This, the regulators said, indicates a “significant change” in the property-casualty industrys financial condition.

Moreover, they said, some experts say that $58.5 billion will be insufficient.

The letter was signed by Arkansas Commissioner Mike Pickens, who is the NAIC president; South Carolina Insurance Director Ernst N. Csiszar; NAICs vice president; Oregon Insurance Administrator Joel Ario; NAICs secretary-treasurer; and Texas Insurance Commissioner Jose Montemayor, who chairs NAICs p-c committee.

The letter said that individuals who have been harmed by asbestos should be afforded a reasonable opportunity to seek relief. However, the letter added, even the United States Supreme Court has called on Congress to address the issue of the extraordinary growth in asbestos claims.

Sen. Hatch strongly supports asbestos litigation reform.

“I dont think there can be any doubt that the crisis in asbestos litigation is a serious problem, and it continues to get worse as the abuse continues. And Congress has failed to act, even as the Supreme Court has suggested that we must resolve this train wreck,” he said in a recent statement.

Sen. Hatch added there is bipartisan concern over this issue in the Senate.

Gary Karr, a representative of the Washington-based American Insurance Association, praised NAIC for its letter.

“We are glad the NAIC is concerned about the asbestos crisis and we are glad it is taking part in the debate,” Mr. Karr said.

“The entire insurance community and its regulators are speaking with one voice on this crucial point,” he said. “Congress needs to pass asbestos litigation reform this year.”

Reproduced from National Underwriter Edition, March 31, 2003. Copyright 2003 by The National Underwriter Company in the serial publication. All rights reserved. Copyright in this article as an independent work may be held by the author.