Cardinal Timothy Dolan alleges that Chubb is neglecting its contractual obligations despite receiving billions in premiums from the archdiocese over the years.

In a letter to the Catholic faithful, Cardinal Dolan explained that the archdiocese has already resolved over 500 cases without insurance coverage. However, approximately 1,400 additional cases remain unresolved.

The archdiocese wishes to settle these claims swiftly but says that Chubb is deliberately avoiding its duty to pay.

"It has always been our wish to expeditiously settle all meritorious claims," the archbishop said.

"However, Chubb, for decades our primary insurance company, even though we have paid them over $2 billion in premiums by today's standards, are now attempting to evade their legal and moral contractual obligation to settle covered claims which would bring peace and healing to victim-survivors."

Dolan harshly criticised Chubb. He claimed the company is falsely arguing that the abuse was "expected or intended" by the Catholic Church. