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Asbestos Trust Fund Legislation Federal Efforts

Asbestos Trust Fund Legislation Federal Efforts. November 10, 2005 Mary Z. Seidel Reinsurance Association of America. 108 th Congress- Medical Criteria, Trust Fund? Trust Fund Here We Go.

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Asbestos Trust Fund Legislation Federal Efforts

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  1. Asbestos Trust Fund Legislation Federal Efforts November 10, 2005 Mary Z. SeidelReinsurance Association of America

  2. 108th Congress- Medical Criteria, Trust Fund? Trust Fund Here We Go 108th Congress (2003-2004) Chairman Senate Judiciary Committee Introduces $90 Billion No Fault Trust Fund legislation. Key Components: Insurer Share- $45 Billion (28 NPV), No Return to the Tort System, No Orphan Share liability. Senate Judiciary Committee Marks up the Legislation- result $114 Billion, plus Billions in Contingency funding (insurers share increased by $14 billion) Majority Leader Frist reintroduces bill and limits insurer share to $46 billion. Insurer, Labor, and Trial Bar opposition Cause bill to Fail in 108th Congress

  3. 109th Congress - New Chairman New Effort • In 109th Congress Chairman Specter puts $140 Billion • no-fault back on table • - In May Senate Judiciary Approves Trust Fund legislation • Key Components for insurance industry: • - Insurer funding: $46,025 billion paid out over 27 • years (30.89 NPV) • - Where’s the Money? • - Significant upfront funding – over $20 billion in first 5 • years • - Allocation- Insurance Commission to determine • insurance a Company obligation • - Orphan Share Liability • - Return to the Tort System if Fund fails

  4. Legislation Stalls, Supreme Court Nominations, Industry Opposition - Significant insurance industry opposition to the Bill - Labor Unions and Trial Bar oppose legislation - Major Defendant Companies support – GE, Honeywell, Pfizer, General Motors - Key Senate Republicans still oppose - Chairman Specter still pushing for consideration, possibly next Spring? - House of Representatives waiting, interested in medical criteria solution. May charge ahead!

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