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Penn State Financially Prepared For Lawsuits

penn-state-logoPenn State President Rodney Ericson says the university has adequate insurance coverage to pay for any lawsuits resulting from the child sex abuse scandal.

He says it has general liability coverage and its directors and officers are also insured, and it will not use student tuition, taxpayer dollars or philanthropic donations to pay for the suits.

One carrier, Pennsylvania Manufacturers’ Association Insurance Company of Blue Bell, has already said it won’t pay because the policy was not in effect at the time the abuse took place and it specifically excludes intentional acts.

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