Insurers Blast Latest Wording For Asbestos Bill

Specifically, the letter, signed by officials of the American Insurance Association, the Reinsurance Association of America and the National Association of Mutual Insurance Companies (NAMIC), explained that "it is imperative that any trust fund provide insurers with both certainty and finality for our asbestos exposure."

A letter sent by another coalition of trade groups was even harsher. "The costs of this legislation to the industry are potentially devastating and are unacceptable to our members," said Carl Parks, senior vice president for government affairs at the Property Casualty Insurers Association of America (PCI).

Mr. Parks warned, "Unless substantial changes are made [to the draft bill], we will strongly oppose it."

The bill also was criticized by the AFL-CIO, implying that the draft is likely to undergo more revisions before it is introduced by Sen. Arlen Specter, R-Pa., chairman of the Judiciary Committee. Sen. Specter introduced the bill late today and said he plans to move it through committee next week.

The PCI letter was signed by NAMIC. David Winston, senior vice president-federal affairs, said in the letter with the PCI that "NAMIC will continue to work with Chairman Specter to address our concerns with the current draft."

Mr. Winston added, "Congress must address the current asbestos liability crisis by crafting legislation to ensure certainty and finality, affordability, effectiveness, and efficiency. There are people who have been physically injured or have died from exposure to asbestos, but the current legal system instead prevents the truly injured from obtaining just compensation."

In the company's letter to the committee, AFL-CIO president John Sweeney said the latest draft includes some important improvements such as increases in award levels for some disease categories and a bar against any liens on workers' compensation awards.

But it leaves "a number of serious deficiencies that must be corrected," Mr. Sweeney said. These include the elimination of compensation for a large group of lung cancer victims?a provision strongly supported by the insurance industry?and the absence of remedies for victims during the startup period before the fund is able to pay claims.

"In addition," the AFL-CIO letter says, "there are a set of issues, such as the statute of limitations, preemption and the treatment of claims if the fund sunsets, that will determine whether the compensation system works as intended for deserving claimants."

Updated April 20 10:53 a.m.