INSURANCE

State Regulators Join Lloyd’s Settlement: The state Department of Corporations said it has entered into a settlement with Lloyd’s of London on behalf of investors who lost money as Lloyd’s underwriters, known as “names.” California is among 11 states that have sued Lloyd’s, alleging it broke securities laws and deceived U.S. residents into investing in the insurance market by becoming underwriters. “This agreement offers the best resolution for the many competing public and regulatory interests at stake in the proposed reorganization of Lloyd’s,” said Corporations Commissioner Keith Paul Bishop. Under the agreement, Lloyd’s would give up to $62 million in credits to reduce the insurance debts of U.S. names. That’s a reduction of about 23%. California accounts for about 500 of the insurance market’s 3,000 U.S. investors. The pact needs to be approved by states representing 80% of the U.S. names by today.