Prudential Insurance has paid $10.5 million--its largest...

Prudential Insurance has paid $10.5 million--its largest death benefit ever--on a policy insuring North America Savings & Loan Assn. owner Duayne D. Christensen, who was killed in a car crash Jan. 16 just hours before S&L; regulators seized his troubled institution. The payment, however, is being withheld from the policy’s sole beneficiary, Janet F. McKinzie, Christensen’s business manager and confidante. Prudential placed the money in custody of the U.S. District Court in Los Angeles, which has frozen all assets owned by Christensen’s estate and by McKinzie. The Federal Savings and Loan Insurance Corp., as receiver for the Santa Ana S&L;, has sued McKinzie on claims that she aided Christensen in defrauding North America out of more than $40 million.