Our industry is particularly vulnerable in the current economy. Some owners may believe that bonds are project costs that are not necessary. Federal decision-makers must understand that government must adhere strictly to statutory bond requirements; simply put, bonds are a necessity, not a luxury, for the preservation of precious taxpayer dollars and ultimately to preserve the nation’s investment in infrastructure projects! We need to continue our dialogue with federal policymakers to promote understanding of our industry and to protect the surety product.

To be effective, events like the Fly-in must be a regular event. The cost to our product and our industry will be too high if we fail to maintain a regular presence with our Congressional representatives. I share the concern expressed by Matthew K. Cashion, Jr. of The Cashion Company, Inc. in Little Rock, AR. Matt said, “…Larry [LeClair] accompanied me on the visit and made a huge difference in getting our message and specific issues communicated effectively. We need to do this every year as our product is very easily misunderstood and subject to political irrelevance.”

Events like the Fly-in are a rewarding experience that not only motivate us and remind us why we are in this business, but they give us information to take back and share with our clients.

Phil Forker of Anchor Insurance & Surety, Inc. in Portland, OR said, “After participating in the NASBP Capital Hill Fly-in, I am an advocate for proactively promoting the surety product. It’s time to shed the label of “surety the unseen service” by reaching out to educate the top leaders of our industry’s largest customer the Federal Government. This should be an annual event!”

Susan Hecker said, “The morning issue orientation briefing and speakers not only armed me with ways to communicate effectively that afternoon…it gave me new insight and information, which has subsequently benefited two of our customers. We gave something to our industry that day, but we also took back information, which will make us more valuable to the customers and carriers we represent.” “And on top of all of that, it was fun!,” stated Hecker.

Another reason to pursue advocacy efforts like the Fly–in is that the relationships NASBP members and affiliates form with their members of Congress establish important connections for the Association. These connections are bridges for the NASBP staff to continue educating these policymakers on the issues in NASBP’s Legislative Agenda and on surety issues of concern proposed in legislation throughout the year.

Lynn Schubert, President of the Surety & Fidelity Association of America (SFAA), stated, “Surety industry professionals meeting with their representatives on Capitol Hill are critical to the wellbeing of the surety industry. The NASBP Legislative Fly-in was a great example of how it can be done well. Between the underwriters in May and the producers in September, SFAA and NASBP have worked together to educate Congress on the value of surety bonds, and we are seeing the results already with better legislation.”

We must continue to be vigilant in increasing awareness of the surety product with our members of Congress. To do this, member and affiliate participation in events like the NASBP Fly-in is critical. I encourage you to consider attending the next Fly-in. If you are doubtful of its value to you, ask those who participated in the Fly-in if they believe it was worth their time. By participating, you will discover that you will receive something of great value to your business and your industry in return for a small amount of your time. To see more comments by other Fly-in participants, see Fly-in article in this issue by clicking here.

Todd P. Loehnert
President

Todd P. Loehnert is Senior Vice President, Bond Manager, and Co-chair of the National Surety Practice Group of Wells Fargo Insurance Services. Todd resides in Louisville, Kentucky and can be reached at Todd_Loehnert@wellsfargois.com

Receiving prime bonds in 100% of the contract price permits the owner in the event of default of the prime contractor, whether that default originates from actions by the prime or one of its subcontractors, to make claim on the performance bond up to the full amount of the contract price. Moreover, unpaid subcontractors and suppliers may pursue the surety on the payment bond up to the full amount of the contract price. In this fashion, the project owner is fully protected by the coverage of the performance and payment bonds, and, in terms of administrative convenience, need only seek redress from one surety.

