"Lawyers for the Archdiocese of St. Paul and Minneapolis are warning that criminal charges against the corporation could jeopardize insurance coverage that’s being counted on to pay some claims of victims of clergy abuse.The Archdiocese filed for Chapter 11 bankruptcy reorganization in January of this year.
"Archdiocese insurers were already questioning whether they were liable to cover abuse claims.
"Now the insurers’ case is stronger because the charges allege the archdiocese knew about problems and didn’t protect kids, University of Minnesota law professor Christopher Soper told Minnesota Public Radio News. Most insurance policies don’t cover intentional or criminal acts, he said. ..."
"Last November, the archdiocese sued insurance companies covering it from the 1940s through the 1980s in an effort to resolve the carriers’ obligations to cover clergy sexual abuse claims.
"Although the Twin Cities archdiocese wants insurers to contribute to a settlement of claims filed by alleged victims, many have denied claims of have reserved the right to reject claims. The coverage dispute is now part of the archdiocese’s bankruptcy proceedings."