ADR Report-ADRs head lower as dollar strength weighs

* China Life rises after earnings

* Investors fret over European banks after ING split

* U.S. dollar reverses course, turns higher

* Bank of New York Mellon ADR index .BKADR falls 1.5 pct

NEW YORK, Oct 26 (Reuters) - Overseas shares traded in the United States fell on Monday as the U.S. dollar moved higher and news of a large rights issue and deep restructuring at Dutch insurer ING (ING.N) rattled investors.

Asian shares traded in the United States were cushioned as China Life Insurance Co (LFC.N) , the the world's top life insurer by market value, said third-quarter profits doubled, helping optimism in a corporate earnings recovery.

The Bank of New York Mellon index of leading American Depositary Receipts (ADRs) .BKADR fell 1.3 percent while the U.S. benchmark S&P 500 index .SPX fell 0.8 percent.

The dollar's sharp reversal against the euro weighed on ADRs, which are sensitive to the effects of currency movements on returns.

European ADRs were worst hit as the dollar rallied from 14-month lows against the euro. News ING would split the company and hold a 7.5 billion euro rights issue was seen as a precursor to restructuring at other banks that have had a government handout.

The news hit the U.S. listed shares in part-nationalized banks Lloyds Banking Group (LYG.N), and Royal Bank of Scotland (RBS.N), with Lloyds down 7 percent and RBS down 5 percent. ING's U.S.-listed shares lost 18.4 percent.

The Bank of New York Mellon index of leading European ADRs .BKEUR fell 3.4 percent. In Europe, the FTSEurofirst 300 .FTEU3 index of top shares ended 1.1 percent lower [.EU].

The American traded shares of China Life rose 0.8 percent it posted results and analysts said rising financial markets should sustain its long-term growth. For details, see [ID:nPEK296325]

The Bank of New York Mellon index of leading Asian ADRs .BKAS rose 0.2 percent. In Asia, shares rose, with Japan's Nikkei hitting a four-week closing high with investors there optimistic over corporate earnings. [.T]

U.S.-listed Latin American shares traded lower after being hit by the midday sell-off. Receipts with the Bank of New York Mellon index of leading Latin American ADRs .BKLA fell 1.3 percent. In Latin America, major benchmarks were lower. (Reporting by Edward Krudy; Editing by Neil Stempleman)