nuclear materials, nuclear radiation and radioactive pollution;

13. Fines, fines, punitive damages;

14. The deductible amount specified in the insurance policy schedule or relevant clauses shall be borne by the insured.

Compensation

1. In the event of any accident or lawsuit covered by this insurance policy:

(1) Without the written consent of the company, the insured or his representative shall not make any commitment or rejection, bid, agreement, payment or compensation to the claimant. When necessary, the company has the right to take over the defense of any lawsuit or claim in the name of the insured;

(2) The company has the right to claim compensation from any responsible party in the name of the insured for the benefit of the company. Without the company's written consent, the insured shall not accept the payment or compensation arrangements made by the responsible party for the relevant loss or waive the right to claim against the responsible party, otherwise the consequences arising therefrom will be borne by the insured;

(3) In the process of litigation or claim processing, the company has the right to handle any lawsuit or resolve any claim case by itself, and the insured is obliged to provide the company with all necessary information and assistance.

2. For the same batch of products or commodities produced and sold, the personal injury, illness or death of multiple persons or the loss of property of multiple persons due to the same reason shall be regarded as the loss caused by one accident.

3. The term of claim of the insured shall not exceed two years from the date of loss.

Obligations of the insured

The insured and its representatives shall strictly perform the following obligations:

1. When applying for insurance, the insured or his representative shall provide true and detailed answers or descriptions to the questions listed in the application for insurance and other questions raised by the company.

2. The insured and his representative shall pay the insurance premiums on schedule according to the provisions in this insurance policy schedule and the approval slip.

3. After the insurance period expires, the insured shall notify the company in writing of the total value of the products or commodities produced or sold during the insurance period as the basis for calculating the actual insurance premium. If the actual insurance premium is higher than the insurance premium received in advance, the insured shall pay the difference. Conversely, if the insurance premium received is higher than the actual insurance premium, the company will refund the difference, but the actual insurance premium shall not be lower than the minimum insurance premium.

The company has the right to require the insured to provide data on the total value of products or commodities produced or sold within a certain period of time at any time during the insurance period. The company also has the right to send personnel to check the relevant books or records of the insured and verify the above data.

4. In the event of any accident covered by this insurance policy, the insured or his representative shall:

(1) notify the company immediately and provide a written report on the occurrence, cause and extent of the accident within seven days or within the time limit extended by the company's written consent;

(2) When a lawsuit is likely to occur, notify the company in writing immediately and send it to the company immediately after receiving a court summons or other legal documents;

(3) According to the requirements of the company, provide all supporting documents, materials and documents as the basis of the claim.

5. If a defect found in an insured product or commodity indicates or indicates that similar defects also exist in other insurance products or commodities, the insured shall immediately investigate and correct the defect at its own expense, otherwise, due to similar defects All losses caused shall be borne by the insured.

General

1.Effect of the policy

The insured's strict compliance with and fulfillment of the provisions of this insurance policy is a prerequisite for the company to assume liability for compensation under this insurance policy.

2. The policy is invalid

If the insured or its representative fails to report, misreports, misreports or conceals the substance of this insurance, this insurance policy will be invalid.

3. Risk change

During the insurance period, if the insured produces or sells a new product or changes in the chemical composition of the insurance product, it shall notify the company in writing within ten days and pay the additional insurance premium according to the company's requirements, otherwise this insurance This product will not be expanded.

Unless the company agrees in writing, this insurance policy will automatically terminate in the following circumstances:

(1) the insured loses his insurance benefits;

(2) Expansion of underwriting risks.

After the termination of this insurance policy, the company will refund the unexpired part of the insurance premiums under this insurance policy on a daily basis.

4. Cancellation of policy

The insured may apply for cancellation of this insurance policy at any time in writing, and the company may notify the insured to cancel this insurance policy 15 days in advance. For the insurance premiums in the period in which this insurance policy has been in effect, the former company will charge them on a monthly basis and the latter will charge them on a daily basis.

5. Loss of equity

If any claim contains false elements, or the insured or its representative resorted to fraudulent attempts to obtain benefits under this insurance policy, or any loss was caused by the intent or indulgence of the insured or its representative, the insured The person will lose all his rights under this insurance policy. The insured shall be responsible for all losses arising therefrom, including the compensation paid by the company.

6. Reasonable inspection

The company's representative has the right to inspect the risk situation of the insured's house, machinery, equipment, work and products or commodities at any appropriate time. The insured shall provide all facilities and details and information required by the company to assess the relevant risks, but the above inspection does not constitute any commitment of the company to the insured. If the company's inspectors find any defects or dangers, they will notify the insured in writing, and the company will not be responsible for all the responsibilities related to or caused by the defects until the defects or dangers are not eliminated and the company is satisfied. .

7. Duplicate insurance

When this insurance policy is responsible for compensating for losses, expenses or liabilities, if other insurances covering the same exist, the company is only responsible for apportioning the compensation regardless of whether the insured or others are insured in their name or whether the insurance is indemnified or not. Responsibility.

8.Equity transfer

If the responsible loss under this insurance policy involves other responsible parties, regardless of whether the company has compensated the insured, the insured shall immediately take all necessary measures to exercise or retain the right to claim against the responsible party. After the company pays the compensation, the insured person shall transfer the right of recovery to the responsible party to the company, hand over all necessary documents, and assist the company to recover from the responsible party.

9. Dispute resolution

All disputes between the insured and the company concerning this insurance shall be resolved through friendly negotiation. If the negotiation fails, you can apply for arbitration or file a lawsuit in court. Unless otherwise agreed in advance, arbitration or litigation shall be conducted at the place of the defendant.