Horace Mann, AIG Spar Over Sex Abuse Coverage

Law360, New York (March 6, 2014, 5:54 PM EST) -- American International Group Inc. on Thursday told a New York judge that it has no duty to defend Horace Mann School against sex abuse claims brought by former students following the publication of a New York Times article detailing years of misconduct, since the school refused to cooperate with the insurer.

An attorney for three AIG units, Mark D. Sheridan of Patton Boggs LLP, said that AIG's duty to indemnify Horace Mann against claims brought by two former Horace Mann students evaporated after the school placed onerous restrictions on the use of information obtained in mediation proceedings with the students.

"There is...

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