French Insurer Defaults in Executive Life Suit

French insurer MAAF defaulted in a civil lawsuit in which it was accused of defrauding the state of California of billions of dollars in the purchase of Executive Life Insurance Co., spokesmen for both sides said.

Norman Williams, a spokesman for the California Department of Insurance, said the state planned to ask a jury to order MAAF to pay a share of $3.7 billion in damages claimed in the suit, which also targets the French government and French bank Credit Lyonnais.

Richard Ney, an attorney for MAAF, said the insurer voluntarily entered the default judgment because it had no U.S. assets and believed French courts would not enforce any damages levied against it by the U.S. District Court in Los Angeles.