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Penn State insurer to deny paying Sandusky claims

Penn State's insurance company says it will deny covering claims related to the Jerry Sandusky child abuse scandal.
Jerry sandusky jury has many penn state ties june 6 2012Enlarge
Former Penn State assistant football coach Jerry Sandusky enters the Centre County Courthouse as the second day of jury selection begins in his child sex abuse trial on June 6, 2012, in Bellefonte, Pennsylvania. Sandusky is charged with 52 criminal counts of alleged sexual abuse of children. (Patrick Smith/AFP/Getty Images)

Penn State’s insurance company, Pennsylvania Manufacturers Association Insurance (PMA), said it will try to deny covering claims related to the Jerry Sandusky child abuse scandal, the AP reported.

Because Penn State failed to inform its insurer that Jerry Sandusky was sexually abusing children—and there’s evidence the college had investigated its coach back in 1998—the company argued it should not be liable for damages that result from the case.

CNN obtained the motion filed by PMA:

"It would be unlawful and contradictory to public policy to require PMA to provide coverage to PSU under any policy issued to PSU after May 1998 with respect to PSU's concealment of Sandusky's sexually abusive conduct ... and failure to take appropriate action to prevent Sandusky from molesting minors.”

If that argument doesn’t work, PMA has another card to play. The company says it can also deny covering Sandusky related claims because “abuse and molestation” are not covered in Penn State's insurance contract, according to the AP.

Back in June, Sandusky, a Penn State coach for over 40 years, was convicted on 45 counts of sexual abuse.
 

http://www.globalpost.com/dispatches/globalpost-blogs/world-at-play/penn-state-insurer-deny-paying-sandusky-claims

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