INSURANCE

Settlement Reached in Pacific Standard Suit: The California Department of Insurance said five former directors of Pacific Standard Life Insurance Co. have agreed to pay the company up to $11.6 million over the next four years for their roles in the near-collapse of the Davis-based life insurance and annuity company. The department seized Pacific Standard in 1989 after determining that it was insolvent, thanks in part to bad investments in second mortgages and junk bonds. All of its life insurance and annuity policies were purchased by ITT Hartford Insurance Co. earlier this year. The money paid by directors Gene E. Phillips, William S. Friedman, Clifford N. Gamble Jr., Timothy A. Menezes and D. Vinson Marley will be used to continue coverage for Pacific Standard’s 83,000 California policyholders.