Sandusky legal fees not covered by State Farm, D&O policy disputed

Advertisement

State Farm will not have to pay for the defense or any civil awards against Jerry Sandusky, the former Penn State assistant football coach who is serving a 30- to 60-year prison sentence for sexually molesting boys.

Sandusky mugshot

Jerry Sandusky police mugshot

At issue was whether the homeowner’s insurance policy of Sandusky and his wife, Dorothy Sandusky, would cover legal or civil costs.

A state judge affirmed an agreement between State Farm and the Sandusky’s ending the dispute and a suit filed by State Farm, which claims it had no duty to pay for intentional act’s arising from a policyholder’s malicious conduct. Dorothy Sandusky was named as a defendant in the case, as her name is on the policy.

In another case, Federal Insurance Co., part of Chubb Group, is denying claims placed with it in relation to a directors-and-officers liability policy that covered Sandusky, who founded The Second Mile, a charity organization designed for at-risk children. Federal says Sandusky’s conduct does not fall within the charity’s purpose, relieving the insurer of responsibility.

Sandusky, who is appealing his conviction, argues that the policy provides him coverage.

According to reports, Federal continues to pay Sandusky’s legal fees.

2 Responses

  1. Jack Thomas Says:

    I am sure the policy language in the State Farm HO policy is similar to most companies, so this claim denial is not surprising.

Pages linking to this article:

Leave a Comment

Follow IFAwebnews: 
Important links and updates throughout the day via Twitter Join IFAwebnews’ Insurance News group on LinkedIn.com Become a fan of IFAwebnewss Insurance News on Facebook Feeds for all the ourinsurance news or just the lines you need. Insurance news delivered to your inbox
© 2013 New Horizon Group, Inc. :: Insurance & Financial Advisor | IFAwebnews.com :: NS 163 queries. 0.472 seconds.