Actuarial Notes

CAS Exam 6C Spring 2014, Question 4

Study guide: Exam 6C

Answer the following questions about asbestos litigation:

Part a (0.5 points)

Explain why the peripheral defendants (those accused of having asbestos either in their products or on their premises) could bear the majority of the costs of awards relating to asbestos use.

Part b (0.5 points)

It has been typical for plaintiffs' attorneys to join several plaintiffs in a group to file their claims against many defendants. Explain how this practice results in a more complicated and expensive process for resolving asbestos claims.

Part c (1 point)

Identify and briefly describe two potential reforms to mitigate the costs of the asbestos litigation system.

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