Asbestos Bill Concerns Insurers

In early February, a Senate Judiciary Committee held a hearing on federal asbestos litigation reform legislation. At the hearing, insurers expressed concern regarding certain provisions of the proposed legislation.

The American Insurance Association remains concerned about 'leakage' problems in the proposal, specifically mixed dust and silica claims. “Any federal trust fund proposal must not contain provisions that permit plaintiffs to recast asbestos claims as silica or mixed dust claims simply to avoid being placed into the trust fund, or to collect under the fund and then return to the tort system for a second try at compensation,” said Craig Berrington, senior vice president and general counsel for the American Insurance Association.

Although the Independent Insurance Agents and Brokers of America praised Specter for moving quickly to hold hearings on proposed asbestos legislation, the group would like to see additional protections to insulate insurers and manufacturers against potential insolvency and to avoid putting asbestos cases back into the court system.

“It is very important that the funding proposal be fair and explicitly stated, so that insurers do not risk being on the hook for more money than was envisioned all along,” said Charles Symington Jr., senior vice president of federal government affairs for the IIABA. “We also believe policy makers should not require insurers to pay vast sums into a trust fund that may not provide a final resolution to the problem.”