Climate Change Insurance Question Sent to Hawaii High Court

Hawaii’s high court has been asked to consider whether greenhouse gases are traditional pollutants excluded by a Sunoco LP subsidiary’s liability insurance with American International Group Inc.

“Relative to other chemicals (e.g., lead), the lack of immediate harm from greenhouse gases may disqualify it as an ‘irritant or contaminant’” excluded by the insurance policy, Judge Jill Otake of the US District Court for the District of Hawaii said Tuesday, certifying the question to the state’s Supreme Court.

There isn’t enough precedent in Hawaii judicial decisions to address the issue, and the insurance question is governed by state law, the judge ...