AIG Insurance $55M Abuse Settlement Suit Targets Reinsurers
America Δ± By Rihem Akkouche
0 Comments
A captive insurer for the Seventh-day Adventist Church has launched a high-stakes legal battle in Vermont federal court, alleging that two reinsurers failed to reimburse more than $55 million tied to abuse claims at a now-shuttered boarding school.
The lawsuit β the AIG insurance $55M Abuse Settlement suit β accuses AIG unit Lexington Insurance Co. and Swiss Re subsidiary Westport Insurance Corp. of refusing to honor facultative reinsurance agreements covering massive defense costs and settlements.
A Dispute Over $55.4 Million
In a complaint filed Tuesday, Gencon Insurance Co. of Vermont said the reinsurers declined to indemnify approximately $55.4 million in combined defense expenses and settlement payments.
Gencon contends Lexington is responsible for about $36.4 million, while Westport allegedly owes $19 million. The captive insurer argues the contracts required the reinsurers to βfollow the settlementsβ it entered into.
βThe reinsurance contracts obligate the reinsurers to follow the settlements entered into by Gencon,β the company said in its complaint, adding that it reasonably allocated the amounts it paid and that industry custom allows such allocation discretion.
Lexington and Westport have argued the underlying claims are not covered or have disputed how Gencon allocated the losses, according to the filing.
Insurance Layers and Reinsurance Agreements
Since 1987, Gencon has insured church-affiliated organizations under primary and excess general liability policies. Beginning in 1995, it transferred second-layer excess risks to reinsurers.
Westport provided coverage from 1999 to 2005, while Lexington did so from 2005 to 2011, the complaint states.
The financial clash now unfolding centers on whether those reinsurers must reimburse Gencon for settlements tied to allegations of abuse at Miracle Meadows School in West Virginia.
The Miracle Meadows Allegations
Miracle Meadows, founded in 1988 by Gayle Clark, was owned by a church member but was not owned or sanctioned by the church itself, the complaint says.
In 2014, West Virginia state police raided and shut down the school following investigations by the state Department of Health and Human Resources and a studentβs attempted suicide. Clark and other staff members were arrested.
Three years later, 27 former students filed individual lawsuits alleging that from 1999 to 2014 they endured deplorable living conditions, physical and mental abuse, false imprisonment, and educational, medical and nutritional neglect. Many also alleged sexual misconduct.
Gencon said its claims administrator, Adventist Risk Management Inc. (ARM), determined the physical abuse allegations triggered a duty to defend under the general liability policies and that no exclusions barred coverage.
In 2020, ARM settled those initial 27 cases for $19 million.
Additional claims followed. According to Gencon, settlements for later cases ranged from $450,000 to $650,000. To date, ARM has resolved claims brought by 177 former students, paying nearly $86.7 million in settlements and incurring more than $2 million in defense costs.
Discussion
No comments yet. Be the first to join the discussion!
FOLLOW US
Recent Posts
New York Chaos Erupts After Knicks Win NBA Championship After…
At least 1 dead, 10 injured in Texas shooting; suspect…
Tren The Aragua Reportedly Killed: Kinetic Diplomacy and the Death…
The Single Developer Revolution: How AI Models Are Disrupting Traditional…
βManipulated’ Tyra Banks Sues Netflix
US Crushes Paraguay 4-1 in Opener
U.S. Forces Anthropic Shutdown
Donβt Miss It
Behind The Walls A Public Figure Confronts Private Reality
By β Tyler BrooksThe Reckoning Of An Industry Icon As Taylor Swift Claims Her Throne In The Songwriters Hall Of Fame
By β Tyler BrooksBill Ritter Steps Down from ABC7 Eyewitness News Anchor Chair Following Alzheimer Diagnosis
By β Tyler BrooksFederal Ruling Shifts Legal Landscape in High Profile Hollywood Dispute Between Blake Lively and Justin Baldoni
By β Tyler BrooksElon Musk Triggers The Two Trillion Dollar Reckoning As SpaceX Market Entry Shakes The Foundation Of Global Finance
By β Tyler BrooksShrinking Global Pipeline Threatens Financial Stability and Academic Diversity at American Law Schools
By β Tyler BrooksPentagon Declassifies Intelligence Files Detailing Sustained Unidentified Anomalous Phenomena Sightings Across the Northeast United States
By β Tyler BrooksCommerce Department Order Forces Anthropic to Suspend Advanced AI Models Amid National Security Concerns
By β Tyler Brooks
Kelly Warner Law Firm Blames USA…
In what appears as a desperate attempt to defend multiple…
By β USA Herald
Aaron Kelly Law Firm Resorts To…
Attorney Aaron Kelly and his law partner Daniel Warner are…
By β Jeff Watterson
Arizona Bar Opens Investigation on Attorney…
USA Herald recently reported on a developing story involving Attorneys…
By β Paul O'Neal
New York Knicks End 53-Year Championship…
