HARRISBURG —
Penn State 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 on Tuesday that it has been sued or contacted by
29 claimants, but that the Pennsylvania Manufacturers’ Association Insurance Company has not provided coverage for which the university paid.
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.
It said the school has been a customer of the insurance company for more than 50 years.
“Despite the substantial insurance premiums that Penn State paid PMA over the course of those years, when various individual claimants began to raise claims and file lawsuits against Penn State concerning the alleged sexual misconduct of Sandusky, PMA failed to provide the coverage for which Penn State had bargained and paid,” the school’s attorneys wrote.
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 have been given settlement offers by some of them.
A statement by Penn State spokesman Dave 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.
La Torre said Penn State has paid PMA more than $23 million since 1983.
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