DOW JONES NEWSWIRES
Insurer Hartford Financial Services Group Inc. (HIG) filed suit
to determine whether it must pay claims filed by victims of a
salmonella outbreak that has led to more than 500 illnesses and may
have contributed to eight deaths.
Hartford said the number of claims asserted against Peanut Corp.
of America seeking damages because of injury, sickness or disease
is likely to rise. As such, it is examining the coverage terms and
whether it limits or nullifies coverage for one or more of the
salmonella claims. The suit was filed in federal court in Virginia
on Tuesday.
Hartford spokesman David Snowden said, "We believe this will
help clarify the claims process."
The Food and Drug Administration had traced the illnesses to a
Georgia processing facility owned by Peanut Corp.
The company, which recalled its products dating back to Jan. 1,
2007, said in a statement released Wednesday that inspections of
the Blakely, Ga., facility were performed by federal and state
regulators in 2008, and said its plant got an overall superior
rating on one visit and another was found to "meet or exceed"
expectations.
Peanut Corp. added that due to the nature of the continuing
investigation, it couldn't comment on the facts related to the
product recalls.
The House Energy and Commerce Committee plans a hearing on
Wednesday to examine the salmonella outbreak.
Peanut Corp. supplies peanut butter and peanut paste to
institutional users, such as schools and nursing homes, and to food
processors that use them in a wide range of products such as
cookies, snacks and dog treats.
-By John Kell, Dow Jones Newswires; 201-938-5285;
john.kell@dowjones.com