The New York Knicks have finally climbed back to the…
By β Jackie Allen
Paramount and Warner Brothers Merger Approved…
Β The proposed Paramount and Warner Brothers Merger has cleared a…
By β Jackie Allen
David Geffen Reunites With Ex-Husband Aboard…
Β David Geffen is making headlines again after being spotted spending…
By β Jackie Allen
Me Too Fallout Deepens as French…
The Me Too movement continues to reshape France’s entertainment industry…
By β Jackie Allen
Iran Agreed to US Demands: Trump…
In a major diplomatic development, Iran Agreed to US Demands,…
By β Jackie Allen
Steven Spielberg’s Long-Awaited Alien Thriller ‘Disclosure…
Steven Spielberg, one of the greatest living filmmakers and a…
By β Rachel Moore
Steven Spielberg’s Long-Awaited Alien Thriller ‘Disclosure…
Steven Spielberg, one of the greatest living filmmakers and a…
By β Rachel Moore
Massive Blaze Engulfs Major Medical Supply…
A raging inferno erupted Thursday afternoon at a large medical…
By β Rachel Moore
Mysterious “8647” Giant Etching Appears on…
U.S. federal authorities are scrambling to investigate a bizarre and…
By β Rachel Moore
Chicago Bracing for Round Two: Moderate…
Just as Chicago-area residents were beginning to clean up debris…
By β Rihem Akkouche
Minnesota Assassin Spares Himself the Death…
Vance Boelter, the man accused of carrying out a brutal…
By β Rihem Akkouche
Judge Drops Bombshell Warning to Trump…
A federal judge on Wednesday refused to immediately block the…
By β Rihem AkkoucheThe Me Too movement continues to reshape the entertainment industry…
By β Jackie Allen
Fatal Accident in Tulsa: Oklahoma Father…
A Fatal Accident in Tulsa that claimed the life of…
By β Jackie Allen
βYouβre Killing Meβ Brings Brooke Shields…
βYouβre Killing Meβ is one of Acorn TVβs newest mystery…
By β Jackie Allen
Karmelo Anthony Sentenced to 35 Years…
The case of Karmelo Anthony has drawn widespread attention across…
By β Jackie Allen
Trust Fund Battle Emerges in Rob…
The legal fight over a trust fund established by filmmaker…
By β Jackie Allen
OpenAI Moves Toward Historic IPO as…
OpenAI, the company behind the wildly popular ChatGPT chatbot, has…
By β Jackie Allen
OpenAI Moves Toward Historic IPO as…
OpenAI, the company behind the wildly popular ChatGPT chatbot, has…
By β Jackie Allen
New York Knicks NBA Finals Game…
The New York Knicks took center stage during Game 3…
By β Jackie Allen
Cockroach Kingpin Busted: More Than 100,000…
A suspected βCockroach Kingpinβ has been caught in what authorities…
By β Jackie Allen
Skywatchers Events June 2026
Several meteor showers remain active throughout June. Skywatchers events also…
By β Jackie Allen
Sky Tonight App Highlights June 2026βs…
The Sky Tonight App is helping skywatchers make the most…
By β Jackie Allen
Domestic Violence Deaths Remain High as…
Domestic Violence continues to claim lives across the United States…
By β Jackie Allen
Higher Education System Failure As Elite…
The numbers are officially in and they represent a catastrophic…
By β Tyler Brooks
Elon Musk Executes Radical Strategy To…
The global semiconductor industry is bracing for a total systemic…
By β Tyler Brooks
The Reckoning Of Government Secrets As…
A violent storm is gathering in the halls of Washington.…
By β Tyler Brooks
The Wall Street: How An Outsider…
The ivory tower of high finance is under siege. For…
By β Tyler Brooks
The Streaming War: Paramount Unleashes Legal…
Paramount Declares All-Out War Against Netflix Over Alleged Scorched Earth…
By β Tyler Brooks
The Bombshell War: Three Infiltrators Detonate…
The Fijian villa will never be the same. In one…
By β Tyler Brooks
Nichelle Nicholsβ Final Mission Ends in…
By Samuel LΓ³pez | USA Herald The woman who helped…
By β Samuel Lopez
Cannabis Giants Hit with Sweeping Class…
A major class action filed May 4, 2026, accuses five…
By β Samuel Lopez
New Pill Doubles Survival for Pancreatic…
Pancreatic cancer pill doubles life to 13 months By Tyler…
By β Tyler Brooks
FDA warns public as cookie firm…
FDA warns public as cookie firm rejects urgent recall request…
By β Tyler Brooks
Trump orders CDC to slash childhood…
Trump orders CDC to slash childhood vaccines from 17 to…
By β Tyler Brooks
USDA warns Americans over Salmonella in…
USDA warns Americans over Salmonella in meat products By Tylor…
By β Tyler Brooks
Mexico vs South Africa World Cup…
The 2026 FIFA World Cup is officially underway, but the…
By β Rihem Akkouche
FIFA World Cup 2026: Gianni Infantino…
The countdown to the FIFA World Cup 2026 has transformed…
By β Tyler Brooks
The Halfway House Showdown: Convicted Serial…
Justice. Accountability. Public Safety. For the survivors who faced Darren…
By β Tyler Brooks
Chinese Company Blocked from Claiming Olympic…
By Samuel LΓ³pez | USA Herald The Olympic rings are…
By β Samuel Lopez
Lawsuit Aims to Knock Out Trumpβs…
By Samuel LΓ³pez | USA Herald The fight may not…
By β Samuel Lopez
2026 Stanley Cup Final Game 2:…
2026 Stanley Cup Final Game 2: A Thrilling Comeback The…
By β Tyler BrooksNo posts found.
No posts found.