Contrast that situation with the owner’s status as a dual obligee on the prime contractor’s subcontract performance and payment bonds where the owner has not required bonds of the prime contractor. In such situation, the subcontract bonds often only cover major trade subcontracts and, consequently, not the value of all subcontract work. In the event of the prime contractor’s default, the owner as dual obligee can only claim against a subcontract bond to the extent that a particular subcontractor is in default of its subcontract obligations to the prime contractor. Where the subcontractor has not defaulted, the owner will have no recourse against that subcontract bond. Thus, in the absence of performance and payment bonds furnished by the prime contractor, the owner will not have the security of bonds securing the prime contractor’s performance to the owner or payment to subcontractors and will shoulder the considerable burden of determining which, if any, subcontractors have defaulted in their obligations to the prime contractor so that the owner will have the right to make claims against individual subcontract bonds.

To the extent that multiple subcontractors have defaulted in their obligations to the prime contractor, the owner will shoulder the administrative burden of dealing with the claims processes of multiple and different surety companies, each of which may vary in the manner in which it addresses and processes claims against its subcontract bonds. Moreover, the delay and costs resulting from one subcontract default may far outweigh the penal amounts of the bonds for that subcontract. What happens when a subcontract default causes in turn a default by the prime contractor and other subcontractors have performed in accordance with their subcontract obligations?

Much more could be written on this subject, but the main import is clear: in the absence of prime contractor performance and payment bonds, dual obligee status for the project owner on subcontract bonds is, at best, a partial and limited risk management practice that offers an owner an imperfect and more burdensome avenue to address potential project problems. Given the current economic climate in which some may be tempted to “cut corners,” proactive efforts to educate project owners on this subject are warranted and prudent.

NASBP President Todd Loehnert said, “Since August, when Executive Vice President Dick Foss announced his plans to leave at the end of the year, the Executive Committee has been working diligently to ensure a smooth transition in leadership for the Association.As a result of those efforts, we are extremely pleased to announce that Mark has accepted the position of CEO. Mark has been serving as General Counsel and Director of Government Relations directing the government relations, industry relations, and legal matters for the Association since February 2006. The Executive Committee and I are confident that Mark will easily apply his competent leadership and management and multiple skills and talents to his new role with the Association.”

Mark H. McCallum Chief Executive Officer NASBP

Prior to coming to NASBP, McCallum was Senior Counsel & Executive Director of Programs and Industry Relations with the Associated General Contractors of America (AGC), headquartered in Arlington, Virginia. Among his responsibilities at AGC were directing the AGC Contract Documents Program, including the development of current AGC standard form document editions, providing analysis and assistance on regulatory and legislative matters impacting construction contracting and contractor liability, and overseeing industry liaison relationships.

Before going to AGC, McCallum served in the General Counsel’s Office of the American Institute of Architects (AIA) as Associate Counsel, Contract Documents, where, among other responsibilities, he was involved in the revision and development of many existing and past AIA standardized forms.

McCallum received his B.A. degree from Vanderbilt University in Nashville, Tennessee and his J.D. degree from Tulane Law School in New Orleans, Louisiana. He is a member of the Construction Law Section of the Virginia State Bar, a past Steering Committee Member of Division 2 (Contract Documents) of the Construction Industry Forum of the American Bar Association, a member of the Association of Corporate Counsel, and a member of the American Society of Association Executives.

“I also want to thank the Executive Committee, Dick Foss, and Mark, who worked together to quickly bring about this smooth transition in a short time-frame,” Loehnert added. “I believe that thanks to Dick’s tenure and Mark’s new leadership, NASBP will continue to expand its capabilities and ensure its recognition as the voice of surety bond professionals with government and industry.”

During the next few months, NASBP will continue to lobby for this bill and to seek additional co-sponsors. We will also rely on NASBP members to contact their Congressional Representatives and ask that they sign on as a co-sponsor(s) to H.R. 3771. If you have not already done so, please contact your member of Congress and ask they consider co-sponsoring H.R. 3771. NASBP has a sample letter on its Grassroots Action Center for you to access and send to your members of Congress. Click here, to take action now and ask your members of Congress to support H.R. 3771. The objective of H.R. 3771 is to place these businesses in a better position to qualify for financial and surety credit.

Participants at NASBP Fly-in Day in Washington, DC.

