April 13th, 2005
A number of insurers and re-insurers have signed a petition to Senator Arlen Specter regarding the no-fault trust fund he plans to create in place of the current litigation system being used for those affected by asbestos exposure. The insurers involved included: American International Group Inc., Chubb Corp., Liberty Mutual Insurance Co. and Zurich Financial Services Group among others. All of the insurers stated that they respected the Senator’s efforts and that they would be willing to "remain committed to legislation that is workable, equitable and affordable."
The Senator has agreed to a $140 billion dollar trust fund for the payment of compensation claims to those affected by asbestos exposure, with the funds being added by defendants, insurers, and being subsidized by existing funds. However, the insurance companies involved in the petition have stated that they "have become increasingly skeptical that a trust fund can ultimately provide the certainty and finality all parties seek."
Having signed a petition for the Senator with regards to the legislation, the insurers have also added that they “respectfully suggest that efforts now be turned towards developing alternative legislation.”
Many others groups, such as support groups as well as asbestos victims themselves have been strongly opposed to the trust fund, which has been discussed by various senators for quite some time, but so far has never managed to get off the ground.
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