Insurer Says It Never Covered Diocese Facing Sex Abuse Suits

Law360, New York (July 27, 2012, 6:45 PM EDT) -- Arrowood Indemnity Co. has sued a Montana Roman Catholic diocese to avoid covering two lawsuits claiming that former priests and nuns physically, sexually and emotionally abused more than a hundred children over five decades, arguing the diocese has no evidence it was ever issued policies.

The Roman Catholic Diocese of Helena is pursuing coverage from 16 insurance companies, some of whom have agreed to provide defense coverage under general liability policies, according to a complaint brought July 19 in a federal court in Montana.

Arrowood insists,...
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