Fly-in Day Co-chair and NASBP President Todd Loehnert Fly-in Day Co-chair and Government Relations Committee Chair Tom Padilla Fly-in Day Instructions and Tips – NASBP staff, Mark McCallum and Larry LeClair, offer members and affiliates pointers for their visits with their members of Congress. Fly-in Day Speaker Congresswoman Yvette Clarke (D-NY) Fly-in Day Speaker Congressman Elijah Cummings (D-MD) Fly-in Day Speaker U.S. SBA Administrator Karen Mills

NASBP members and affiliates from across the country gathered in our nation’s capital to attend the NASBP Legislative Fly-in Day that resulted in more than 40 contacts with members of Congress.

NASBP Fly-in Day: A Worthwhile Experience In the Words of Those Who Attended.

Many participants viewed the Fly-in as a valuable opportunity and an enlightening experience to meet and to educate their members of Congress and their staff about the importance of the surety product and the surety industry.

Don Ardolino of J.D. Kutter Insurance Associates, Inc. in St. Louis, MO said, “I thoroughly enjoyed this event and thought it was of great value…first time I had done such lobbying beyond the state level. I only regret we could not achieve more Missouri participation. We feel that it is important to make our members of Congress more aware of suretyship and feel that this should be an annual event. Also, I felt that the NASBP staff had done a great job in preparing us well for our meetings.”

David Castillo of Alliant Insurance Services, Inc. in Las Vegas, NV said, “So many times we talk about getting involved in the political process, making a true difference in our industry. Being a member of our unique industry, it takes more than words—it takes action. I was privileged to be a part of the NASBP Legislative Fly-In. Not only was it an invaluable experience for me, but a chance to educate our representatives on our current obstacles and solutions. I encourage all of you to take the next step and be a part of our next Fly-In. It’s beneficial for everyone involved.”

Paul J. Ciambriello of Guignard Company in Longwood, FL said, “Our NASBP Fly-in was a very valuable co-operative opportunity between NASBP members and affiliates to visit with members of Congress and their staff toward educating them about the importance of the surety product while advancing the surety initiatives, which are planned and/or being introduced into legislation.”

NASBP Third Vice President Carl Edward Dohn, Jr. of Dohn & Associates in Palatine, IL said, “The prospect of going to Washington D.C. to visit with the representatives from our Congressional districts was at first daunting. But, with the help and directions from Kathy Hoffman, Larry LeClair and Mark McCallum it became a simple matter of following steps to get an appointment. U.S. Senators and Representatives are busy people, but they or their staff find time to meet, listen, and show appreciation for your concerns. I think [members of Congress] really want input from their constituents.”

NASBP First Vice President J. Spencer Miller of Schwartz Brothers Insurance Agency, in Chicago, IL, said, “During the Fly-in, I was even able to meet with an official at the Department of Veterans Affairs. This meeting turned out to be highly successful, as we learned about the construction program for the VA, including that the VA has received $5 billion in allocated funds for construction that is currently underway. This information was valuable intelligence to me and to my clients. I definitely would participate in the Fly-in next year.”

John Suarez of Westfield Insurance in Tampa, FL said, “I was very pleased with the overall outcome. All of the visits went well and were well-received by all of the legislative offices. The people we spoke with knew something about at least one of the [NASBP Hill Visit] talking points. Frankly, I think one of the most beneficial things to come of this meeting was the chance to speak about our business and product, as most do not even know we exist.”

Don Zalk of CCI Surety, Inc. in Golden Valley, MN said, “Thank you for all your efforts putting the day together! We really enjoyed the experience, and hopefully helped further our cause.”

Already Planning Their Next Visit!

These participants said that they would participate again. Some are already planning what they will do for the next one.

Thomas Durkin of Durkin & DeVries Insurance Agency in Burlington, MA said, “Everything we did was educational. We need to do more of this. Hearing our voice once every 15 years will accomplish nothing. The briefing Larry and Mark provided was very helpful.”

