OTHER NEWS - March 28, 1996

British Insurer Seeks Suit Dismissal: Lloyd’s of London asked a Los Angeles court to dismiss a California Department of Corporations suit alleging the insurer sold risky securities to local investors. The suit, filed last month, also seeks to freeze all of Lloyd’s U.S. assets. The Department of Corporations has alleged that Lloyd’s engaged in fraudulent sales of risky securities in an attempt to draw more investors into the market to cover asbestos liabilities. In its motion, Lloyd’s said that if the state’s lawsuit is not dismissed, “thousands of California policyholders that rely on Lloyd’s for insurance or reinsurance could find themselves without coverage.” Lloyd’s also said the lawsuit has prevented the insurer from corresponding with California member underwriters to offer a $4.5-billion plan of “reconstruction and renewal” to help make up for extraordinary losses in 1988-92.