Washington–Property-casualty insurers are lobbying the Senate to pass legislation that would shield gun manufacturers and retailers from liability if a legally sold gun is used in a crime.
Insurance industry support for the measure was projected through a letter signed by most property-casualty insurance industry trade groups and sent today to Senate Majority Leader William Frist, R-Tenn. It urged passage before senators leave on summer recess next week.
Signers included the American Insurance Association, the Council of Insurance Agents and Brokers, the Independent Insurance Agents & Brokers of America, the National Association of Mutual Insurance Companies, and the Property Casualty Insurers Association of America (PCI).
The measure is being supported by the National Rifle Association and opposed by the American Bar Association, among other groups.
The bill, S. 397, the Protection of Lawful Commerce in Arms Act, is on the Senate floor calendar under expedited procedures, which allows it to bypass committee action.
Passage by the Senate would be tantamount to enactment, since the more conservative House has passed similar legislation several times in the past.
A companion bill, H.R. 800, is awaiting House Judiciary Committee action. It passed the House in the last Congress, 285-145, and has been supported in the House by similar margin over the last several years.
The bill was introduced by Sen. Larry Craig, R-Idaho, and has 56 co-sponsors.
Besides easing the industry's concerns going forward, it would also end existing lawsuits.
Introduction of the bills followed recent civil settlements obtained by shooting victims who sued gun dealers.
According to the Philadelphia Daily News, judgments have been obtained by families of shooting victims in the Washington, D.C., sniper case who secured a $2.5 million settlement from a Washington State dealer. Families of two New Jersey police officers who were seriously wounded by a robbery suspect received $1 million to settle a case against a West Virginia dealer.
"We urge you to bring S. 397 to the Senate floor for debate before the Senate adjourns for the August recess and to vote 'no' on any amendments that may be introduced during floor consideration," the insurers said in a letter to Sen. Frist.
"In recent years there has been an increase in speculative lawsuits designed to achieve policy objectives through the judicial process," the letter said.
According to the letter, "Many of these suits are based on theories without a foundation in U.S. common law and jurisprudence and do not represent a bona fide expansion of the common law."
The letter said the firearms industry "has been overwhelmed by the costs of defending against these unwarranted suits" which "negatively affect the ability of these legitimate businesses to raise new capital, borrow money, establish credit, obtain insurance, attract new employees and retain valued employees."
The letter said that the bill "is a reasonable and carefully crafted bi-partisan measure designed to prevent abuses in our legal system while at the same time preserving the opportunity for legitimate cases to continue to be brought against wrongdoers."
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