Bermuda-based Stockton Re has advised brokers and ship owners of changes to its rating structure under their First Line programme of providing guaranties up to $400 million for OPA/CERCLA certificates of financial responsibility (COFRs).

The new rating structure takes effect December 28 for a programme that has established itself as the leader in the COFR guaranty market. Stockton Re had issued 1,636 guaranties to the US Coast Guard in respect of vessels totaling 48,236,552 gross tons, including 644 tankers, as of November 2.

First Line is discarding the combination of an annual premium plus a voyage fee, in favour of a premium based primarily on the number of voyages.

Stockton Re was aware of seven incidents, as of November 2, involving vessels with First Line guaranties.

Vice president and director of Stockton Re, Mr. Richard Black, said that two have generated claims on his firm and its reinsurers, ACE, XL and the Lloyd's market.

A relatively minor one, he said, is from the USCG involving an April incident in which a ship's P&I Club gave 15 days notice of termination, highlighting the potential risk to a guarantor who is required to give 30 days notice to the USCG.

The second involves a July incident, claiming in excess of $12 million and citing both OPA and State law.

Mr. Black said that the claims were "indicative of the uncertainty associated with the advent of OPA.'' He added, "What is certain is that, in support of the P&I Clubs' stance on the subject, neither claim will subject a P&I Club to "Direct Action'' in the US courts.

"What is also certain is that, in contrast to a mutual programme, neither of these claims, or even a claim for an amount in excess of a guaranty amount, can result in an additional, supplementary or release premium call in respect of vessels which have First Line guaranties.'' Discussions are continuing toward having First Line premiums included within Worldscale.