Penn State’s Insurance Company Won’t Pay Sandusky Claims

Penn State’s insurance company has decided in the wake of the scandal and recent findings regarding it that they will not pay out any claims made in regards to abuse that occurred at the university.

Penn State’s insurance company, Pennsylvania Manufacturers’ Association Insurance, filed a memo earlier this week with a state court indicating that reports and investigations into convicted serial child molester Jerry Sandusky were made as early as 1998, 15 years ago.

According to Penn State’s insurance company, the university failed to report this material information to the company when providing information for risk assessment and subsequent analysis of risk.

While Jerry Sandusky was both employed by Penn State at the time the abuse occurred as well as committing many of the acts on university grounds, Penn State’s insurance company says the actions were specifically not covered under policies obtained by the institution.

The memo comes on the heels of a statement by lawyers for Victim 2 in the case, who plans to sue Penn State because of the abuse he was subject to at Sandusky’s hands.

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Attorneys for the victim, who has not been named in press, released a statement earlier this week about pending litigation:

“Our client has to live the rest of his life not only dealing with the effects of Sandusky’s childhood sexual abuse, but also with the knowledge that many powerful adults, including those at the highest levels of Penn State, put their own interests and the interests of a child predator above their legal obligations to protect him.”

Per the statement, Victim 2 suffered “extensive sexual abuse over many years both before and after the 2001 incident Michael McQueary witnessed.” Penn State’s insurance company isn’t the only one to distance itself from the abuse scandal this week, as State Farm announced it was pulling ads from the embattled school’s games and will be “reviewing its connection” to the university.