INSURANCE

Lloyd’s U.S. Trust Fund Found Deficient: The New York State Insurance Department said Lloyd’s of London has a $7-billion net shortfall in trust funds that back up business written in the United States. Lloyd’s said it has the money, and it agreed to add $500 million to the funds immediately and to create two new funds by Aug. 1 that would fully back liabilities to U.S. policyholders. With the shortfall, Lloyd’s is in violation of New York’s regulations governing the activities of foreign insurers. Lloyd’s will be allowed to continue to write business in the United States because regulators in England assured officials that Lloyd’s is solvent and because Lloyd’s has agreed to recapitalize the funds.