Grapevine

By PAUL GRAY/

IF YOU CAN'T TRUST YOUR INSURER . . . There are ominous signs that the insurance industry may be facing a crisis that could rival the savings and loan debacle. Though insurers get income from premiums, most of their earnings come from investments, which have suffered major losses due to plunges in the real estate and junk-bond markets. Some are stuck with more than $1 billion in troubled mortgages, and the industry as a whole owns $60 billion worth of junk bonds. Compounding concerns is the fact that 1989 was one of the costliest years for accidents: tens of billions in claims are being processed after the Exxon oil spill, Hurricane Hugo and the San Francisco earthquake. Unlike savings institutions, insurance companies are not federally regulated or guaranteed. Some in Congress think it's time to intervene.

With reporting by DAVID ELLIS