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 SIMSBURY, Conn., June 14 /PRNewswire/ -- Hartford Life Insurance Co., a member of ITT Hartford Insurance Group, received approval from a California court to assume $600 million in life and annuity policies from Pacific Standard Insurance Co. Pacific Standard, based in Davis, Calif., has been in receivership since Dec. 11, 1989.
 The court's ruling, handed down by Calif. Superior Court Judge Stephen Mock, gives the official green light to a rehabilitation plan set forth by the Conn.-based insurer and the National Organization of Life and Health Guaranty Associations (NOLHGA), a national organization that assists state guaranty associations in handling multi-state insolvencies.
 "We are delighted with the court's speedy action regarding this plan," said Calif. Insurance Commissioner John Garamendi, who endorsed the ITT Hartford/NOLHGA plan. "The receivership period has been necessary to protect and preserve the assets of Pacific's policyholders, but it locked these individuals in a period of uncertainty. They have had no access to the life and annuity assets that are rightfully theirs. Approval of this plan is a significant step forward in re-establishing that access."
 Garamendi said the plan affects 83,000 Pacific Standard policyholders. After reviewing competing plans, Garamendi said he believes the ITT Hartford/NOLHGA plan offers these policyholders "the best opportunity to receive continued coverage and maximize their policies' value through a new policy issued by a highly respected insurance carrier."
 "We're pleased with the court action and Commissioner Garamendi's endorsement of the plan," said Lon A. Smith, president and chief operating officer of Hartford Life Insurance Company. "The past three- and-a-half years have been trying for Pacific Standard policyholders. Many of them have significant sums of money tied up in their policies. It will be particularly satisfying to once again allow them access to their account values, and offer them the protection of a strong, prudent insurer."
 This ruling marks the second time in nine months that Hartford Life has been approved to assume the business of a major insurance company placed in receivership. In Sept., 1992, Virginia State Insurance Commissioner Steven T. Foster approved Hartford Life's rehabilitation plan for Fidelity Bankers Life Insurance Co. of Richmond, Va. More than 120,000 life and annuity policyholders opted to participate in that plan, which will result in Hartford Life assuming $3.2 billion in assets later this month.
 At this time, the ITT Hartford/NOLHGA plan does not cover the 2 percent of Pacific Standard policyholders who own individual accident and health policies. "These types of policies are not part of Hartford Life's normal product line, and we feel these policyholders would be better served by another insurer specializing in these areas," said Thomas M. Marra, Hartford Life vice president and director, annuity operations. "We have urged the Calif. court to search for a more appropriate insurer to cover these policyholders' needs. However, if such an insurer cannot be found, we would consider a plan including these policies."
 Hartford Life is the 15th largest U.S. life insurer as measured by assets. ITT Hartford Insurance Group is one of the oldest and largest multi-line insurance organizations in the world with more than $49 billion in assets. It is owned by ITT Corp., a highly-diversified manufacturing and services organization, with worldwide assets of more than $59 billion.
 -0- 6/14/93
 /CONTACT: Gregory P. Potter, 203-843-8857 (office) or 203-653-6061 (home); or Joseph Fazzino 203-843-8180 (office) or 203-489-0055, both of ITT Hartford/

CO: Hartford Insurance Group ST: Connecticut IN: INS SU:

CM -- NE016 -- 1857 06/14/93 18:02 EDT
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Publication:PR Newswire
Date:Jun 14, 1993
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