"We really haven't seen any significant increase [in requests about terrorism insurance] from our customers since the high alert status was posted," said Scott R. Isaacson, vice president and chief marketing officer for Chicago-based insurance broker Acordia, a subsidiary of Wells Fargo.

"I think the reason for that is that terrorism has been on the minds of all Americans since the attack of 9/11 and so this is not a new issue.

"Our customers are purchasing terrorism to protect their assets whenever it is economically feasible and so nothing has really changed," he noted.

"Because of all the notices and procedural things that have been going on because of TRIA [Terrorism Risk Insurance Act of 2002] the thought of terrorism has been moved up in the consciousness of clients for awhile," noted Gail Norstrom, managing director with the Chicago?based insurance broker Aon.

"Despite all the discussion about the Orange Alert, for many, it is not a question of if, but when, and how exposed they think they are," she said.

One thing that is confounding customers is the process being employed by carriers when it comes to the insurance placement, observed Elizabeth Demaret, managing director of international retail niche for insurance broker Arthur J. Gallagher headquartered in Itasca, Ill.

"We are now at the 90-day mark," noted Ms. Demaret, speaking about TRIA provisions that require insurers to offer coverage to those commercial accounts that want it within 90 days of the Nov. 26 effective date of the Act.

"When you look at our clients they are as confused as ever," she said.

"The Act is a simple solution for those who do not need it. It has not helped the large urban company that needs it," she said.

She said that clients whose coverage has been built using multiple carriers have been unable to plan for their insurance needs, because the TRIA proposals have come in at different times from the carriers. The proposals did not provide time for the customers to wait for all the other proposals to come in. They have had to make purchases not knowing what the other carriers would propose.

Those who do feel they need the coverage, and have not gotten the full picture of the TRIA proposals, have opted for standalone terrorism coverage instead, she added.

"TRIA has not been the solution," Ms. Demaret noted.

In Houma, La., one agent says he has advised his commercial clients that they should purchase terrorism coverage, but many have decided not to.

Robert P. Page, president and owner of Charles A. Page & Sons Insurance Agency, Inc., a mid-size property-casualty agency, says his clients could be prime targets for a terror event. He points out that most of them are in the middle of the petroleum and chemical industry, just 40 miles from the Gulf of Mexico. Despite his advice, most have turned down the coverage.

A major reason, he said, is that his clients do not want to add more to their insurance costs after receiving 60-to-90 percent increases on their premiums in the hard market.

Mr. Page, who is also the national director of the Professional Insurance Agents in Louisiana and chairman of the National PIA Federal Affairs Committee, also raises the issue of compensation for the work agents have done for carriers.

If companies count the TRIA increases as surcharges, agents do not receive compensation for the time and effort their offices have spent making sure the notices have been sent and either accepted or rejected.

"There is some issue about compensation back to the agent because of the added cost to the agency for following through on the federal mandate," Mr. Page said.

Mr. Norstrom predicted that "it will take until late spring before we get a good idea on how the terror market is developing and the complementary risk strategy."