Despite the visible rift in the Senate, both parties met in the middle last night as legislators put the proverbial foot down on a major piece of asbestos legislation.

The proposed $140 billion private asbestos trust fund was designed to remove asbestos cases from the civil courts and speed payment to victims of asbestos exposure from the private fund, reports the Insurance Journal. The funds from the proposed trust were to come from manufacturers, insurers and other businesses affected by asbestos litigation; the Department of Labor would have been responsible for overseeing payments.

According to the Insurance Journal, some opponents of the measure feared that there wouldn't be enough money to cover all the claims, and would require a taxpayer bailout as a result. Still others said they were concerned that the bailout of large corporations could shortchange asbestos victims.

Nonetheless, the measure's co-sponsors, Sen. Arlen Specter and Sen. Patrick Leahy vow to bring the bill back for another go-around. Specter asserted that the trust is an essential tool to "solve the worst litigation crisis in the history of the American judicial system."

A May, 2005 report by the RAND Institute for Civil Justice found that the number of asbestos claims continues to rise--730,000 claims have been filed, with over 200,000 pending.

The asbestos issue is undeniably important to our health and economy, and as claims continue to rise, I think many of us in the insurance industry will be keeping our eye on the outcome.

[The Insurance Journal, on the asbestos ruling.]