As Larry Nassar victims push for reforms at Michigan State, insurers could be an ally
EAST LANSING – A day after a $500 million settlement was announced between Michigan State University and 332 of Larry Nassar’s victims, questions remain about where MSU will get the money and what, if any, impact the agreement will have on reforms on campus.
The university has no timeline for determining how much of the settlement will be covered by its insurance or how it will pay for its portion, MSU spokeswoman Emily Guerrant said. She added that the university hopes its insurance providers, who are aware of the settlement and were part of the mediation process, will “honor” the insurance policies. Insurance experts said the university’s out-of-pocket costs could reach the tens of millions.
Guerrant declined to comment the possibility of litigation with its insurance providers, including United Educators. MSU has paid the law firm Latham & Watkins at least $2.5 million to handle the insurance aspect of the lawsuits, records show.
Wednesday’s settlement announcement made national headlines, both for the amount and because the scandal has been imprinted on the minds of people across the nation since Nassar’s January sentencing hearings on sexual assault charges. Those hearings, in Ingham and Eaton counties, included victim-impact statements from 204 women and girls, many of whom criticized the institutions that failed to protect them from the serial predator, including MSU and USA Gymnastics.
Read more: https://www.lansingstatejournal.com/story/news/local/2018/05/17/michigan-state-reforms-larry-nassar-settlement/618795002/
