3rd Circ. Says AIG Unit Doesn't Owe Hospital Group Coverage

Law360, New York (February 29, 2012, 7:15 PM EST) -- The Third Circuit on Wednesday affirmed a lower court's ruling that an American International Group Inc. subsidiary was not obligated to cover defense costs for Atlantic Health System Inc. in an underlying antitrust suit filed by an ambulance company.

AHS claims it was entitled to defense and indemnification for Med Alert Ambulance Inc.'s antitrust suit under its 2003-2004 National Union Fire Insurance Co. of Pittsburgh, Pa., policy because it mentioned the suit in insurance renewal applications sent to a National Union underwriter during the policy period....
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