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The following table reflects approximate information about the claims for the Asbestos Liability against Air & Liquid and the Corporation for the years ended December 31, 2021, and 2020. The majority of the settlement and defense costs were reported and paid by insurers. Because claims are often filed and can be settled or dismissed in large groups, the amount and timing of settlements, as well as the number of open claims, can fluctuate significantly from period to period.
|
|
|
2021 |
|
|
2020 |
|
|
Total claims pending at the beginning of the period |
|
|
5,891 |
|
|
|
6,102 |
|
|
New claims served |
|
|
1,233 |
|
|
|
1,016 |
|
|
Claims dismissed |
|
|
(605 |
) |
|
|
(855 |
) |
|
Claims settled |
|
|
(422 |
) |
|
|
(372 |
) |
|
Total claims pending at the end of the period (1) |
|
|
6,097 |
|
|
|
5,891 |
|
|
Administrative closures (2) |
|
|
(2,941 |
) |
|
|
|
|
|
Total active claims pending at the end of the period (2) |
|
|
3,156 |
|
|
|
|
|
|
Gross settlement and defense costs paid (in 000’s) |
|
$ |
23,215 |
|
|
$ |
27,437 |
|
|
Average gross settlement and defense costs per claim resolved (in 000’s) (3) |
|
$ |
22.60 |
|
|
$ |
22.36 |
|
|
|
(1) |
Included as “open claims” are approximately 661 and 688 claims in 2021 and 2020, respectively, classified in various jurisdictions as “inactive” or transferred to a state or federal judicial panel on multi-district litigation, commonly referred to as the MDL. |
|
|
(2) |
In 2021, the Corporation adopted the same methodology used by the liability expert who values the Corporation’s asbestos claims, in order to better align the Corporation’s data with the expert’s liability valuation. The expert’s methodology treats all claims filed six or more years ago as “administratively closed.” Therefore, the Corporation changed its prior practice of reporting “Total claims pending at the end of the period” into two categories – “Administrative closures” and “Total active claims at the end of the period.” Administrative closures now include (i) those claims that were filed six or more years ago; (ii) claims that were previously classified in various jurisdictions as “inactive;” and (iii) claims that were transferred to a state or federal judicial panel on multi-district litigation. Collectively, these claims are unlikely to result in any liability to the Corporation. Accordingly, the Corporation believes that presentation of “Total active claims pending at the end of the period” is a better indicator of total claims which may result in future payment. |
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(3) |
Claims resolved do not include claims that were administratively closed. |
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