Business Notes Insurance

No industry has been battered as badly this year as insurance. The alarming jump in failures -- 17 in 1991 so far -- has enraged policyholders and angered Congress. But last week the industry had some good news for a change: a private insurance group announced a $1 billion plan that will guarantee the full value of virtually all 372,000 policyholders of Executive Life, the doomed California insurer that was seized by the state last April.

The agreement, largest of its kind to date, requires 2,200 insurers to provide the funds needed to restore the full value of policies and annuities held by customers of Executive Life, up to $100,000. About 95% of Executive's policyholders fall into that category. Those with policies valued above $100,000 will receive 81 cents on the dollar. In separate talks, California regulators are trying to persuade a French consortium interested in buying parts of Executive Life to come up with the remaining 19 cents. If the French agree, customers of the failed insurer would not lose a cent.