Washington--The American Insurance Association is negotiatingwith Marc Racicot, former governor of Montana and chairman of theRepublican National Committee during President Bush's first term,to be its new president, it was learned.

Mr. Racicot, 57, (whose name is pronounced Roscoe) is currentlya partner at Bracewell & Guiliani in Washington, D.C. The lawfirm has its roots in Houston.

One insurance industry lobbyist called the AIA's courting of Mr.Racicot "an astute move."

The lobbyist, who did not know of Mr. Racicot's potentialappointment, explained, "Mr. Racicot has strong ties amongst thestates, to the nation's governors, and certainly knows his wayaround Washington."

The AIA would not comment, although one source did go so far asto confirm that Mr. Racicot is the AIA's top candidate to succeedRobert Vagley, who announced last year that he wanted to stepdown.

But the sources made clear that Mr. Racicot has not yet signed acontract to head the trade group.

The position is one of the top lobbying posts in Washington,D.C. The job pays more than $1 million annually.

An aide to Mr. Racicot in Washington, D.C. said Mr. Racicot wasback home in Montana and could not be reached.

Mr. Racicot was chairman of President Bush's re-electioncampaign, and was formerly chairman of the Republican NationalCommittee in 2002. He was a prominent spokesman for the presidentduring the battle over the Florida election results in November andDecember 2000.

Mr. Racicot served as Montana's governor from 1993-2001. A 1973graduate of University of Montana Law School and an Army ROTCgraduate, he served in the military with the Judge AdvocateGeneral's Corps in West Germany acting as chief prosecutorthere.

While on Army duty, he also taught business and criminal law forthe University of Maryland. He was elected state attorney generalin 1989 after a stint as a state prosecutor. He was first electedgovernor in 1992.