AIG Executive and Attorney Jailed Over D&O Insurance Dispute In Mexico

Now we know why there are far fewer insurance coverage disputes in Mexico than in the U.S.  The policyholder gets to file a criminal complaint for fraud and have the insurer's management taken to jail. 

Apparently, TV Azteca S.A. de C.V. submitted a claim under its Directors and Officers Insurance Policy, which the insurer, AIG Mexico Seguros Interamericana, S.A. de C.V., denied.  "Fraud!" said Azteca.  So in late April, AIG's, general manager, Luis Ferrara Perini and AIG's outside attorney, Nestor Diaz Barriga, were jailed.  Just this week, AIG apparently paid the claim and the individuals were released.  See AIG Executives Released From Jail, reported in May 5, 2008 edition of Business Insurance.

I say "apparently" because much of the story is based on comments from brokers involved in the case who, for obvious reasons, wish to remain anonymous (and unincarcerated). 

Gives a whole new meaning to Alternative Dispute Resolution.

Comments

[NG]

I would love to see more discussion on this. Would this qualify for coverage under kidnap and ransom coverage since it appears to be a "normal" business practice there?