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Penn State Announces Legal Action against Insurance Provider

by on February 15, 2012 6:56 PM

Penn State has initiated legal action against one of its key general-liability insurance providers, the university announced Wednesday.

The provider, the Pennsylvania Manufacturers' Association Insurance Co., filed its own lawsuit last month. In it, PMA has sought to be excused from paying for the university's defense in a civil lawsuit. The lawsuit is among numerous civil cases expected to arise from the child sexual abuse alleged to have been committed by Jerry Sandusky, a former university football coach.

Penn State launched legal action Wednesday against PMA "to enforce its rights under its PMA policies," a university news release reads. The university lawsuit is filed in the Centre County Court of Common Pleas.

"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," David Gray, the university senior vice president for finance and business, said in a news release.

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