Joshua A. Etemadi of Construction Bonds, Inc. in Fairfax, VA said, “I grew up in a fairly cynical family when it came to politics, so going to lobby on behalf of surety bonds seemed like a lost cause. However, after I met with the legislative aides, I felt like they really took in what we had to say about the importance of surety bonds, and that was very re-assuring. There is absolutely no doubt that I will continue my communication with leaders of both the House and Senate, and I look forward to being an integral part of drafting and passing legislation as surety comes into the question.”

John Hughes of Construction Bonds, Inc. in Fairfax, VA said, “While it took persistence to get on their schedules, I was impressed with the attention and interest we received from both the representatives’ and senators’ offices. They seemed to be genuinely interested in trying to understand both the prequalification aspect of bonding and the efforts NASBP is making to extend bonding to small businesses and [service-disabled veteran-owned small businesses]. Each office invited us to let them know if we feel a particular piece of legislation needs their attention. I plan to do this type of outreach again.”

Chad Martin of TIS Insurance Services Inc. in Knoxville TN said, “The NASBP did a wonderful job orchestrating the Capitol Hill Fly-In. This was my first experience to participate in the democratic process of meeting with my senators and representatives. I found the trip to extremely educational and informative. My senators were delighted to take the time and visit with me. They had a genuine interest in learning about the issues and problems that face the NASBP. My representative sat down with me for 45 minutes, discussing the issues that are pertinent to the construction industry and specifically the surety industry. This was a great event that I enjoyed thoroughly and would attend again in the future.”

Michael J. Petrasek, Sr. of Seubert & Associates, Inc. in Pittsburgh, PA said, “I enjoyed the Capitol Hill experience and would gladly seek to do more of it in the future.”

Summary of the NASBP Fly-in Day Events

To summarize the day’s events, the morning of September 22nd began with an issue orientation and policy briefing program where Co-chairs NASBP President Todd Loehnert and Government Relations Committee Chair Tom Padilla welcomed a crowd of over 70.

The NASBP General Counsel Mark McCallum and Assistant Director of Federal and State Relations Larry LeClair reviewed the handouts and tips that NASBP provided for members and affiliates for visits that afternoon with their members of Congress. The majority of the program included presentations from key federal policy makers who included Congressman Elijah Cummings (D-MD), Congresswoman Yvette Clarke (D-NY), and the U.S. Small Business Administrator (SBA), Karen Mills.

Congressman Cummings spoke about his legislation, H.R. 2991, the “Department of Transportation Bonding Assistance Authority Act of 2009,” which establishes a bonding assistance program through the U.S. Department of Transportation, and his continued support to repeal the 3% tax withholding on payments to government contractors.

Congresswoman Clarke shared her concerns about the continued legislative efforts to prohibit the practice of contract bundling and its impact on small business owners. Clarke expressed her support for legislation that would provide mentoring and grant assistance to minority, women-owned, and veteran-owned small construction firms, so that they may receive the resources and guidance needed to qualify for financial and surety credit.

SBA Administrator Karen Mills emphasized the Obama Administration’s commitment to small business. The reforms to the SBA Surety Bond Guarantee Program, resulting from the passage of the American Recovery and Reinvestment Act, provided a valuable service to small and emerging contractors who otherwise may not qualify for surety credit, Mills said. Mills believes that the recent commitment made by the Obama Administration will ensure that the Bond Guarantee Program will continue to remain a vibrant Program for those small and emerging contractors striving to expand their businesses.

Anyone who was unable to attend the NASBP Legislative Fly-In Day will have another opportunity again. NASBP will keep Pipeline readers apprised of details of NASBP’s next Fly-in Day.

• Level I – January 24 – 27, 2010
• Lever II – January 24 – 29, 2010

For in-depth information about the School and to register today, click here.

Here are upcoming presentations that will help you prepare for 2010.

