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Quote of the Day - Fools and obstinate men make lawyers rich. - Proverb
Reinsurer Ordered To Pay AIG Insurance For Environmental / Toxic Tort Claims
Back in 1973, insurance coverage for environmental claims was a given. Policies issued to businesses covered exactly those types of claims. As most know, insurance companies further spread the risks they insured to other insurance companies, a process called reinsurance.
When AIG paid environmental claims back in 1973, they submitted the bills to their reinsurers, Argonaut Insurance. Argonaut didn't, however, pay the claims back to AIG.
As a side note, it's a bit comforting to know that even big insurance companies can't get their insurance claims paid.
So, just like the rest of us when our insurance doesn't pay a claim, AIG took Argonaut to court. AIG just got it's verdict upheld: Argonaut must now pay about $7 million for previously unpaid claims.
That's the price of obstinance.