AIG Unit Meets Skeptical Ninth Cir. on Aggregate Limit Provision

A federal appeals panel grilled an American International Group Inc. unit on the meaning of a provision limiting total coverage available under umbrella policies issued to a California county.

The provision’s meaning was “anything but clear,” Judge Jay S. Bybee told AIG’s counsel during oral arguments Wednesday.

San Bernardino County is seeking coverage under umbrella liability policies for environmental remediation costs at the county-owned Chino Airport. Insurance Co. of the State of Pennsylvania doesn’t dispute that the policies afford coverage, but it argues that an aggregate limit provision in the policies caps total available coverage for the property damage claims ...