Pennsylvania State University has sued PennsylvaniaManufacturers' Association Insurance Co.—the school's liabilityinsurer of more than 50 years—for denying coverage for litigationcosts related to former assistant football coach JerrySandusky.

According to the breach-of-contract complaint, the universityhas been sued or contacted by 30 claimants but the insurer has“failed and refused to agree to provide, and is not providing, toPenn State the benefits due under any PMA policy.”

Penn State is being sued by, or has been put on notice by,multiple victims of Sandusky, who was found guilty in June 2012 on45 of 48 counts related to the sexual abuse of boys. He wassentenced to 30-60 years in prison.

“Penn State will aggressively pursue the coverage for which ithas paid over $23 million since 1983, and to which it is entitled,”says university spokesman David LaTorre, in a statement emailed toPC360.

PMA has been the school's commercial general liability insurersince the 1950s. The insurer says it has no comment on thelitigation.

LaTorre says PMA “has essentially abandoned a decades-longclient.”

Soon after the first of these Sandusky-related suits was filedagainst Penn State, PMA filed a lawsuit in January 2012 seeking adeclaratory judgment that it has no duty to defend or indemnify Penn State.

Penn State President Rodney Erickson has said the universityplans to settle with the victims of Sandusky and a “bulk of thefunding” for settlements will come from insurance.

Erickson says Penn State has “multiple stacks” of liability insurance as well asdirectors' and officers' liability insurance.

“The university continues to believe its General Liability andDirectors & Officers insurance policies will cover the defenseof claims brought against the university and its officers,employees and trustees,” says LaTorre. “Student tuition, taxpayerfunds or donations will not be used.”

According to information in the suit, the policies conatin a $2million per-occurrence limit and a $3 million aggregate limit,except for the policy periods from 1988-1990, which have slightlydifferent limits.

In other recent, insurance-related news to come from theSandusky scandal, a federal judge in Pennsylvania ruled Federal Insurance Co. has no duty to defend the convicted childmolester and sex abuser.

Sandusky and his homeowners' insurer, State Farm, settled alawsuit brought by the insurer to similarly have a judge declarethe company has no obligation to defend Sandusky.