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

If successful, the bill — the Fairness in Asbestos Injury Resolution (FAIR) Act, S. 852 — will then face up to two weeks of floor debate, according to a schedule developed by Sen. Arlen Specter (R-Pa.) chairman of the Senate Judiciary Committee, its key drafter 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 gets hung up in the Senate, there is little likelihood of any legislation being enacted by the Congress this year, according to Specter. Despite this near ultimatum, analysts still give it less than 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 with investors on its 2005 results last week, Evan Greenberg, chief executive of ACE, said, “We are actively supporting the legislative process and believe that satisfactory trust fund legislation can emerge from it.”

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

The bill also has the support of the Asbestos Study Group, whose members include General Electric, General Motors, Honeywell, Pfizer and 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 the Judiciary panel, “but we expect the legislation to be further refined as it moves through the full legislative process, including the Senate, House, and subsequent conference committee, so that the best possible bill can be enacted.”

But to win passage, it will have to run a gauntlet of major enemies including most insurance trade groups, most insurers, trial lawyers, the AFL-CIO, and some consumer groups, including Public Citizen. Most Democrats also oppose the bill, and conservative Republicans in the Senate are a potential stumbling block to passage.

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

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