October 14, 2024
Contact: press@justice4survivors.com, (845) 521-4945
FOR IMMEDIATE RELEASE
LAWSUITS AND COMPLAINTS HIT INSURANCE INDUSTRY FROM ALL ANGLES
NEW YORK, NY – The insurance industry has come under increasing fire for its refusal to make good on contractual obligations to fund claims under the New York State Child Victims Act, with survivors of child sex abuse, Albany lawmakers, religious institutions, and hospitals having all recently taken aim at the industry in a series of lawsuits, regulatory pushes, and advocacy efforts.
Insurance giants like Chubb have established a pattern of ignoring state laws, undermining survivors of child sex abuse, and standing in the way of justice, all in an effort to protect their bottom line. However, the multi-billion dollar industry might not be able to skirt responsibilities much longer. Within the last few months, insurance agencies have been faced with the following lawsuits and complaints:
Child Sex Abuse Survivor Files Independent Lawsuit Against Chubb:
A survivor of child sexual abuse identified as “Jonah Doe” filed a lawsuit against Aetna Insurance Company and Federal Insurance Company – both subsidiaries of insurance giant Chubb, for refusing to settle claims under the Child Victims Act. Jonah alleges that he was sexually abused by a school employee and he sued the former school for negligence. Now, he seeks to hold Chubb accountable for their refusal to meet their coverage obligations to him and the school. The lawsuit, filed in The United States District Court for the Eastern District of New York, is the latest action taken against insurers refusing to pay claims in childhood sexual abuse cases, including cases involving religious institutions, hospitals, school districts, and others.
The New York State Legislators Call on Department of Financial Services to Take Action:
Assemblymember Linda B. Rosenthal and state Senator Brad Hoylman-Sigal asked the state Department of Financial Services (DFS) to investigate allegations that insurance companies are violating the Child Victims Act by refusing to pay out claims in child sex abuse cases. In a letter to DFS Superintendent Adrienne Harris, the legislators called on the agency to address complaints from survivors of childhood sexual abuse that their claims are not being processed by insurers. For months, survivors have raised this critical issue with DFS, but the agency has failed to respond.
The Archdiocese of New York Sues Chubb:
The Archdiocese of New York filed a lawsuit against Chubb for allegedly refusing to pay out victims of sexual abuse cases, going back decades. Cardinal Timothy Dolan, the Archbishop of New York, said in a letter to church members that the insurance company claimed it was not obligated to settle these claims, although the insurance agency has a long history of settling similar claims in the past.
U.S. Open Urged to Drop Chubb as Sponsor:
Child sex abuse survivors, lawmakers, and advocates held a protest and press conference at the start of this year’s U.S. Open to call on the USTA to cut ties with Chubb Insurance and drop the company as a lead sponsor.
Chubb Insurance renewed its official sponsorship of the U.S. Open in September. The United States Tennis Association has a history of failing to protect players from sexual abuse and its continued partnership with Chubb Insurance shows a clear refusal to prioritize safety, accountability, and justice.
Rockefeller University Settles $700 Million in CVA Claims, Insurer Refuses to Honor Coverage
In 2019, Rockefeller University Hospital filed suit against more than a dozen of its insurers for not providing assistance with handling hundreds of abuse claims.
Rockefeller filed the case in New York Supreme Court and accuses several of its insurers — including its primary insurer Chubb — of attempting to dodge coverage as an industry-wide tactic to avoid paying legal fees and damages to sexual abuse survivors.
In early October of 2024, a New York state appeals court upheld a lower court’s previous ruling not to dismiss claims that insurance agencies Chubb, The Travelers Indemnity Co. and Aetna Casualty & Surety Co. acted in bad faith and conducted deceptive trade practices while managing Rockefeller University’s sexual abuse claims. The lawsuit alleges that insurers failed to pay settlements and promptly resolve Child Victims Act claims against the university.
“Chubb’s continued trend of skirting their responsibilities to those they insure is catching up to them in the court of law,” said Dave Catalfamo, Executive Director of the CJCC. “Our coalition will continue to stand with survivors until every insurer is held accountable. It’s long overdue for survivors to receive the compensation they rightfully deserve.”
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The Coalition for Just and Compassionate Compensation (“CJCC”) is an independent alliance of survivors of child sex abuse, their representatives, and advocates seeking full restitution for survivors of child sex abuse. Among members of the coalition are author and journalist Stephen Jimenez, a survivor of childhood sexual abuse and longtime advocate who helped pass the Child Victims Act (CVA), and attorneys James Marsh, Founding Partner at Marsh Law Firm, Jeff Herman, Founder of Herman Law Firm, and Hillary Nappi, Partner at Hach Rose Schirripa & Cheverie, who represent thousands of sexual abuse survivors in litigation against public and private entities.