ASBESTOS BILL A GOOD START, BUT MORE PROTECTIONS NEEDED
Big “I” expresses concerns about potential insolvency, return to court system
WASHINGTON, D.C., Jan. 11—The Independent Insurance Agents & Brokers of America (the Big “I”) applauds Senate Judiciary Committee Chairman Arlen Specter (R-Pa.) for moving quickly to hold hearings on proposed asbestos legislation, but would like to see additional protections added to insulate insurers and manufacturers against potential insolvency and to avoid putting asbestos cases back into the court system.
The Big “I” joined today with several industry partners to address these concerns in a hearing before the Judiciary Committee on the Fairness in Asbestos Injury Resolution (FAIR) Act. Specifically, the industry coalition seeks fairness in funding, with insurers paying appropriate amounts toward a proposed trust fund, as well as a national solution providing finality and certainty, with no leakage back into the tort system.
“We are gratified to see Chairman Specter take action quickly on this issue, and we hope to work with him and the committee to ensure that any areas of concern can be remedied to the satisfaction of all parties,” says Charles E. Symington Jr., Big “I” senior vice president of federal government affairs.
On the first point, the industry coalition expresses concern that the most recent draft of the asbestos litigation legislation contains no aggregate payment levels, which makes it impossible to determine the cost of the proposed trust fund. Insurers are pledged to pay in a maximum of $46 billion to the trust fund. The industry partners also note that they are concerned about paying these massive contributions into the trust fund when the proposed legislation leaves the door open for a potential return to the legal 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,” Symington says. “We also believe policymakers should not require insurers to pay vast sums into a trust fund that may not provide a final resolution to the problem.”
Regarding the latter point, the Big “I” and its industry partners seek provisions that would avoid the reversion of claims to the courts. The coalition suggests that the bill should clearly terminate the litigation system and provide for timely implementation of the trust fund, to avoid any potential reasons for a return to the tort system. This is important not only to provide fairness and certainty to those paying compensation, but also to provide timely justice to individuals who truly have been injured.
Founded in 1896, the Big “I” is the nation’s oldest and largest national association of independent insurance agents and brokers, representing a network of more than 300,000 agents, brokers and their employees nationally. Its members are businesses that offer customers a choice of policies from a variety of insurance companies. Independent agents and brokers offer property and casualty insurance, employee benefit plans and retirement products. Web address: www.independentagent.com.
###