Wendy Fisher, who chairs the National Risk Retention Association's Government Affairs Committee, said the move is "great. I think this will be a big boost to the risk retention group industry." Ms. Fisher is corporate secretary, regulatory and business affairs for National Home Insurance Company in Aurora, Colo.

Jon Harkavy, a member of the board of directors of the Vermont Captive Insurance Association, and vice president and general counsel with Risk Services in Arlington, Va., said that, "I'm excited about it. It's probably going to be one of the larger ones, and I think it's important for risk retention groups to develop a core constituency."

He continued that "this is an important step. We have [risk retention groups for] colleges and universities, but the more large ones the better, because it gives us a political force in the industry."

The new company would cover U.S. airlines for passenger and third-party war and terrorism risk, said Christopher Duncan, vice president-finance, and chief risk officer for Delta Air Lines in Atlanta (see NU, March 18, page 6).

Equitime, he said, would provide $1.5-to-$2 billion in limits, with airlines retaining the first $300 million. The excess layer would be provided by the U.S. Federal Aviation Administration.