OTHER NEWS - Dec. 30, 1994

Executive Life Settlement Reached: The $36-million settlement of a lawsuit filed on behalf of policyholders of the Los Angeles-based insurance company was agreed upon by private law firms and the state Insurance Department, which filed the suit, and the officers, directors and outside auditors of the insurance concern, which were its target. The settlement was presented to Los Angeles County Superior Court Judge John Zebrowski, who scheduled a hearing on technical matters for today and could approve the deal then. The class-action suit filed in February, 1992, alleged that Executive Life Insurance Co. falsely advertised and promoted life insurance products and then speculated with the premiums. The settlement is the latest in the Executive Life case. Policyholders have already received nearly $60 million from a separate settlement of litigation by now-defunct Drexel Burnham Lambert and about $60 million as part of financier Michael Milken’s personal settlement of lawsuits. The Insurance Department estimates that 92% of all Executive Life policyholders have already gotten back 100 cents on the dollar, mostly through state guaranty funds.