AIG Unit Off the Hook for New York Firearm Litigation Costs

A firearm company’s legal defense costs in lawsuits brought by the state of New York and two cities over its sales and marketing practices aren’t covered by its insurance policies, a federal court ruled.

The American International Group Inc. unit’s policy barred coverage for the underlying suits, which allege that Primary Arms LLC’s practices contributed to gun violence, Judge Lorna G. Schofield in the US District Court for the Southern District of New York wrote in an Aug. 30 order granting partial summary judgment to the insurer.

The allegations in the lawsuits don’t constitute an accidental “occurrence” that would be ...