Reinsurers Not Liable for Monsanto Pollution Settlement

NEW YORK - Reinsurers are not obligated to reimburse American Insurance Group for the 2004 settlement of pollution claims brought against Monsanto Co. because the payments were not made within the scope of the underlying policies and AIG failed to conduct a reasonable investigation as to coverage, a New York state judge has ruled. American Home Assurance Co., et al. v. American Re-Insurance Co., et al., No. 602485/06 (N.Y. Sup., N.Y. Cty.).

Judge Charles E. Ramos of the New York County Supreme Court determined that the settlement was designed to reimburse Monsanto for a potential punitive damage award and for …