Among them: establishing national standards that would apply to all state funds, sharing information among states about financially troubled insurers and creating a separate Federal system to handle insurance companies' insolvencies.

The money, approved last year by the state Legislature to help the financially troubled insurer, will be paid out over the year in rate rebates to individual and small-group policy holders.

Companies A $300 million lawsuit against Merrill Lynch was brought by Florida insurance regulators, charging that it arranged false trades with a troubled insurer.

The new directors of Ullico, the troubled union-owned insurer, voted to require directors who made more than $6 million trading company stock to return those profits within 30 days.

Trenton Tries Strong Steps State regulators have increasingly split over the best way to handle troubled insurers.

The troubled Los Angeles-based insurer was seized by California regulators last April amid a run by policyholders.

It is the largest seizure of an insurance company in state history and the first time the state has come to the rescue of a troubled insurer since 1974.

Title 39 also provides for the rehabilitation or liquidation of financially troubled insurers.

The effect could be particularly profound on Empire Blue Cross, Mr. Rivera said, a troubled insurer that has only recently stabilized its financial picture.

The American International Group, the troubled insurer, fell $1.59, or 3 percent, to $51.61.