US insurers said they will not be able to support draft legislation for a $140 billion asbestos compensation fund without substantial modifications, according to a letter released on Tuesday. "While the latest draft represents improvements over earlier proposals in some areas, we continue to have serious reservations about key provisions, and without substantial modifications insurers will not be able to support the legislation," said the letter sent to Sen. Arlen Specter, a Pennsylvania Republican and author of the draft bill.
The letter, dated April 18, said this was a "unified insurance industry position" and was signed by the American Insurance Association, the National Association of Mutual Insurance Companies, and Reinsurance Association of America.
The letter complained the draft would let some asbestos injury claims leak back to the courts instead of being paid by the fund. It also criticised a provision that would prohibit liens on workers' compensation awards to asbestos victims who are also compensated by the fund.