Missouri: NAMIC Testifies on Asbestos/Silica Reform Legislation

Although House Bill 2029 will not move this session, NAMIC testified at the Missouri House Judiciary Committee's April 25 hearing on asbestos and silica reform legislation. The bill is based on the American Legislative Exchange Council's Asbestos and Silica Claims Priorities Act that focuses on the medical criteria for claims.

"Reasoned asbestos reform is a priority for NAMIC's members, and we strongly support HB 2029. We had hoped Congress would enact meaningful reform, but they have thus far failed to act. If necessary, we will address the issue state by state," testified NAMIC's State Affairs Manager Tami Stanton.

Lead testimony on the bill was provided by Mark Behrens on ALEC's behalf. In his remarks, Behrens highlighted the scope of the asbestos/silica litigation crisis facing the country:

At least 322,000 asbestos claims are now pending, and litigation may cost up to $195 billion on top of the $70 billion spent through 2002.
Recent studies have shown that up to 90 percent of the claimants who file asbestos claims today have no impairment.
Peripheral defendants are being ensnarled in litigation as a result of numerous asbestos-related bankruptcy filings. The number of asbestos defendants now includes more than 8,500 companies representing 85 percent of the U.S. economy.
There has been a recent surge in silica exposure claims by some asbestos personal injury lawyers. In 2005, a Texas District Court judge issued an opinion recommending that all but one of the 10,000 silica claims should be dismissed on remand because the diagnoses were fraudulently prepared.

Rep. Bryan Pratt, committee chair and sponsor of the bill, announced during the hearing that the legislation will be a priority in 2007 and that he plans to pursue the issue, perhaps with an interim committee, during the summer.

In other legislative activity, SB 837, which addresses the composition of insurance industry boards, has passed both chambers and is on its way Gov. Matt Blunt. Key to NAMIC is the new position for a NAMIC member on the Missouri Basic Property Insurance Inspection and Placement Program Governing Committee.

Looming large over the final days of the session is the weather-related claim provision amended into the Department of Insurance's bill SB 895 several weeks ago by Majority Floor Leader, Sen. Charlie Shields. The amendment prohibits rate adjustment and/or non-renewal of those who have weather claims. The Missouri Insurance Coalition continues to guide the industry's efforts to work with Shields on a possible compromise solution.

Direct questions to NAMIC State Affairs Manager Tami Stanton.

Posted: Monday, May 01, 2006 12:00:00 AM. Modified: Monday, May 01, 2006 9:54:55 AM.

Salary Survey: Discounts for Participation & Membership

(317) 875-5250 - Indianapolis | (202) 628-1558 - Washington, D.C.

Contact NAMIC | Press | Advertise | Sponsor

We are 1,400 property/casualty insurance companies serving more than 135 million auto, home and business policyholders, with more than $196 billion in premiums accounting for 50 percent of the automobile/homeowners market and 31 percent of the business insurance market. We are the largest and most diverse property/casualty trade association in the country, with regional and local mutual insurance companies on main streets across America joining many of the country’s largest national insurers who also call NAMIC their home. More than 200,000 people are employed by NAMIC members.