Church Sex Abuse Settlement Raises Coverage Issues

According to the July 19, 2007 L.A. Times, the Archdiocese's insurers will pay $227 million of the $660 million sexual abuse settlement.  Amazing.  If the policies were subject to standard "occurrence" language and intentional act limitations it would seem that several bars to coverage might apply.  Clearly, the acts were intentional.  The injuries would also be "expected", if not intended.  Settling insurers were undoubtedly concerned about a policyholder-friendly court ignoring fundamental restrictions on coverage.