Insurance California

A California administrative law judge Monday upheld a Department of Insurance cease-and-desist order against Radian Guaranty Inc. that prohibits the Philadelphia-based mortgage insurer from selling its Radian Lien Protection policies. The department issued the order in June because Radian is licensed to sell only mortgage guaranty insurance in California.

First Executive Corp. reported earnings for the quarter ended June 30 of $41.4 million, up from $31.9 million for the same period a year ago. Revenue rose to $896.6 million from $683.5 million. For the six months, the Los Angeles-based insurance holding company, parent of Executive Life Insurance, California's largest life insurer, said earnings totaled $78 million on revenue of $1.7 billion. That compares to net income of $57.8 million for the first half of 1985 on revenue of $1.5 billion.

The state Insurance Department on Friday banned five foreign-based insurance companies from doing business in California, calling them financially unstable. Banned are Promed International Ltd. of Tortola, British Virgin Islands; Economic Property & Casualty Insurance Co., Bahamas; Olympian Insurance Co., Antigua; Bergen Isle Insurance Co. Ltd., Marshall Islands, and California Pacific Bankers Insurance, Aruba.

Confused about federal and state payroll tax requirements? Clueless about how unemployment insurance works? California's Employment Development Department wants to help with free seminars for business owners. Between now and June, the department will hold a series of half-day workshops explaining the finer points of these employment tax systems in a couple of L.A. locations. For complete information, contact the department at (562) 904-1005 or (805) 677-2785.

Shareholders of Pac Rim Holding Corp. on Monday approved a previously announced deal that will pump $20 million into a wholly owned subsidiary that writes workers' compensation insurance in California. The cash infusion is being made by PRAC Ltd., an investment partnership controlled by Newport Beach investor Richard Pickup. In return, PRAC and Pickup will receive convertible debentures and warrants for common stock of Woodland Hills-based Pac Rim Holding Corp.

The State Compensation Insurance Fund, California's largest workers' compensation insurer, said it will return a $101-million dividend to businesses in California that were policyholders in 1998 with the nonprofit fund. The refund reflects savings achieved through improved workplace safety, the San Francisco-based fund said. The size of the actual payout to each of the fund's more than 200,000 customers will vary widely.

State Farm's policy-holders will not get state-proposed refunds of about 3.9% on their 1989 premiums for auto, homeowners and other property and casualty insurance. The California Supreme Court denied review Wednesday of lower-court rulings overturning the refunds, which had been ordered by state Insurance Commissioner Chuck Quackenbush. A lawyer for Quackenbush said the case sets a precedent that could endanger other refunds.