NASBP November 10 Virtual Seminar: “Strategic Planning in a Volatile Business Environment” – Scott MacDonald presents a practical checklist of essential and timely actions to take to ensure optimizing your success in the coming year, regardless of external economic forces and business gyrations.Scott MacDonald, Ph.D. is president and CEO, SW Graduate School of Banking (SWGSB) Foundation, Director of the Assemblies for Bank Directors, and Adjunct Professor of Finance, Cox School of Business, Southern Methodist University.

Scott MacDonald

NASBP is already building its schedule of Virtual Seminars for next year. Don’t hesitate to share your ideas for a speaker, a topic that you believe your staff would benefit from, an issue that you would like more in-depth information on, or an emerging trend that you believe the membership would benefit from learning more about.

Share your ideas for topics or speakers for the 2010 NASBP Virtual Seminars with Cathrine Nelson by contacting her at 202.686.3700 or cnelson@nasbp.org.

Edward B. Gentilcore, Esq. a Partner with Duane Morris LLP and Steven M. Charney, Esq. a Partner with Peckar & Abramson PC will present this 90 minute seminar. Carrie L. Ciliberto, Esq., ConsensusDOCS™ Director of Contracts & Construction Law, will moderate.

To register, click here to access the registration form to fax payment to: 703-837-5406 or to e-mail to: mmcgarvey@ConsensusDOCS.org.

To Purchase ConsensusDOCS Documents at NASBP Member/Affiliate Discount

NASBP members and affiliates can receive up to 20% off their purchases of ConsensusDOCS forms if they insert the Partner Code, NASBP, and the Promotion Code, 400, when prompted during the purchase process from the ConsensusDOCS site, http://www.ConsensusDOCS.org.

For more information about ConsensusDOCS and NASBP’s participation as an endorsing member, click here.

NASBP is an endorsing organization of the ConsensusDOCS coalition, an unprecedented effort by more than 20 other industry organizations to identify industry best practices and to incorporate such practices in a new generation of consensus industry standard form documents.

In addition, Michael A. Marra, a Vice President of the Construction Division of AAA, identified the following changes as particularly noteworthy.

R-1: The Construction Rules may be applied to construction disputes arising from contracts, which contain arbitration agreements naming the AAA without specifying the Construction Rules.

R-7: AAA created a subset of AAA’s construction panel of arbitrators familiar with consolidation and joinder disputes and absent party agreement otherwise, only arbitrators from the R-7 panel will hear disputes governed by this Rule. Additionally, the Rules now provides for the R-7 arbitrator to decide the process for arbitrator selection for a consolidated case.

R-14 (e): In cases requiring a three-arbitrator panel, if the parties are unable to agree upon the professional composition of the panel, the AAA shall make the determination.

R-19: The Disclosure section is amended to require that parties and their representatives disclose any circumstance likely to give rise to justifiable doubt as to the arbitrator’s impartiality or independence.

R-56: The Remedies for Nonpayment section is expanded to allow the arbitrator to consider more solutions, in addition to suspension and termination, when one or more party has not paid its administrative fees and arbitrator compensation.

Marra added that the revised Fast Track Procedures include several updates to expedite the arbitration process for the smaller claims and a new section, titled, “Procedures for the Resolution of Disputes Through Document Submission,” provides parties with another option for expedited resolution process, regardless of claim size.

The process for reviewing and revising these rules was inclusive and occurred over several years. John C. Emmert, Jr., Senior Vice President of the Construction Division of AAA, explained that the AAA received valuable comments, advice and guidance from many, including the advisory body to the AAA concerning construction dispute resolution services, the National Construction Dispute Resolution Committee (NCDRC). NASBP is a member of the NCDRC.

Emmert said that others who provided guidance were AAA’s construction division’s executives, staff and Board members, as well as AAA customers and neutrals, both individually and as part of several focus group discussions.

To access the complete revised rules, click here and to access a summary of the changes, click here.

