Mr. Gausewitz, in Sacramento, Calif., made his comments in a teleconference briefing.

He forecast that privacy?online privacy and identity theft?would be a major issue in California.

Among the California measures he focused on is one requiring that companies, before sharing information with non-affiliated firms, secure their customer's permission or "opt in." It would also create a system for policyholders to "opt out" and request that information is not shared with affiliates.

The measure, (SB 1) sponsored by Sen. Jackie Speier, D-Hillsborough, modifies a privacy bill, which was introduced last year.

Also in California, he said, "There is a great deal of attention being placed on the homeowners market, which is tightening in the state." In particular, he said, are issues related to the use of credit history, underwriting homeowners insurance, and the use of claims history reports from the Comprehensive Loss Underwriting Exchange data bank.

A hearing to examine the financial privacy issue is scheduled for Jan. 15 by the California Senate Insurance Committee. The Assembly Insurance Committee also has scheduled a hearing for Jan. 15, Mr. Gausewitz said.

"We haven't yet seen Senate legislation on the use of CLUE reports, although there is one Assembly bill that will deal with that issue," he said.

Mark Sektnan, AIA assistant vice president, said that mold will continue to be a big issue in California. A legislative study begun about two years ago was supposed to be concluded this month with a seminar in Sacramento, Jan. 13-14. The conference has been postponed, however, until the study is completed, he said.

The AIA said it expects that legislation limiting an insurers' ability to exclude mold damage coverage from homeowners coverage will be introduced by Sen. Deborah Ortiz, D-Sacramento.

Workers' comp will be a continuing issue in the Golden State, Mr. Sektnan said.

AIA executives said the group is concerned that because of the budget crisis injured workers will face extended delays before receiving benefits.

Gov. Gray Davis has proposed that the employer community "step up from providing 20 percent of the funding of the division of workers' comp to providing 100 percent," he said. Employers, however, say that if they are going to "pitch in another $60 million they want to see the reforms in AB 749 implemented," Mr. Sektnan related.

When the Alaska legislature convenes Jan. 21, Mr. Sektnan said, it is expected that credit scoring will again be a big issue.

Mr. Sektnan said the AIA would continue to work with the department to implement an AIA-sponsored bill from two years ago to establish deregulation of the commercial lines market in Alaska.

He added, "We'll continue to monitor the privacy regulations, which have been circulated by the department but not yet adopted."

Mr. Sektnan said Nevada "has just about any insurance problem that one state could possibly have."

The Nevada legislature, during special session this past summer, adopted a bill placing some caps on medical malpractice awards as well as providing a method for judges to supercede the caps, he said.

However, "the Nevada Trial Lawyers Association has already said they will try to overturn that bill," he said. The Nevada legislature does not meet until February, he explained.

Another area of concern in Nevada, he said, is construction disputes. A task force has been appointed by the state's governor to examine the issue.

Mr. Sektnan said the AIA is on the task force, which hopes to get some proposal to the governor by Jan. 23 for a solution to Nevada's crisis in construction liability insurance.

He explained that "Construction is a very big issue in Nevada." Las Vegas, the fastest growing city in the country, is in "dire need of new homes, but the insurance market has almost dried up."

Mr. Sektnan said credit scoring is expected to be a big issue in Utah. House Bill 110 last year was passed that limits its application with auto insurance coverage. Representatives of the House have suggested they will come back with a bill to prohibit credit scoring for any line of insurance, both personal and commercial, he said.

The Utah Department of Insurance has been trying to develop a rule to implement the most recent credit scoring measure, but they have not yet done so, he reported. House representatives have asked the department not to because they want to introduce a bill, Mr. Sektnan said.