OTHER NEWS - June 29, 1991

Mission Reinsurers to Pay $800 Million: A Los Angeles judged ruled that a group of reinsurers must pay $800 million to policyholders of Mission Insurance Co., which failed in 1985. The reinsurers, who essentially provide insurance for insurers, had alleged they should be excused from paying Mission’s claims because they had been improperly lured into taking on the business. But Superior Court Judge Kurt J. Lewin ruled that insurance companies can not rescind their coverage after claims are made. The bulk of the money is expected to go to state guarantee funds that compensated consumers for their losses.