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  Spokane Diocese, Two Insurance Companies Settle

By John K. Wiley
The Associated Press, carried in The News Tribune
April 21, 2006

http://www.thenewstribune.com/news/northwest/story/5679394p-5091924c.html

Spokane – The Roman Catholic Diocese of Spokane has reached settlements totaling $4.25 million with two of its insurance carriers in a dispute over coverage of sex abuse claims, Bishop William Skylstad said Thursday.

It is the second time in less than a month that companies that issued policies to the diocese have agreed to settle rather than go to trial. With a proposed $5.25 million settlement offer from the diocese's main insurer, more than $9.5 million is available for paying victims of sexual abuse by clergy, Skylstad said.

The offers must be approved by federal bankruptcy and district court judges.

The diocese filed for Chapter 11 bankruptcy protection in 2004 because of sex abuse claims and has offered to settle the claims of 75 victims for $45.7 million. More than 100 other claims have been filed since.

The diocese is reviewing "claims of proof" filed by claimants not covered by the so-called "universal settlement," but no sum has been attached to their claims.

"The reason we filed Chapter 11 was to make sure all the victims are treated fairly," Skylstad said. "They're not being left out in the cold in any way."

He said church officials are working to find ways to pay the claims, but there are no plans to sell church assets.

"We have no intention of selling parishes," Skylstad said. "We don't want to get into a situation that will be above our means."

Under the latest settlement proposal, Indiana Insurance Co. will pay the diocese $2.75 million for policies issued between 1977-79 and Aetna Insurance Co. will pay $1.5 million to settle claims for a policy issued in 1981.

 
 

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