Penn State sues insurer over Sandusky coverage

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HARRISBURG -- Penn State University alleges in a new lawsuit that its insurance carrier has not been honoring its legal obligation to cover claims related to sexual misconduct by former assistant football coach Jerry Sandusky.

The university said in the 18-page complaint filed in Bellefonte, Centre County, on Tuesday that it has been sued or contacted by 29 claimants but that the Pennsylvania Manufacturers' Association Insurance Company has not provided coverage.

The lawsuit alleges breach of contract and bad faith, and seeks damages and costs.

The filing lists five lawsuits and letters from attorneys for 24 other claimants who have contacted the university related to Sandusky.

The lawsuit said PMA has denied coverage in some cases and failed to issue coverage determinations in others.

Pennsylvania Manufacturers' spokeswoman Diane Nafranowicz said Wednesday the company would not comment.

The lawsuit arises as Penn State is attempting to negotiate settlements with Sandusky's victims and accusers, and university officials were given settlement offers by some of them last month.

A statement by Penn State spokesman David La Torre said the school believes its insurance policies will cover those settlements and costs, and that student tuition, taxpayer money or donations will not be used.

Mr. La Torre said Penn State has paid PMA more than $23 million since 1983.

Sandusky, 69, is serving a 30- to 60-year prison term for sexual abuse of 10 boys, and is pursuing appeals of his 45-count guilty verdict.

Eight young men testified that they had been abused as boys by Sandusky, saying he engaged in conduct that ranged from grooming and manipulation to violent sexual attacks, some of them on Penn State property.

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