Clarifications.

Information from the Corporate Changes section of the July 2005 magazine needs to be clarified as follows:

Potomac Insurance Company of Illinois changed its name to SUA Insurance Company on Nov. 23, subsequent to the company being acquired as a shell from Specialty Underwriters' Alliance Inc., which acquired the company as a shell from OneBeacon Insurance Co.

Two paragraphs were omitted between pages 65 and 66 in the article "On the Edge," June 2005. The paragraphs are as follows:

Surplus lines writers tend not to use credit-based insurance scoring, charging higher premiums to make up for the additional risk they carry. There's no state review of the rates or policies surplus lines carriers sell, so they are able to act quickly to adapt to the changing marketplace. "Nobody is going to question why you are charging X rate or X lee in most jurisdictions," [Bill] McCord [of Burns & Wilcox] said.

Also, unlike the standard market, most surplus lines policies break out the various costs of the policy to show what the premium is, the tee, and local tax. Most standard market policies have all of those costs wrapped into a single premium amount. And surplus lines writers and brokers get to keep their fee, even if the policy is canceled after it's issued.