Sandusky, State Farm End Coverage Dispute

Former Penn State University assistant football coach Jerry Sandusky in an Oct. 9 file photo being taken from the Centre County Courthouse. (AP Photo/Matt Rourke, File) Former Penn State University assistant football coach Jerry Sandusky in an Oct. 9 file photo being taken from the Centre County Courthouse. (AP Photo/Matt Rourke, File)

Convicted child abuser Gerald Sandusky and his homeowners’ insurer, State Farm, settled a lawsuit brought by the insurer to have a judge declare the company has no obligation to defend the former Penn State University assistant football coach.

Sandusky had looked to his State Farm homeowners’ policy for defense and indemnity costs related to his criminal trial and a civil lawsuit filed against him.

According to court records, U.S. District Court Judge Yvette Kane in the Middle District of Pennsylvania dismissed the suit after Sandusky and State Farm filed a consent motion to dismiss the case.

The consent order is signed by Sandusky and his wife, Dorothy.

“Gerald Sandusky has no intention to tender to State Farm any future claims similar to the claims involving alleged sexual misconduct that he previously tendered,” reads the order, which adds that the couple agrees with State Farm that it “has no obligation to provide defense to or indemnify” Sandusky.

State Farm began insuring the Sandusky home in State College, Pa. in April 1985. It was primarily a property coverage policy with limited personal liability coverage applying only to bodily injury caused by an occurrence, according to court documents.

Sandusky in June 2012 was found guilty on 45 of 48 counts related to the sexual abuse of boys.

The insurer did provide a defense to Sandusky for the civil action filed in November 2011—shortly after Sandusky was first charged with sex crimes—involving his charity for children with dysfunctional families.

State Farm says it issued a “reservation of rights letter” to Sandusky, which informs a policyholder that an insurer may eventually deny coverage for all or part of the claim.    

The homeowners’ policy “excludes coverage for bodily injury that is intentionally caused by the policyholder” and it does not cover injury due to “willful and malicious acts of the policyholder.”

Comments

Resource Center

View All »

Complimentary Case Study: Helping achieve your financial goals By:...

Find out how a Special Investigation Union used TLOxp to save the company money and...

Do Your Clients Hold The Right CDL License?

Learn about the various classes of CDL Licenses and the industries that are impacted by...

Integrated Content & Communications: A Key Business Issue For Insurers

Insurers are renewing their focus on top line growth, and many are learning that growth...

High Risk Insurance Coverage in the E&S Market

Experts discuss market conditions, trends and projected growth in a rapidly changing niche.

Top E-Signature Security Requirements

This white paper covers the most important security features to look for when evaluating e-signatures...

EPLI Programs Crafted Just For Your Clients

Bring us your restaurant clients, associations and other groups and we’ll help you win more...

Is It Time To Step Up And Own An Agency?

Download this eBook for insight on how to determine if owning an agency is right...

Claims - The Good The Bad And The Ugly

Fraudulent claims cost the industry and the public thousands of dollars in losses. This article...

Leveraging BI for Improved Claims Performance and Results

If claims organizations do not avail themselves of the latest business intelligence (BI) tools, they...

Top 10 Legal Requirements for E-Signatures in Insurance

Want to make sure you’ve covered all your bases when adopting e-signatures? Learn how to...

PropertyCasualty360 Daily eNews

Get P&C insurance news to stay ahead of the competition in one concise format - FREE. Sign Up Now!

Advertisement. Closing in 15 seconds.