A total of U.S.$99.9 million will be released for valid insurance claims and U.S.$174.8 million will be released for humanitarian purposes.

The agreement follows talks among the International Commission on Holocaust Era Insurance Claims, the German Foundation, Jewish organizations, insurance carriers and state regulators led by Illinois Insurance Director Nat Shapo.

"This agreement allows us to be true to the survivors and fully effectuate commitments made to them. It memorializes that commitment," said Mr. Shapo, secretary-treasurer of the National Association of Insurance Commissioners, Kansas City, Mo.

Other state insurance departments that worked on the agreement include: California, Florida, New York and Pennsylvania.

The agreement, which is expected to be signed and become effective in the next few weeks, reflects agreement on two points that had been contentious.

Those points include a decision not to charge companies administrative cost for administering claims to funds that would otherwise go to victims, Mr. Shapo said.

A second point, he added, is the creation of a strong administrative process to develop lists to make sure all potential claims can be investigated.

Names will be checked for variations in spelling and a new list of Jewish residents in Germany during the NAZI era will be compiled.

Also, the claims deadline, originally set for September 30, has been extended to March 31, 2003.

The agreement also includes provisions to monitor the claims process and the creation of a reserve if current funds prove inadequate.