Insurers less than impressed with latest asbestos plan

U.S. insurers are reacting with something less than enthusiasm to a Democratic proposal for an asbestos fund.
Senate Minority Leader Tom Daschle of South Dakota put forward the proposal, which would establish a fund of US$140 billion for victims of asbestos-related diseases. Daschle had previously proposed a fund of US$145 billion.
The amount is now the same as that proposed by Republican Senate Majority Leader Bill Frist of Tennessee. While the Senate Judiciary Committee had accepted a proposal many months ago, the legislation has been stalled by partisan bickering over terms and funding levels.
The Daschle compromise would also change the system for assigning court cases to limit “venue shopping” by plaintiffs’ attorneys.
The insurance industry, however, remains concerned over issues including how much it would ultimately pay into the fund, as well as how pending cases would be treated under the fund.
“Insurers insist that any asbestos litigation reform measure meet the core principles of certainty, finality, equity and affordability,” says Carl Parks, senior vice president of the Property Casualty Insurers Association of America (PCI). “We must view any offer in the context of the larger and more comprehensive legislative package and cannot accept any terms until we see the full details of the total proposal.”
The U.S. Congress is set to adjourn prior to the upcoming election, in early October.