Daniel S. Labrie, chief executive officer of Housing Authority RRG, is the new board vice chairman. Terry E. Young, president of Selective Industrial Insurance Group Ltd., is the new secretary-treasurer.

"Very definitely, two items stand solidly on the radar screen at this time," Mr. Hamilton told National Underwriter regarding his concerns. "One is the Terrorism Risk Insurance Act. CICA wants to be on the forefront, giving its membership the opportunity to understand the Act, comply with the Act, and to the best of their ability be able to comfortably live with the Act."

Secondly, he continued, "especially in light of the developments of Kemper, fronting again becomes a very significant issue that must be faced by many of CICA's constituency."

Mr. Hamilton, who spoke to NU about Kemper before the CICA annual conference and prior to Kemper's recent announcement that it would cease most of its underwriting activities, noted that when Kemper's rating was downgraded below an "A," the action created problems for CICA members.

Many companies require at least "A"-rated paper, "whether it be to show financial responsibility or for certificates of insurance to be presented to their business partners," he said.

"While we appreciate the fact that Kemper is not insolvent," Mr. Hamilton said that the situation "does create the same sorts of difficulties that captives had when Reliance went through an insolvency," he said. "You have to replace the program and go through the motions of reestablishing relationships in all the areas that fronting applies to. And the market for fronting has reduced substantially over the past three years or so."

Over the past two months, Kemper has announced the sales of renewal rights to many of its businesses to A-rated carriers, including large risk accounts and captives businesses. Last week, Kemper said it would cease underwriting activities and sell renewal rights to its core middle-market and other businesses to a new company. Investors in the new company said they anticipate garnering an "A-minus" or better rating from A.M. Best.

CICA also announced that recently re-elected board members Daniel S. Labrie, chief executive officer of Housing Authority RRG, and Michael Mead, president of M.R. Mead & Company, LLC, will join two newly elected board members. The two new members are Les C. Boughner, the managing director of Citadel Group Representatives Inc., and Claude Parenteau, marketing director of SEB Asset Management America Inc.

New board members will serve a three-year term, CICA said.