An insurance company has paid Swissvale $175,000 to settle claims the company should have covered more than $840,000 stolen by a former official.

Penn National Insurance Co. had fought Swissvale's efforts to make it cover $841,726 that former borough manager Tom Esposito stole during an 11-year period. The insurance company tried to deny the borough's claims after investigators discovered that council members signed blank checks for Esposito.

He is serving 34 1/2 to 69 months in a halfway house and is also paying about $37 a month in restitution.

Swissvale sued Penn National, claiming the insurer breached its contract, acted in bad faith and misrepresented theft policies.

Christopher Markley, a Penn National spokesman, declined comment.