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

July 23, 2012

  • July 23, 2012 at 1:29 pm
    Ruminator says:
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    all polices are clear in stating there is no coverage for intentional/criminal acts of the Insured. No coverge, no require to provide a defense or pay court costs.

  • July 23, 2012 at 1:30 pm
    reality bites says:
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    “Wait a minute folks. There’s a flag thrown on the field. The ref is speaking.”

    “10 inch penalty for illegal hold, and a Game Misconduct for the bench. Balls stripped away from Assistant Coach and immediate forfeiture for the balance of the season.”

    • July 23, 2012 at 7:30 pm
      Maxine says:
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      Get a life, U R disgusting

  • July 23, 2012 at 1:32 pm
    Longtime Broker says:
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    So Sandusky wants the insurance companies to pay his defense costs…REALLY?
    Put him in Jail and throw away the Key….or better yet, just let him loose in Gen Pop….he’ll then know how those kids felt..

    • July 23, 2012 at 1:43 pm
      hammer10 says:
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      Insurance Companies will pay indemnity and defense for intentional acts by celebrities. They do it all the time. State Farm and Chubb picked up the tab for Bill Clinton in the Paula Jones sexual harassment case. They split $750,000 indemnity payment and the millions of dollars in defense. (Bob Bennett at $1,000+ per hour)
      CNA paid OJ Simpson’s defense costs during his civil trial for millions of dollars. I guess killing your wife is not intentional.
      Insurance companies will pay criminal defense costs, but depends on the case.

      • July 30, 2012 at 10:19 am
        Flagent/insured says:
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        Yes but they weren’t found guilty and Sandusky was, that’s the difference. Besides State Farm was sued for paying out to Bill Clinton.

  • July 23, 2012 at 1:32 pm
    hammer10 says:
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    Both State Farm and Chubb extended coverage to Bill Clinton in the sexual harassment case involving Paula Jones. The indemnity settlement of $750,000 was split between the two companies. The defense bill was estimated to be millions of dollars (Bob Bennett was the lawyer at $1,000 per hour) and split between the two companies.
    Let’s not forget OJ Simpson’s civil trial, CNA picked up his defense fees.
    The bottom line is that you have to be a bigger celebrity than Jerry Sandusky.

    • July 23, 2012 at 1:37 pm
      reality bites says:
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      I may be mistaken, but Sandusky’s issue is different. This announcement appears to come AFTER his gulity verdict, while neither Bill Clinton nor OJ Simpson were found guilty of committing an illegal act.

  • July 23, 2012 at 1:59 pm
    MarketMaker says:
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    Peculiar that State Farm covered Clinton’s Paula Jones and Gennifer Flowers bills. I guess it matters what kind of publicity a carrier can generate – that’s what I call the spirit of the contract!

  • July 23, 2012 at 2:07 pm
    Envious says:
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    Wonder what SF will do when the victims sue Jerry’s wife for negligence under the homeowner / Umbrella policy limits. She was apparently upstairs, and he was downstairs olesting the kids. If she was on the board for the Foundation as well, there are all sorts of avenues for civil suits.

    • July 30, 2012 at 10:21 am
      Flagent/insured says:
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      Now that will be the one to watch.

    • July 30, 2012 at 2:29 pm
      Nebraskan says:
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      Don’t they have to defend her? That is what the policy is for, it doesn’t matter what she is being sued for. They just wouldn’t pick up the tab for punitive damages.

    • July 30, 2012 at 2:30 pm
      Nebraskan says:
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      And my comment in general is a question. I’m not trying to point out the obvious, because I don’t know if what I’m saying is correct.

  • July 23, 2012 at 2:56 pm
    Tim says:
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    I think the real language is something like ” no coverage for which the damages were intended.” it is an intentional act to get drunk and drive. But the key is you did not “intend” to run into the other car so you have coverage. In Clinton’s case he had sex with a consenting adult. He did not intend to create damages. In Sandusky’s case he committed both an illegal act and since it was with a minor we can argue he knew what “damages” he might create. These cases are very tricky and the devil is in the details. I really don’t think celebrity is part of the issue here.

  • July 23, 2012 at 2:58 pm
    LetEmFry says:
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    The wife should go to jail too…general population is what they both deserve.

  • July 23, 2012 at 3:21 pm
    Snake Farm says:
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    They put their insurance with State Farm? Geeze……

    So much for “like a good neighbor, State Farm is there”. NOT!

    • July 30, 2012 at 4:19 pm
      IndianaAgent says:
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      I’m surprised he had State Farm too! They mostly write trailers and lower limits around here. Leave all the big stuff for us IA’s.

