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Michigan State sues insurance companies over sexual assault claims

Posted at 8:52 AM, Jul 27, 2018
and last updated 2018-07-27 08:52:05-04

Michigan State University is suing all of its insurance carriers, claiming they are failing to honor their policies. A statement released by the university Thursday evening says the lawsuit is regarding coverage for sexual assault claims.

Michigan State has agreed to settle lawsuits filed by Larry Nassar's survivors for $500 million. The amount going to each individual survivor depends on when and how they were abused by the former gymnastics doctor.

The university plans to make the initial payment of $425 million through bonds. The remaining $75 million will be set aside for future claims. Interim President John Engler has said he wasn't sure how much of the settlement insurance would cover.

MSU general counsel Robert Young released the following statement about the lawsuit:

 

“We are suing our carriers, including our largest carrier United Educators, for failing to honor their policies. It is disappointing and unfortunate we have to go to court on this matter, but we are hopeful this lawsuit will bring us to speedy resolution and that the insurance companies will honor their contractual obligations.”

 

FOX 47 and fox47news.com will keep you updated on the lawsuit.