OTHER NEWS - May 21, 1993

Insurance Firm Seized in Alleged Fraud: State Insurance Department authorities said they seized Underwriters Reserve Ltd., a Laguna Beach insurer, and its affiliates, accusing them of selling more than 15,000 worthless auto insurance policies in Southern California and collecting $11.2 million in premiums in less than a year. Regulators shut down offices in Laguna Beach, Lakeside and Downey. The state also froze six bank accounts connected with the company, containing a total of $676,767. The department alleged that Underwriters Reserve, which claims to be based on the Caribbean island of St. Kitts, was actually operated illegally out of Laguna Beach by its Southern California owners, Robert M. Granafel, Russell W. Dennis and Jeffrey White.