AIG's D&O insurers pay to settle suits

American International Group Inc.'s insurers agreed last week to pay $90 million to settle derivative lawsuits alleging that former CEO Maurice Greenberg and other executives misled investors while running the insurance company. The payment will go to AIG, not individual investors.

SeaWorld challenges fines in trainer's death

SeaWorld of Florida L.L.C. said it is contesting citations and fines totaling $75,000 by the Occupational Safety and Health Administration in the death of an animal trainer. An OSHA investigation into the incident found that even though trainers had a history of unexpected and potentially dangerous incidents involving killer whales at various SeaWorld facilities, including Orlando, SeaWorld management “failed to make meaningful changes to improve the safety of the work environment for its employees,” OSHA said in a statement.

WTC Captive opt-in deadline extended

WTC Captive Insurance Co. has extended its deadline for opting into its settlement to Nov. 8 from Sept. 8, the captive said.. The company said the extension would allow rescue and recovery workers who filed suit against New York City over their exposure to contaminants at the World Trade Center site that was attacked Sept. 11, 2001, by terrorists more time to consider whether to accept the settlement.

Court vacates $34.4M award against AIG

A federal appeals court vacated a $34.4 million judgment against American International Group Inc. that a jury awarded to AXA S.A., holding that AXA's charges were fraud-related and had expired under the statute of limitations. According to court papers, a jury in 2008 held AIG liable for $34.4 million, including $5.8 million in punitive damages, on claims of “fraudulent inducement” with respect to two 1997 and 1998 reinsurance facilities that AIG had agreed to with AXA as the reinsurer.

Court OKs award to spouse for asbestos exposure

A woman's “bystander exposure” to asbestos from washing her husband's work clothes for more than three decades substantially contributed to her mesothelioma, a New Jersey appellate court has ruled in upholding a $7.5 million jury award. The ruling upheld a jury award of $7 million for the woman and $500,000 for her husband, plus prejudgment interest.

BB&T gets OK to fund benefits via captive

The Labor Department has given tentative authorization to BB&T Corp. to fund employee benefit risks through the South Carolina branch of its Bermuda-based captive insurance company. Under the proposal, life and disability policies written by Hartford Life & Accident Insurance Co. would be reinsured through BB&T Assurance Co. Ltd.

Brokers profitable in 2009: Moody's

The U.S. insurance brokerage sector remains financially solid despite economic challenges, according to an Industry Scorecard report by Moody's Investors Service. “While the economic downturn and lower pricing resulted in marginal or even negative organic growth for some insurance brokers in 2009, overall the industry was able to maintain profitability,” Moody's said in the report.

Glacier Re puts portfolio into runoff

Glacier Reinsurance A.G. said its existing insurance portfolio will be placed into an orderly runoff, and the company no longer will write or accept new business. Glacier Re will manage the runoff process itself, the reinsurer said in a statement.

California work comp combined ratio increases

California workers compensation insurers' combined ratios climbed during 2009 to the highest level since 2001, while average claims costs continued increasing, according to a report on insurer experience. The ultimate accident-year 2009 combined ratio is estimated to have reached 124%, the Workers' Compensation Insurance Rating Bureau of California said in its report.