04:01 PM EDT, 09/03/2024 (MT Newswires) -- Two American International Group ( AIG ) insurance subsidiaries will not be required to bear legal costs of a Texas weapons seller accused of supplying components used to make so-called "ghost guns," a federal judge ruled last week.

Primary Arms is one of 10 defendants accused separately by New York Attorney General Letitia James and the cities of Buffalo and Rochester in New York, of selling and shipping unfinished gun parts lacking serial numbers to buyers wanting to evade registration rules for weapons.

The AIG subsidiaries, Granite State Insurance and National Union Fire Insurance Company of Pittsburgh, argued they were not responsible for Primary Arms' legal costs under terms of their commercial liability policies with the company.

In her Aug. 30 ruling, US District Court Judge Lorna Schofield rejected Primary's counterclaim that insurers were obligated to defend it from any lawsuits seeking damages for bodily injuries or property damage caused by an accident or similar occurrence. The company's sale of gun components could not be considered accident, she wrote, "because their effect was alleged to be fully intended and expected and therefore not an 'accident.'"

The order requires the parties to disclose their next moves by the end of the week.