INSURANCE: Big Policy

The Ford Motor Co., whose financial operations have always been clouded in secrecy, has long insured itself by setting aside a portion of its earnings to build up a fund against losses. Last week, Ford decided to buy its insurance on the outside. Through Chicago insurance brokers Marsh & McLennan, Inc., the company took out a policy with the Factory Insurance Association, an organization of 99 stock insurance companies. The policy, for $1.6 billion, is believed to be the biggest single block of insurance ever issued. Estimated premium: $1,600,000. Marsh & McLennan's probable cut as brokers: $320,000.

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