Penn State settles with carrier over Sandusky

Penn State settles with carrier over Sandusky

Penn State settles with carrier over Sandusky

Pennsylvania Manufacturers Association Insurance (PMAI) and Penn State have settled the high profile dispute over $90 million of child sex abuse claims. 

The claims were against former Coach Jerry Sandusky who is a convicted child molester.

The current dispute started in 2013 when the University sued PMAI after it made settlements with 32 people who made claims against Sandusky and the University over allegations of molestation. Sandusky was convicted in 2012 on 45 counts. He had retired from the university 13 years earlier, but a number of claims were made that the abuse happened on Penn State property. 

Penn State had expected insurance to cover the claims, but earlier this year a Judge ruled that PMAI’s policy had a molestation or abuse exclusion for seven years from 1992- 1999. Around 30% of the claims were from that era.

Court documents showed that claims of molestation had been made as far back as the 1970s and that some alleged victims said they had told another Coach of the incidents.

Details of the settlement were not revealed.