Insurer: Penn State Policy Limits Lawsuit Coverage

February 3, 2012

Penn State’s insurer wants a judge to determine if it has to provide coverage or pay for defense costs in a lawsuit over alleged child sex abuse by former football coach Jerry Sandusky, a newspaper reported Wednesday.

The complaint filed by the Pennsylvania Manufacturers’ Association Insurance Co. in a Philadelphia court claims its coverage for abuse or molestation only pertains to a limited time period, the Legal Intelligencer reported.

The lawsuit said that if the alleged acts began in early 1992, then Penn State could claim coverage under a previous policy, the paper said.

Penn State has sought coverage from the company for a lawsuit filed in November by a young man who claims Sandusky sexually abused him as a boy more than 100 times and threatened to harm his family to keep him quiet.

Penn State spokeswoman Annemarie Mountz said the lawsuit is meritless and the university plans to defend its rights under its insurance policies.

The newspaper said a lawyer who represents the insurance company declined to comment.

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