At the same time, the legislation would extend the statute of limitations for the filing of asbestos claims, so that individuals who contract mysothelioma years into the future would still be able to file claims.

The action comes on the heels of a vote by the House of Delegates of the American Bar Association calling for the establishment of medical standards for asbestos recoveries.

"This is another sign that meaningful asbestos litigation reform can be enacted this year," said Leigh Ann Pusey, senior vice president of federal affairs for the Washington-based American Insurance Association.

"It is most urgent that Congress act to make sure those who are truly sick from asbestos be treated fairly by enacting criteria that draw a line between those who are ill from asbestos and those who are not," she said.

Michael Baroody, executive vice president of the Washington-based National Association of Manufacturers, added, "The stars are aligning and momentum is gathering, finally, for action on this problem which has achieved scandalous proportions."

The Senate Judiciary Committee has scheduled a hearing on asbestos litigation for March 5.