Penn State defends rights and files suit against insurer
UNIVERSITY PARK, Pa. -- Penn State today (Feb. 15) filed a lawsuit in the Court of Common Pleas of Centre County against its primary general liability insurer, Pennsylvania Manufacturers' Association (PMA) Insurance Co.
The policies provide a legal defense and coverage of a lawsuit filed against the University regarding the alleged misconduct of Jerry Sandusky. PMA filed a lawsuit Jan. 31 in Philadelphia asking the court to excuse it of obligations regarding its duty to defend and to pay for a civil lawsuit filed against the University in relation to the Sandusky matter.
"Despite substantial insurance premiums paid by the University to PMA over decades, PMA has refused to provide the coverage for which the University is entitled," said David Gray, Penn State's senior vice president for finance and business. "We are extremely disappointed that rather than act in good faith with its insured, PMA instead chose to file an anticipatory lawsuit against us."
The lawsuit the University filed today seeks to enforce its rights under its PMA policies and is in sharp contrast to PMA's tactical action. To see a copy of the lawsuit filed in Centre County against PMA, visit http://www.psu.edu/ur/2012/lawsuit.pdf online.
"We believe that PMA's lawsuit is without merit and we are defending our rights under our insurance policies," said Gray.
Penn State has paid substantial premiums to PMA over the last 60 years for insurance coverage.