backing guarantees for First Line in the race to provide ships with sufficient insurance to trade in US waters under new pollution laws.

First Line, created by Johson & Higgins (Bermuda) Ltd. with the assistance of London-based Bancassure, an Aon Corp. unit, will provide financial guarantees to the US Coast Guard, Business Insurance reported earlier this week.

The Coast Guard will then issue ship owners covered by First Line with the certificates of financial responsibility (COFRs) required by law.

Tanker owners are racing to secure sufficient guarantees to continue to trade in United States territorial waters after the December 31 deadline.

A number of new vehicles, including First Line and Bermuda-based Shoreline Mutual, have sprung up to provide the cover after traditional ship insurers balked at the Coast Guard's high requirements.

Executives at Stockton Re and J&H could not be reached yesterday afternoon to comment on suggestion that the guarantees required by the US Coast Guard would be provided by the finite risk reinsurer, Stockton Re, but the company did say it was preparing a release.

First Line has not identified who will provide the guarantees their scheme requires, according to a recent story in Lloyd's List.

J&H has applied to the Coast Guard for approval of First Line.

A US congressional subcommittee was to meet with Coast Guard officials yesterday in an attempt to delay implementing new tanker insurance rules, Bloomberg Business News said.

So far the Coast Guard has issued COFRs for 632 vessels out of an estimated 4,500, tankers barges and other vessels that normally enter US waters.