An influential Democratic senator urged the Senate leadership last week to delay consideration of asbestos injury fund legislation now planned for early February because support for passage is lacking.

The letter from Sen. Mark Pryor, D-Ark., seems to articulate the insurance industry consensus that the legislation, S. 852, does not have enough votes to prevail.

The industry expects Senate Majority Leader William Frist, R-Tenn., to bring the bill to the floor for a vote next month–as he has promised to do many times–but that the legislation will be rejected.

Analysts at Washington Analysis, which advises institutional investors on potential congressional action, have also repeatedly stated that there isn't sufficient support to pass the asbestos reform measure.

In his letter to Sen. Frist and Senate Minority Leader Harry Reid, D-Nev., Sen. Pryor said a resolution of “this country's asbestos health and litigation problem is long overdue,” adding that creation of a trust fund to do so “may be the most effective way of addressing it. However, I believe that a number of members continue to have concerns and questions about the fund and that such consideration may be premature.”

The bill, sponsored by Sen. Arlen Specter, R-Pa., chairman of the Senate Judiciary Committee, would create an alternative claims-handling system for workers injured by exposure to asbestos. Claims would be paid by a $140 billion trust fund through contributions from defendants, insurers and money in existing funds.

“I am concerned about the adequacy of the funding as provided in the bill,” Sen. Pryor noted. “In light of the recent Government Accountability Office report raising prior funding problems with compensation funds such as this one, and the warning from the Congressional Budget Office that similar trust funds have historically underestimated claims, my concerns are heightened.”

Additionally, he said, “I understand that a number of members from both sides of the aisle have raised a variety of other concerns regarding the proposed legislation.”

Special Reports /

Asbestos Reform On The Ropes

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