Iowa Soybean Company Sues Insurance Carrier

A Mason City soybean company is suing its insurance carrier for not covering damage to a shipment that became infected with Indian meal moths in 2005.

Midwestern Soybeans International Inc. filed lawsuit this month in Cerro Gordo County District Court. The company accuses Des Moines-based Continental Western Insurance Co. of failing to pay about $186,000 in damages when a shipment of soybeans arrived in Japan and was rejected due to the moths.

According to court documents, Continental Western denied coverage based on an exclusion claiming the soybean damage occurred before the beans were transported. Kim Pleggenkuhle, owner of Midwestern Soybean, said the moths were not present when the soybeans left for Japan.

Information from: Globe Gazette, http://www.globegazette.com/