Orlando, Fla.--The head of a Washington-based business lobby group said yesterday he expects to see federal legislation approved to deal with asbestos injury claims, but it could contain provisions that encourage additional workers' compensation claims.

"Support is so intense I believe we will see asbestos bill enactment," said Eric Oxfeld, president of Strategic Services for Unemployment & Workers' Compensation, speaking here at the 60th Annual Workers' Compensation Educational Conference, sponsored by The National Underwriter Company and the Florida Workers' Compensation Institute Inc.

Mr. Oxfeld appeared on a panel discussion of National Trends in Workers' Comp. He warned an audience of workers' comp professionals that advocates of comp system reform can never let their guard down because their opponents never rest.

"You can't pass a law and walk away. The other side is there every day trying to chip away," he cautioned.

Regarding national legislation activity, he believes asbestos liability reform will have a good chance of passage because so much of the business sector has been affected by the mountain of asbestos claims. He added that plaintiffs with injuries "are dying before their case gets heard."

Mr. Oxfeld noted that proposals for the asbestos measure include eliminating comp system payers' right to recover a subrogation claim from workers reimbursed for their injury through a lawsuit.

If such double recovery is allowed, Mr. Oxfeld said, it may encourage workers who are presently barred from collecting twice to seek workers' comp benefits. In addition, businesses are so desperate to solve the avalanche of lawsuits that they may go along, he opined.

Concerning renewal of the Terrorism Risk Insurance Act, the federal backstop for insurers' terrorism losses, Mr. Oxfeld said if TRIA is not extended when it expires at the end of the year the workers' comp system "is not going to be there."

He noted that while comp insurers have $30 billion in capital, it is estimated that one act of terrorism could amount to a $90 billion loss.

One legislative and regulatory issue for which there appears no easy, clear cut answer is that of illegal aliens who are injured on the job.

Mr. Oxfeld said if illegal workers are simply told to "get lost" when they get hurt, it could be a windfall for employers and encourage businesses to hire illegal aliens.

Panelist Michael Nolan, president of the California Workers' Compensation Institute, said illegal aliens frequently use false documents to obtain employment and the issue arises whether it is legitimate to compensate someone who uses such methods to obtain work.

He said the issue of paying workers' comp to illegal aliens is currently one that is being thrashed out in the California court system.

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.