AIG Unit Must Cover $6 Million Deal Against Investment Company

An American International Group Inc. insurance unit must pay for a combined $6 million judgment against a financial investment company under a directors and officers insurance policy, a Minnesota federal court ruled.

AIG Specialty Insurance Co.’s D&O policy covers claims and settlements between its policyholder, AOM Holdings LLC, and Mark Ploen and Richard Enrico, former executives of an advertising company, the US District Court for the District of Minnesota said Wednesday.

“The amounts sought by Ploen and Enrico fall within the initial portion of the definition of ‘Loss,’ as they are ‘settlements,’” said Judge Patrick J. Schiltz, referring to the ...