BestWeek: Challenges to Sarbanes-Oxley Open on Multiple Fronts.

OLDWICK, N.J. -- Signs indicate support for the Sarbanes-Oxley Act is beginning to fracture, even as state insurance regulators and industry groups move closer to consensus on tougher internal standards for annual insurer audits, according to an exclusive story in the March 20 issue of BestWeek.

Passed in 2002 by overwhelming consensus, SOX has come under increased scrutiny for both its costs and its unintended consequences. New challenges to the law are mounting in Congress, in the courts and within the U.S. Securities and Exchange Commission as both of its authors--Rep. Michael Oxley, R-OH, and Sen. Paul Sarbanes, D-MD--prepare to retire this year.

For many, the most pressing issue is the burden the law places on small public companies. The SEC has voted twice to extend the compliance deadline for those with market capitalizations of less than $75 million to comply with Section 404 of Sarbanes-Oxley. This requires companies to attest to the soundness of their internal controls and have their external auditors do the same.

Also in the March 20 issue of BestWeek:

--What the long-term implications of the State Farm aftermarket crash parts case are;

--How reinsurers fared in the fourth quarter;

--Why recent regulatory and legislative actions suggest the industry faces more battles over risk selection; and

--Why the process of protecting valuable works of art from damage, degradation or theft is a collaborative effort involving risk managers and insurers, as well as conservators and the cultural institutions that employ them.

Also featured is Best's Insurance Composite Index, which finished the week of March 16, 2006, at 1,168.33, up 16.71% compared with a year ago. The composite index reflects the performance of 137 insurance stocks. The week's top performers were Citizens Financial; Presidential Life Corp.; James River Group Inc.; Safety Insurance; and CNA Financial. The week's bottom performers were Penn Treaty American Corp.; National Atlantic Holdings; National Interstate; Vesta Insurance Group; and Gainsco.

BestWeek is published by A.M. Best Co. for insurance professionals, including home office executives, agents and brokers.

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