AIG Gets Third Win on Insurance Coverage for Ghost Gun Lawsuits

An American International Group Inc. unit is off the hook for a firearm retailer’s legal bills in underlying litigation brought by New York Attorney General Letitia James (D) and two city governments over its alleged sale of unfinished parts that can be used to assemble “ghost guns.”

Granite State Insurance Co. didn’t owe coverage for Rainier Arms LLC’s legal defense costs because the underlying suits against it alleged only deliberate conduct, so there was no covered accident or “occurrence” under the insurance policies, Judge Margaret M. Garnett of the US District Court for the Southern District of New York said ...