Legislation moving settlement of asbestos claims out of thecourt system will face its first key test in the Senate whensupporters seek to win approval for floor debate of their bill.

If successful, the bill — the Fairness in Asbestos InjuryResolution (FAIR) Act, S. 852 — will then face up to two weeks offloor debate, according to a schedule developed by Sen. ArlenSpecter (R-Pa.) chairman of the Senate Judiciary Committee, its keydrafter and primary supporter.

The bill also has the support of Sen. Patrick Leahy (D-Vt.),ranking minority member of the committee.

Specter and Leahy moved the bill through the committee last May,but getting it through the Senate will be tougher. If the bill getshung up in the Senate, there is little likelihood of anylegislation being enacted by the Congress this year, according toSpecter. Despite this near ultimatum, analysts still give it lessthan a 50-50 chance of passage through the Senate.

Despite near-unanimous opposition from the insurance industry,ACE Ltd. is offering qualified support. In a conference call withinvestors on its 2005 results last week, Evan Greenberg, chiefexecutive of ACE, said, “We are actively supporting the legislativeprocess and believe that satisfactory trust fund legislation canemerge from it.”

Ace will extend its support if certain changes are made to themeasure, he said.

The bill also has the support of the Asbestos Study Group, whosemembers include General Electric, General Motors, Honeywell, Pfizerand Ford, as well as the National Association of Manufacturers.

Metropolitan Life also said it supports the bill.

The U.S. Chamber of Commerce said that it “does have concerns”with aspects of the asbestos legislation reported out of theJudiciary panel, “but we expect the legislation to be furtherrefined as it moves through the full legislative process, includingthe Senate, House, and subsequent conference committee, so that thebest possible bill can be enacted.”

But to win passage, it will have to run a gauntlet of majorenemies including most insurance trade groups, most insurers, triallawyers, the AFL-CIO, and some consumer groups, including PublicCitizen. Most Democrats also oppose the bill, and conservativeRepublicans in the Senate are a potential stumbling block topassage.

This article originally appeared in The National UnderwriterP&C. For the complete article, please click here.