April 16, 2005

Diocese reportedly reaches settlement with major insurer

TUCSON (AZ)
KOLD

TUCSON, Ariz. The Roman Catholic Diocese of Tucson reportedly has reached a seven (m) million dollar settlement with a major insurer to pay for sexual-abuse claims.

The "Arizona Daily Star" reports that Hartford Fire Insurance Company and an affiliated insurer will pay the diocese to buy out seven insurance policies the companies issued to the diocese or that otherwise covered the diocese with liability protection between 1964 and 1981.

The settlement proceeds will be used to pay sex-abuse claims and the insurers will be released from any further liability under the policies.

The settlement would bring to at least ten (m) million dollars the amount the diocese expects to raise to pay claims, including expected proceeds from the planned sale of diocese real-estate assets.

The diocese has asked U-S Bankruptcy Court Judge James Marlar to approve the settlement and to approve an injunction channeling any future claims against Hartford through the diocese bankruptcy case.

Posted by kshaw at April 16, 2005 03:10 PM