LA School District Wins Appeal Against AIG Unit for Abuse Claims

An American International Group Inc. unit may ultimately be on the hook to provide excess coverage for some claims alleging a teacher in Los Angeles sexually abused dozens of students, a California state appellate court said.

Insurance policies issued to the LA Unified School District were ambiguous about whether a covered occurrence meant the teacher’s abusive acts against each of the students or the school district’s single act of negligence in hiring and supervising him, the California Court of Appeal, Second Appellate District said in an unpublished ruling May 29.

The school district obtained primary insurance coverage that offered to ...