PENNSYLVANIA MANUFACTURER’S ASSOCIATION, PENN STATE’S INSURER SEEKS TO DENY COVERAGE

Penn State’s legal battles continued Wednesday with the university’s primary general liability insurer filing a motion claiming coverage should be denied because the administration failed to disclose what it knew about former coach Jerry Sandusky’s behavior, according to legal documents.

The motion, filed in common pleas court by the Pennsylvania Manufacturer’s Association, says Penn State did not provide it with information relevant to the insurable risk the association assumed. The association has already sued Penn State over the coverage of one of Sandusky’s victims’ claims against the university, filed in November 2011.

The association has insured Penn State under general liability policies since 1976.

“It would be unlawful and contradictory to public policy to require PMA to provide coverage to PSU under any policy issued to PSU after May 1998 with respect to PSU’s concealment of Sandusky’s sexually abusive conduct … and failure to take appropriate action to prevent Sandusky from molesting minors,” the motion read.

The motion comes days after former Penn State President Graham Spanier denied a role in a university cover-up of Sandusky’s actions. Spanier has not been criminally charged in the case. However, an investigation by ex-FBI chief Louis Freeh concluded that he helped university officials conceal allegations of sexual abuse against the former assistant football coach.