Iowa Mill Company Suing AIG, ACE Over Flood Insurance Claims

March 23, 2009

A Cedar Rapids corn milling company is suing a unit of insurance giant AIG and another company, accusing them of acting in bad faith for refusing to pay flood insurance claims.

Penford Products Co. is one of many eastern Iowa businesses suffering losses after massive flooding in eastern Iowa last June.

The company says it had a $300 million property insurance policy through an AIG unit and another insurance company, but has collected only $20 million on more than $50 million in claims.

Penford has filed suit against National Union Fire Insurance Co. of Pittsburgh, the AIG unit, and ACE American Insurance Co. of Philadelphia.

Those companies are disputing some of the claims made under the complex policy.


Information from: The Gazette,

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