Since 2006, NASBP’s General Counsel has served as an NASBP representative on the NCDRC, seeking to ensure that AAA administered dispute resolution processes focus on the needs of the construction community and remain expedient and cost-effective.

NASBP continues its support of AAA’s efforts and has agreed to sponsor the Nov. 13, AAA Conference on construction alternative dispute resolution being held in Los Angeles. For more information about the conference, click here.

The next NCDRC Annual Meeting will be December 3, in Washington D.C.

Replacing the words “resident agent” with “registered agent” on the form makes clear that nonresident and resident licensed agents may sign the bond form, and motor vehicle dealers will not be unnecessarily delayed in their ability to conduct business due to misguided rejection of bonds not bearing “resident agent” signatures.

James Schabarum of Cavignac & Associates moderated the Regions 1,2 and 3 presentation held in Coeur D’Alene, ID and delivered by Kevin Kutina of Kevcon, Inc.; Timothy A. Mikolajewski of Liberty Mutual Surety; and Stephen L. Reed of Smith, Currie & Hancock LLP.

David R. Summerall of Early, Casssidy of Schilling moderated the Regions 8,9,10 and 11 panel that included Alberto Omeechevarria of Biscayne Contractors; Steve Reed (presenting a second time); and Mark C. Vonnahme of Arch Insurance Group, Inc.

Some of the federal contracting materials distributed at these meetings included:

• A brief summary of federal contracting opportunities (September 2009) written by Steven L. Reed, Esq. of Smith, Currie and Hancock;
• Commonly used federal acronyms (not an exclusive list);
• Titles of federal contracting printed guides (includes links to on-line stores selling these publications) and;
• Web sites of government agencies, government-affiliated organizations, and others involved with federal contracting.

To access these materials, visit the resource’s page of the Risk Management & Insurance Committee, by clicking here.

As a reminder, another resource is the new ConsensusDOCS 725, Federal Subcontract, recently published and discussed in the May/June issue of Pipeline.

Holmes Murphy & Associates, Inc
http://www.holmesmurphy.com
Dallas, TX
Key Contact: Mistie Beck

Insurance & Benefits Group
http://www.IBGagent.com
Lee’s Summit, MO
Key Contact: Sam Bowlby

Snapper Shuler Kenner Insurance LLC
http://www.sskinsurance.com
Lynden, WA
Key Contact: Daun Botta Pillo

Team Insurance Services, Inc.
erivera@teaminsurancepr.com
San Juan, PR
Key Contact: Elpidio Rivera-Sosa

Jim received multiple accolades and contributed to many publications. For example, in 2007, he was awarded “Power Broker” for the Construction/Design category of the “Risk and Insurance Report,” which is an annual listing of the most influential commercial insurance brokers in 27 industry practice groups. Also, Jim co-authored the construction industry guide published by McGraw-Hill and titled, “Construction Insurance, Bonding and Risk Management.”

Paul Becker, Construction Practice Leader for Willis North America and President of the Construction Division of Willis Americas wrote, “A list of people that can point to a positive influence Jim had on their lives would fill many pages. Few individuals in our industry have earned the affection and respect from clients, colleagues, and peers as Jim did during his career. He will be remembered for working tirelessly and selflessly to help clients and teammates while maintaining the highest level of integrity in everything he did. Jim’s efforts were not limited to the surety and insurance industries. His work for the church, in the community, and on behalf of the construction industry will leave a lasting legacy.”

Donald J. Bailey, Chairman and Chief Executive Officer of Willis North America, spoke for many in saying, “Jim was a special man. He cared about Willis, his fellow associates and our clients unlike anybody that has ever worked in this industry. Willis is a better place for having Jim Maloney here.”

His funeral was held October 19, at St. Joseph Catholic Church in Columbia, South Carolina.

Jim is survived by his wife, Claudia; daughters and sons-in-law, Kelley and Randy Liggitt of Columbia, Melanie and Ken Fulton of Charleston; son and daughter-in-law, Matt and Laurie Maloney of Greenville, N.C.; grandchildren, Kent and Kate Liggitt; stepsons, Scott Harmon and his wife, Leslie, and their children, Emily Grace, Luke and Olivia, of Little Mountain, Mark Harmon of Travelers Rest.

