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Thread: Michigan State Settlement

  1. #1
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    Default Michigan State Settlement

    Michigan State has just agreed to settle its sexual abuse charges with its 200 +
    Victims for $500 million.
    Wish we had that change, lol

    Geaux Cajuns


  2. #2
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    CajunEXPRESS is offline Ragin Cajuns of Louisiana Ragin' Cajuns Greatest Fan Ever
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    Default Re: Michigan State Settlement

    That's about three and a half years of our entire operating budget. Probably more than the annual ULS budget.


  3. #3
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    Default Re: Michigan State Settlement

    Quote Originally Posted by CajunEXPRESS View Post
    That's about three and a half years of our entire operating budget. Probably more than the annual ULS budget.
    I would think that there may be some insurance money involved in that settlement.

  4. #4
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    Default Re: Michigan State Settlement

    Insurance policies usually exclude criminal activity. Covering up criminal activity is a crime.


  5. #5
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    Default Re: Michigan State Settlement

    Quote Originally Posted by CajunEXPRESS View Post
    Insurance policies usually exclude criminal activity. Covering up criminal activity is a crime.
    Insurance may not cover the criminal, but may cover the negligence of the university associated with the claims. These issues are never open and shut and in settlement cases, it is possible that insurance takes the position that contributing to a good settlement to avoid outside exposures (judgment values and defense costs) is the best business decision. Insurance companies do not like exposures to outside risks and often times contribute much more than you would believe over an exclusion not to have a court decide whether to apply the exclusion to the detriment of the victims in cases like this. I could be wrong, but I do believe to some extent insurance may have been in play.

  6. #6
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    Default Re: Michigan State Settlement

    The negligence, yes. The actual cover up no.

    I had a claim I settled 150k for a burned down building on a family home owner liability for vandalism by the insured son at a property not owned by the policyholder. The kid set an exterior condenser on fire. So we paid for everything except the condenser. The logic, everything except the condenser was collateral damage. The kids didn't intend to burn the building down.


  7. #7
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    Default Re: Michigan State Settlement

    There is a good chance that someone at the university had sense enough to buy a blanket liability policy for catastophic coverage even if they had to purchase reinsurance from the big boys. They have also paid a pretty penny for it.


  8. #8
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    Default Re: Michigan State Settlement

    Quote Originally Posted by CajunPride View Post
    There is a good chance that someone at the university had sense enough to buy a blanket liability policy for catastophic coverage even if they had to purchase reinsurance from the big boys. They have also paid a pretty penny for it.
    And their rates (and everybody elses) just went up.

  9. #9
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    Default Re: Michigan State Settlement

    And it is possible that no one could predict a black swan event like this for 500 Mill. They could be capped at say 50 or 100mill. Big 10 opponents would love this.


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