State Farm won’t pay anything for Jerry Sandusky defense, civil suit claims

For the CDTJanuary 16, 2013 

— State Farm Fire and Casualty Co. will not be paying for Jerry Sandusky’s defense or awards from any civil suits arising from his criminal activity.

Sandusky and his wife, Dottie, whose name also is on the homeowners policy, withdrew claims against the insurance company, a court document stated.

The parties entered into a consent decree that U.S. Middle District Judge Yvette Kane signed Tuesday. It eliminates any obligations on the part of State Farm.

State Farm had sought a court declaration that the homeowners policy did not provide coverage for Sandusky’s defense in the criminal case, in which he has been convicted on 45 counts and is serving a prison sentence for 30 to 60 years.

The insurance company also had rejected Sandusky’s claims for payment of his defense in two civil cases filed in Philadelphia.

State Farm contended Sandusky’s homeowner’s policy provided only limited liability coverage and it excluded acts intentionally caused by or the result of any willful or malicious conduct by the policyholder.

While the consent order ends that case, still pending is a similar suit brought by Federal Insurance Co. with which The Second Mile had a policy. Sandusky founded that charity.

Federal contends the sexual molestation of children does not fall under the scope of Sandusky’s various positions when he was associated with The Second Mile, and such activity is counter to that charity’s mission.

It is Sandusky’s position the policy with Federal provides him coverage through a final non-appeal judgment of his conviction. He is appealing his conviction and charges he abused 10 boys over a 15-year period.

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