A federal judge in Pennsylvania has ruled Federal Insurance Co.has no duty to defend convicted child molester and sex abuser JerrySandusky.

The insurer, part of the Chubb Group of Insurance Cos., hadissued directors' and officers' and employment practices liabilitycoverage to The Second Mile, an organization Sandusky founded forunderprivileged children.

The former Penn State University assistant football coach facescivil litigation from his victims and is appealing his June 2012conviction on 45 of 48 counts related to the sexual abuse of boys,many of whom he met at The Second Mile.

Sandusky was sentenced to 30-60 years in prison.

According to the ruling by U.S. District Judge Yvette Kane, “Thefact that Sandusky met his victims through The Second Mile—or evensexually abused victims 'during the course of activities of SecondMile'—does not change the fact that his sexual abuse of childrenwas personal in nature, and performed in his individualcapacity.”

Therefore, as Federal Insurance contended in its filing seekingdeclaratory judgment, Sandusky's actions were outside the scope ofhis insured capacity under the policies as an executive oremployee.

In December 2011, shortly after he was indicted on relatedcharges, Sandusky informed Federal he would seek coverage fordefense of the civil and criminal complaints under the D&O andEPL policy.

Federal advanced Sandusky's attorney $125,000, subject to areservation of rights to deny coverage. The insurer then filed toget a ruling that it was not obligated to provide a defense.

Sandusky's attorney attempted to argue the policy languagedefining “insured capacity” was ambiguous. Judge Kane disagrees,saying the court “find the policy language regarding “insuredcapacity” to be unambiguous in limiting coverage to those actsconducted by an insured person acting in his or her capacity assuch.”

Kane had previosuly ruled Federal Insurance had no duty to indemnify Sandusky, but the duty-to-defendquestion remained.

In January, Sandusky and his homeowners' insurer, State Farm,settled a lawsuit brought by the insurer to similarly have ajudge declare the company has no obligation to defend or indemnifySandusky, who had looked to the policy for coverage. Kane alsooversaw that case.