United, AIG Put Suit on Hold for 90 Days

Both parties to a UAL Corp. lawsuit against Insurance Co. of Pennsylvania, a unit of American International Group, have agreed to put a 90-day stay on the matter in an attempt to reach a settlement out of court, according to a UAL spokesman.

“The parties involved in the lawsuit agreed to the stay to allow more discussion between the parties that could lead to a resolution,” Jason Schechter, a UAL spokesman, told Insurance Journal.

UAL, the parent of United Airlines, had filed suit against the AIG unit in relation to the Sept. 11 terrorist attacks, claiming the insurance policy covered the event up to $25 million. It is not clear on what grounds AIG has contested United’s position. AIG has refused to comment on the case and did not return calls from Insurance Journal.

“As we understood it our policy provides gross earnings and extra expenses as a result of terrorism or sabotage,” Schechter said. He did not know whether UAL had filed similar lawsuits against any other insurers or had resolved any earlier Sept. 11-related claims with AIG out of court.