State Farm: Sandusky’s Homeowners Policy Doesn’t Cover His Legal Bills

July 23, 2012

State Farm has filed a lawsuit in Pennsylvania last Thursday against former Penn State assistant football coach Jerry Sandusky.

In its complaint, State Farm asked a judge to declare that the insurer’s homeowners’ policy for Sandusky does not cover legal costs for his criminal defense or civil lawsuits brought by his victims.

Allentown Morning Call reported this morning that State Farm Fire and Casualty Co. filed the lawsuit in U.S. District Court for the Middle District of Pennsylvania. State Farm states in its lawsuit that Sandusky had asked the insurer to pay for legal costs of his criminal defense.

State Farm declined Insurance Journal‘s request for comment on the lawsuit because the matter is in litigation.

Homeowners’ insurance can offer coverage for claims arising from the insured’s negligent acts but not for intentional acts.

Last month, a Pennsylvania jury found Sandusky guilty of 45 charges brought against him for sexually abusing at least 10 young boys between 1994 and 2008.

State Farm is not the only insurance company involved in a legal fight against Sandusky. Federal Insurance Co., part of Chubb Group of Insurance Companies, filed a suit last December, arguing that it is not obligated to pay for Sandusky’s defense costs or indemnify him for civil or criminal judgments.

Federal Insurance had issued a directors-and-officers liability and employment practices liability policy in March 2011 for The Second Mile, a youth charity group founded by Sandusky, for the period that covers April 1, 2011 to April 1, 2012.

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