The allegations joining PennState and its officials with the Jerry Sandusky sexual-abuse casesprovide a regrettable study of how we turn to insurance to help usthrough the worst of situations—at least financially. As theseallegations play out, the media has been quick to discuss theirdevelopment and speculate on how the university's defense will befunded.

Penn State's Openness Website, dedicated to providing “the latest information…regardingongoing investigations,” reports that the university carriesGeneral Liability and D&O insurance, “which are expected tocover the defense of claims brought against the university and itsofficers, employees and trustees” in the Jerry Sandusky case. TheGeneral Liability carrier is identified as the PennsylvaniaManufacturers' Association (PMA), which has provided GeneralLiability insurance for Penn State from the 1950s to thepresent.

Also mentioned on the Openness site is the fact that PMA filed alawsuit in January asking that it be relieved of obligations todefend or pay for a civil lawsuit filed against Penn State in thefirst suit on the Sandusky matter. The PMA suit seeks a declaratoryjudgment releasing the company from having to pay costs to defendPenn State in a suit by John Doe A.