Abstract
In 1985, pioneers in the environmental insurance industry set out to produce insurance products to fill the gap in coverages left by the exclusion of environmental liability in standard policies. The remainder of this book relies upon the experience of the industry. In the next two chapters, we describe the process involved in creating one of the first of this new generation of environmental insurance products: coverage to address liabilities associated with asbestos in existing facilities. The discussions provide considerable detail regarding the factors considered in creating a new product for this risk. The detail is necessary to link the theory outlined in the last chapter to the actual conditions found in practice. In this chapter, we will begin with a brief overview of the political and economic context surrounding the development of such coverage, and describe the risks associated with asbestos. Chapter 6 utilizes this information to discuss insurability and marketability conditions for the asbestos risk.
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Notes
Friable asbestos is easily pulverized and can become airborne. 2 ‘Practices and Proceedings for Asbestos Control, 1986, University of Kansas, The National Asbestos Training Center, 1986.
United States Environmental Protection Agency, EPA Study of Asbestos-Containing Materials in Public Buildings: A Report to Congress, February 1988.
Kakalik, James S. et al., Costs of Asbestos Litigation, RAND Institute for Civil Justice, Santa Monica, CA, R-3042-ICJ, 1983, p. v.
Ibid.
See Rees, Donald W., ‘Have Environmental and Toxic Tort Claims Created an Insurance Crisis: Where Do We Go From Here?’ Environmental and Toxic Tort Claims: Insurance Coverage in 1989 and Beyond, Commercial Law and Practice Course Handbook Series Number 495, (A4-4260), Practising Law Institute, New York, 1989, pp. 415–462. This work contains a discussion of insurance availability and, particularly, a report prepared by the United States General Accounting Office entitled “Hazardous Waste: Issues Surrounding Insurance Availability,” which was reprinted in Mealey’s Litigation Reports: Insurance, 2(1), November 10, 1987.
40 C. F. R. Section 763 Subpart E.
United States Environmental Protection Agency, “Managing Asbestos In Place: A Building Owner’s Guide to Operations and Maintenance Programs for Asbestos-Containing Materials, Pesticides and Toxic Substances” (TS-799), 20T-2003, July 1990. p. 28.
Ibid.
Ibid.
29 C. F. R. Section 1926.58.
29 C. F. R. Section 1910.1001.
29 C. F. R. Section 1910.134.
40 C. F. R. Section 763 Subpart G.
40 C. F. R. Section 61 Subpart M.
40 C. F. R. Section 763 Subpart E.
29 C. F. R. Section 1910, 20 C. F. R. Section 1915, and 29 C. F. R. Section 1926.
OSHA’s Final Rule for Occupational Exposure to Asbestos was published in 59 Fed. Reg. 153, August 19, 1994.
40 C. F. R. Section 61 Subpart M.
29 C. F. R. Section 1926.58.
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© 1997 Springer Science+Business Media New York
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Freeman, P.K., Kunreuther, H. (1997). Insuring Asbestos Risk: Background and Identification of Risk. In: Managing Environmental Risk Through Insurance. Studies in Risk and Uncertainty, vol 9. Springer, Dordrecht. https://doi.org/10.1007/978-94-011-5360-7_7
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DOI: https://doi.org/10.1007/978-94-011-5360-7_7
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