Agents Look To Limit Asbestos Claims
The Independent Insurance Agents and Brokers of America is ratcheting up grassroots efforts to limit the rapidly expanding number of questionable asbestos claims.
IIABA said it is forging an industry interest group and pursuing legislation aimed at preventing plaintiff attorneys from taking advantage of asbestos exposures. The Alexandria, Va.-based group is planning to form a coalition with insurers, businesses and others interested in battling efforts by plaintiff attorneys to expand litigation, which prolongs the "nightmare" for defendants and insurers.
"As the major businesses caught-up in the litigation maze have gone bankrupt, trial lawyers are looking to new defendants and their insurance companies for settlements," said IIABA President Thomas B. Ahart.
"Many companies have a dubious connection to asbestos, but this fact has not deterred the thirst of plaintiff lawyers for the deepest pockets to pay judgments–namely, insurance companies," added Mr. Ahart, who is president of Ahart, Frinzi & Smith Insurance in Phillipsburg, N.J.
"As an integral part of the insurance industry, agents and brokers cannot sit on the sidelines while this issue rages around us," observed Robert A. Rusbuldt, IIABA's chief executive officer. "We must become engaged in the escalating asbestos-litigation issue before it impacts our businesses through yet-unforeseen circumstances, such as diminished underwriting capacity in a range of markets offered through our insurance company partners."
IIABA said it began its work on the asbestos issue when, last month, it joined the Asbestos Alliance, a coalition of attorneys, businesses, insurers and others that advocates a fair solution to the growing asbestos-litigation problem.
The alliance is working for congressional enactment of a legislative solution that ensures those who are ill from exposure to asbestos-containing products are fairly compensated. It also helps keep defendant companies financially secure so they can pay present and future claims.
IIABA said it plans to increase the frequency of its lobbying efforts on Capitol Hill to enact legislation that establishes objective medical criteria for asbestos-related impairment, Mr. Rusbuldt noted in a statement.
The aim, he continued, is to:
Identify ill- and non-ill individuals in litigation.
Reform the statutes of limitation and other rules to remove incentives for premature filings.
Eliminate case consolidations that lead to quick settlements with healthy people.
Eliminate "forum shopping" by plaintiff lawyers seeking the most-favorable courtroom to hear a case.
The association cited a recent article in The New York Times that said businesses and their insurance companies have spent more than $30 billion to defend and settle asbestos lawsuits. However, IIABA said that figure pales besides the total payout–in excess of $250 billion–that analysts foresee.
"We will work with everyone who wants to bring a sense of rationality and reasonableness to asbestos litigation," Mr. Rusbuldt said in a statement. "The plaintiffs bar cannot be allowed to search for the [most lucrative] purse to satisfy their seemingly endless desire to push the asbestos issue to new and further heights."
Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, August 5, 2002. Copyright 2002 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.
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