Penn State Countersues PMA for Sandusky Coverage

Penn State has filed a countersuit against its primary general liability insurer, Pennsylvania Manufacturers’ Association (PMA) Insurance Co.

Penn State’s countersuit follows an earlier suit from PMA. The Blue Bell, Penn.-based insurer filed for declaratory judgment on Jan. 31, arguing that it shouldn’t have to pay for the university’s defense costs in a civil lawsuit regarding the alleged misconduct of Jerry Sandusky, a former university football coach. PMA argued that it is not obligated to pay out on policies because of exclusions for “abuse or molestation,” “intentional acts” and “known loss.” But in its countersuit, filed on Feb. 15, Penn State argued that its liability policy from PMA should provide a legal defense and coverage of the lawsuit.

“Despite substantial insurance premiums paid by the university to PMA over decades, PMA has refused to provide the coverage for which the university is entitled,” Penn State stated. “We are extremely disappointed that rather than act in good faith with its insured, PMA instead chose to file an anticipatory lawsuit against us.”