CARSON CITY, Nev. (Legal Newsline) — Nevada Attorney General Adam Paul Laxalt announced this week that his office has settled with the Insurance Company of the State of Pennsylvania (ICSOP), a subsidiary of AIG.
In 2013, Nevada dealt with a lawsuit from the city and county of San Francisco. The city alleged individuals discharged from the
Rawson-Neal Psychiatric Hospital received transportation subsidies enabling
them to travel to cities in California, including San Francisco. Nevada denied
all allegations in the claim, but settled it after determining the costs of
defending the lawsuit would outweigh the settlement amount.
Nevada then placed an insurance claim with ICSOP, which allegedly denied coverage. In July, Nevada brought a lawsuit against the
company to recoup settlement costs and attorney fees beyond the $2
ICSOP’s settlement resolves the
dispute. As per the settlement agreement, AIG did not admit wrongdoing, but
paid Nevada $300,000.
"The Attorney General's Office reached a thoughtful and mutually
favorable resolution of this matter through an amicable settlement with AIG
without being embroiled in costly and time-consuming litigation," Laxalt
"From my first day in office, I am incredibly impressed by
how my team of in-house lawyers, including my Solicitor General's Office and
Complex Litigation Department, handled the San Francisco matter and this
related insurance dispute.”