Priest Sex Abuse Settlement Not Covered: Interstate

Law360, New York (July 6, 2009, 12:00 AM EDT) -- The Interstate Fire & Casualty Co. Inc. filed a lawsuit Thursday saying that it bears no responsibility to pay for portions of settlements that the Roman Catholic Diocese of Phoenix reached with former parishioners alleging sexual abuse by priests.

In the lawsuit, filed Thursday in the U.S. District Court for the District of Arizona, the insurance company said that it should not have to cover any of the Phoenix Diocese's settlement costs because the excess liability indemnity coverage only covers accidental personal injury and mental anguish....
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