NEW YORK–The head of the Property Casualty Insurers Associationof America has vowed to defeat the latest proposal from Sen. ArlenSpecter, R-Pa., for a federal fund to pay asbestos injuryclaims.

“We're going to fight this one. We're going to resist it. We'regoing to try to kill this one. It deserves to be killed,” ErnieCsiszar, president and chief executive officer of PCI, toldexecutives gathered for Standard & Poor's 23rd annual insuranceconference, “Insurance 2006: Rethinking Risk,” Tuesday in NewYork.

Beginning his remarks with a bit of sarcasm concerning theinsurers' contribution called for in the bill, he said, “It's awonderful piece of legislation. It shows how generous this industryhas to be–and can be. You have to write a $48 billion check.Eh.

“That's just chump change” to lawmakers in Washington, he said,noting that companies facing asbestos claims, under certainconditions, would make their contribution to the proposed $140billion fund over a period of time.

The $48 billion is “what you have in reserves,” he said, addingthat in return for writing the huge check, “you get another federalprogram to pay [that] out.”

He asserted it's probable that the legislation violates theConstitution (in particular, the takings clause of theConstitution). But by the time that issue “makes its way to theSupreme Court, your $48 billion's going to be gone.”

The second problem, he said, is when the asbestos fund runs outof money, “which it will,” the federal government can come back tothe industry for more money.

“It's a lousy piece of legislation,” said Mr. Csiszar, addingthat it's the kind of proposal that comes out when “there's noleadership from the White House,” which is preoccupied with thewar, and the “power vacuum gets sucked up” by the chairmen ofpowerful Senate committees.