The family has asked that memorials be made in Jim’s name to organizations where he spent a lot of his time. He was the Chairman of the Board of Providence Hospital two times as well as active in St. Joseph’s and Precious Blood of Christ Catholic Churches.

Providence Hospital
2435 Forest Drive
Columbia, SC 29204

St. Joseph’s Catholic Church
3700 Devine Street
Columbia, SC 29205

Precious Blood of Christ Catholic Church
1633 Waverly Road
Pawley’s Island, SC 29585

To send condolences to the family, visit the online guestbook at www.dunbarfunerals.com.

Howard M. Cantwell

NASBP was saddened to learn of the passing on September 30th of NASBP activist Howard M. Cantwell, III, 61, of Swantner & Gordon Insurance Agency of Corpus Christi, Texas.

Howard had 35 years of experience in the bond industry. He began his bond career in 1973 with Continental Insurance’s Regional Surety office in Dallas and subsequently was promoted to manager of its New Orleans office. Howard also served in various management positions at CNA before being promoted in 2003 to assistant vice president with responsibility for ten offices—covering the entire southeast region of the USA. He retired from CNA after seventeen years of service at the end of 2007.

Then, in 2008, Howard went to work as Bond Manager for Swantner & Gordon Insurance Agency in the Houston and Corpus Christi areas.

Larry E. Schmidt of CNA Surety in Houston, Texas said, “Howard was well known and well respected in the surety industry in Texas and Louisiana, and had many surety friends all over the country.” “Anyone who knew him will tell you that he was the consummate southern gentleman, with a battery of sayings that made one take a double-take most of the time and a sense of humor that was about as dry as south Texas,” Schmidt related. “He was definitely one of a kind, and will be greatly missed by many whose lives and careers he influenced.”

Howard is survived by his wife, Ann; former wife, Judy; his son Howard IV and his wife Vanessa of Dallas, TX; his two brothers, Kimberly Hart Cantwell and his wife Cindy of New Orleans, LA, and Wesley Allan Cantwell of Katy, TX; and his stepson, Alfred McArthur Faulkner and his wife Jennifer of Pleasant Ridge, MI.

A memorial celebration of his life was held October 10 in Sugar Land, Texas. In lieu of flowers, memorials may be made to the Houston Hospice at www.houstonhospice.org or to the American Cancer Society.

• Excelsior Insurance Company (NAIC# 11045)
• Peerless Indemnity Insurance Company (NAIC# 18333)
• Consolidated Insurance Company (NAIC# 22640)
• Indiana Insurance Company (NAIC# 22659)
• The Netherlands Insurance Company (NAIC# 24171)
• The Midwestern Indemnity Company (NAIC# 23515) under 31 U.S.C. 9305 to qualify as an acceptable surety on Federal bonds has been terminated effective October 9, 2009.

2. A change in underwriting limitation for Employers Insurance Company of Wausau (NAIC# 21458), effective October 15, 2009. The underwriting limitation has been increased and the new limitation is $75,367,000.

3. A change in underwriting limitation for Liberty Mutual Fire Insurance Company (NAIC# 23035), effective October 15, 2009. The underwriting limitation has been increased and the new limitation is $82,527,000.

4. A change in underwriting limitation for Liberty Mutual Insurance Company (NAIC# 23043), effective October 15, 2009. The underwriting limitation has been increased and the new limitation is $663,431,000.

5. A change in underwriting limitation for Peerless Insurance Company (NAIC# 24198), effective October 15, 2009. The underwriting limitation has been increased and the new limitation is $193,624,000.

For a complete listing of all states where these companies are licensed to transact surety business, please refer to the Circular 570 and its supplements at:

http://fms.treas.gov/c570/c570.html
http://fms.treas.gov/c570/supplements.html