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Another Penn State Insurer Seeking Deny, Limit Coverage in Sandusky Case

Source: AP

Posted on 27 Jul 2012 by Neilson

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Penn StatePenn State's general liability insurer hopes to deny or limit coverage for Jerry Sandusky-related claims.

The Pennsylvania Manufacturers' Association Insurance, argues that Penn State withheld key information needed to assess risk, at least after school officials investigated a May 1998 complaint that Sandusky had showered with a boy on campus.

In a memo filed this week in Common Pleas Court in Philadelphia, the company argues that Penn State failed to disclose that it had information about Sandusky that "was material to the insurable risk assumed by PMA."

The company, which has long insured the university, also argues that its policies after March 1, 1992, were amended to exclude "abuse or molestation." The insurer also argues that coverage for such behavior is excluded as a matter of public policy in Pennsylvania.