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March 5, 2013

Penn State sues insurance company, says it failed to cover Sandusky victims’ claims

Penn State is suing one of its insurance providers, claiming the company failed to cover the university against claims by 30 men who have come forward saying Jerry Sandusky abused them.

Penn State is suing one of its insurance providers, claiming the company failed to cover the university against claims by 30 men who have come forward saying Jerry Sandusky abused them.

The university filed the suit against the Pennsylvania Manufacturers’ Association Insurance Co. Tuesday in Centre County Court. Penn State is suing over breach of contract, anticipatory breach of contract and bad faith.

The lawsuit provides confirmation of the number of men who say Sandusky abused them. Two of them have come forward this year.

Penn State has hired a mediator, attorney Kenneth Feinberg, to negotiate a settlement with the individuals. Feinberg has said settlements may be reached by the end of this month.

In its suit, the university said PMA failed to provide coverage Penn State has paid for annually the past 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,” attorneys for the university wrote in the lawsuit.

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