  • July 23, 2012 at 4:06 pm
    Other says:
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    The company will not pay because he was found guilty. A guilty verdict in this type of case can be seen as an ‘intentional act,’ unless someone proves otherwise. I don’t think that his family is to blame but they will be destroyed by his wicked ways. It’s unfair really who has to suffer for his selfishness. I can’t blame his wife either, if it were my spouse I would have stood by their side for support unless someone proved to me that they were guilty. All you can really hope for is that everyone is able to get closure and hope for a better future.

  • July 23, 2012 at 5:34 pm
    Darmour says:
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    Child molestation is not covered under a HO policy and shouldn’t be!

  • July 23, 2012 at 9:07 pm
    George says:
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    On the contrary, Snake Farm. You should be saying…. “Like a good neighbor, State Farm is there…. not helping finance child criminal defense legal fees!” THANK YOU, STATE FARM!

  • July 24, 2012 at 12:32 pm
    Bill says:
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    The being found guilty is not the issue. Defense coverage is not dependent upon the outcome. You either have it or you don’t. The issue is the act was not covered. If you drink and drive and kill someone, even if you are found guilty of drinking and driving, your insurance will pay both defense (of the civil trial) and damages. It will not pay defense of the drinking and driving charge because there is no coverage against getting caught drinking while driving. In this case we had a criminal charge of an intentional act(s). There is no coverage under the policy for this. There should be a judgement entered for the insurance company.

    On the civil side, the best that someone may try for is if there is PLUP involved, they may make a claim of wrongful imprisonment or something like this. Whether or not that actually is what happened, making this claim as a victim forces the insurance company to litigate to a degree because there is coverage for this act specifically. Rather than fight the victim at that point, the company may offer the settle something with the injured party. Though in this case that seems very unlikely. With Penn State and even the NCAA/Big Ten offering millions I tend to doubt these folks will even bother trying to get a thing from this guy. Why bother? He is gone for life. If his wife is free though and not charged or never serves, that may be an option (my opinion only).

  • July 24, 2012 at 2:16 pm
    FFA says:
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    He is a dirt bag. Chop off his ding a ling and the victims have their way with him for a while. Then, publically execute him in a long slow pain full mannor.

  • July 24, 2012 at 2:16 pm
    UCT says:
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    As a State Farm policyholder, I am happy to know they do not back child molestors. I applaud them for their stance.

    This man should be sentenced to a small cell with a very large cellmate. An eye for an eye. Let him be tortured for the remainder of his life the way he tortured innocent children.

  • July 24, 2012 at 6:14 pm
    insurance is fun! says:
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    Awe. Too bad. This poor guy just can’t catch a break.

  • July 25, 2012 at 7:54 am
    SEAN says:
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    YEH LET’S APPLAUD STATE FARM FOR THIS BUT WHAT ABOUT ALL THE OTHER LEGITIMATE CLAIMS THEY “BEND THEIR POLICY HOLDERS OVER FOR” !!

  • July 25, 2012 at 11:19 am
    wudchuck says:
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    it was an intentional act and surely the homeowner policy should not cover him… but what about the charity? that he was apart of? did not the insurance from there cover him? or was there language in there for intentional acts?

    • July 26, 2012 at 12:58 pm
      Ins Guy says:
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      Not him. Only the charity for potential liability/defense. Was he the Chair or CEO of the charity? If so, do the other directors have negligent oversight liability? Were they ever made aware of any of this?

  • July 27, 2012 at 11:47 am
    hammer10 says:
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    It is NOT uncommon for insurance companies to pay legal fees in cases involving coverage disputes and sometimes will pay indemity as well. It all depends on the situation. Many insurance companies paid indemnity and defense on the Catholic Church molestation claims. The recent dot-com melt down generated thousands of suits against public traded companies. Many of these claims where strong coverage exclusions exit were negotiated for economic and business reasons. Environmental claims are often settled via policy buy-back where the coverege is questioned. And believe me when dealing with a celebrity/politician as a named insured—–coverage exclusions/conditions in the majority of cases do not apply. If you can get your homeowners carrier to cover defense costs for wacking your wife as OJ Simpson did, anything is possible. Just my two cents based upon handling thousands of claims at the primary, excess, and reinsurance level.

  • August 6, 2012 at 4:52 pm
    FlatCrazy 7 says:
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    I would venture to say that Sandusky’s lawyers have roped in every insurance company that has even the slightest connection to Jerry Sandusky, the fired administrators, Joe Paterno and remaining family, Pennsylvania State University, The State of Pennsylvania, The Second Mile,Nike,the NCAA and who knows…maybe even Charlie Sheen. The lawyers need to be paid and they WILL be paid and very likely by insurance carriers even if it requires a court order and total disregard for policy language by the judge(s). Happens all the time.



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