INSURANCE BRIEFS

INSURANCE BRIEFS

PRUDENTIAL SECURITIES

SETTLES CHARGES

WASHINGTON - Prudential Securities Inc. agreed to pay $371 million to settle federal and state charges of using improper sales tactics to peddle

investments known as limited partnerships during the 1980s Wall Street boom.

The firm, a Wall Street giant owned by Prudential Insurance Co. of America in Newark, N.J., is accused of selling 700 separate, high-risk limited partnerships in 49 states to customers who sought safe investments for their savings. The action was the second-largest settlement with regulators paid by a securities firm since the now-defunct, junk-bond powerhouse Drexel Burnham Lambert Inc. agreed to pay $650 million in 1989.

Last Thursday, Prudential - without admitting or denying wrongdoing - agreed to set up a $330 million fund to compensate investors. Prudential also agreed to pay $10 million in fines to the Securities and Exchange

Commission, $26 million to the states and $5 million to the National Association of Securities Dealers.

LIGA GETS $12 MILLION

FROM CARRIER LIQUIDATION

BATON ROUGE, La. - The Louisiana Insurance Guaranty Association is receiving $12 million from the liquidation of failed carriers, the Insurance Department said last week.

The largest sum, $6 million, is from ANA Insurance Group, which was placed into liquidation May 17.

COMPLAINT RATINGS

ANGER CALIF. INSURERS

LOS ANGELES - Insurance companies blasted the annual consumer complaint ranking list released by California Insurance Commissioner John Garamendi late last week.

California's survey of what it calls the "Good, the Bad and the Ugly" detailed the ratio of homeowners, auto and life insurance policies to justified complaints telephoned into the California Insurance Department for the 50 largest companies in several categories.

The No. 1 car insurance company was United Services Auto Association, San Antonio, Texas, the same company that had the top-ranked homeowners insurance policy. No. 2 was State Farm Mutual Automobile, Bloomington, Ill. Northbrook, Ill.-based Allstate Indemnity was third.