Reuters: U.S.: Insurer sues to keep from paying Penn State abuser's legal bills

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Insurer sues to keep from paying Penn State abuser's legal bills Jul 24th 2012, 16:35 Tweet Share this Email Print Related News NCAA sanctions Penn State for Sandusky scandal 8:11am EDT Penn State hit with unprecedented penalties for Sandusky scandal Mon, Jul 23 2012 Penn State facing severe NCAA sanctions, removes Paterno statue Sun, Jul 22 2012 Penn State could incur steep penalty in probe of unreported crime Thu, Jul 19 2012 Paterno alma mater removes name from sports award Tue, Jul 17 2012 Buildings are seen on the campus of Pennsylvania State University in State College, Pennsylvania July 11, 2012. Credit: Reuters/Eric Thayer WASHINGTON | Tue Jul 24, 2012 12:35pm EDT WASHINGTON (Reuters) - Insurer State Farm said it should be exempt from paying for legal bills arising from former Penn State assistant football coach Jerry Sandusky's child sexual abuse case. State Farm Fire and Casualty Co holds Sandusky's homeowner policy and filed a federal lawsuit last week arguing that the policy does not cover injuries caused by intentional, willful or malicious acts. The State Farm policy provided limited personal liability coverage. Sandusky, 68, was convicted last month on 45 counts of sex abuse involving 10 boys, sometimes at his home in State College, Pennsylvania. State Farm began insuring the home in 1985 for Sandusky and his wife, Dottie, according to the complaint filed in the U.S. District Court for Middle District of Pennsylvania. The company asked that the court declare that the policy did not cover legal costs for his criminal defense or civil lawsuits arising from the case. Federal Insurance Co, which covers the Second Mile, the charity Sandusky founded for at-risk youth in 1977, is making payments for his defense, Sandusky's attorney Brian Osias said last week. The National Collegiate Athletics Association, the governing body of U.S. college sports, fined Pennsylvania State University $60 million on Monday in an unprecedented rebuke for the school's failure to stop Sandusky's sexual abuse. (Reporting by Ian Simpson; Editing by Jackie Frank) Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.

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