Briefcase

Insurer paying to settle suits by cancer patients

A Nebraska company has agreed to pay $20 million to settle claims that it sold cancer insurance to people nationwide but paid only a fraction of the benefits when they got sick.

Central States Health and Life Co. of Omaha will pay $7.5 million to about 1,240 people who were denied coverage and $2.5 million to attorneys. The remainder will go into a fund to pay future medical expenses for the 1,400 people who filed claims or any of more than 18,000 other people who bought the policies but have not developed cancer.

The settlement was approved Tuesday by U.S. District Judge Karen E. Schreier in Sioux Falls, S.D., where one of the original complaints was filed.

Economy

Home construction hits 17-year high in October

Residential construction sizzled in October, reaching the highest level of activity seen in 17 years, a fresh sign that the housing market is helping to boost the economy’s recovery.

The Commerce Department reported Wednesday that builders broke ground on 1.96 million units, at a seasonally adjusted annual rate, representing a 2.9 percent increase from September’s pace.

The level of activity in October marked the strongest monthly performance since January 1986.

Economists were predicting residential construction would decline in October to a rate of around 1.85 million units.

Wall Street

NYSE members favor governance reforms

Final results of a vote on governance reforms at the New York Stock Exchange showed 98 percent of members approve of the changes proposed by interim chairman John Reed.

Of 1,136 valid proxies and ballots received, 1,112 seatholders favored installing a new, independent board to help minimize conflicts of interest, the NYSE said Wednesday. Federal regulators still must approve the measure.

Investigation

Charges may be dropped in WorldCom scandal

For the second time, an Oklahoma judge refused a prosecution request to delay a preliminary hearing set for Dec. 1 for former WorldCom Inc. chief executive Bernie Ebbers, charged with violating state securities laws.

Atty. Gen. Drew Edmondson said Judge James Paddleford’s ruling Wednesday might force him to dismiss the charges against Ebbers and refile them later in order to keep an agreement with federal prosecutors in New York who are investigating the WorldCom scandal.