Illinois state insurance regulators are ready to place sanctions on German insurer Allianz over Nazi-era life assurance payouts.

Last week, Illinois director of insurance Nat Shapo drew up a warrant in which Allianz is accused of failing to fund an international commission to settle claims over unpaid policies of Holocaust victims.

The warrant has not yet been formally issued.

Allianz staved this off with a round of negotiations with Illinois at the end of last week.

However, if Shapo does proceed with the warrant, it will pave the way for a range of sanctions to be placed on Allianz, including the loss of its licence to trade as an insurer in Illinois.

These moves are particularly significant as Shapo heads up the Holocaust taskforce of the National Association of Insurance Commissioners, so his moves set an example across the US.