American Insurance Co. must pay out on a $50 million policy covering St. Jude Medical Inc. (NYSE:STJ) against claims involving its Silzone coating for artificial heart valves.
AIC held the sixth "layer" of an eight-layer product liability policy covering St. Jude between
Jan. 31, 1999, and Jan. 31, 2000. That means the insurer would provide the $50 million once claims to the five prior insurance companies in the plan reached $150 million.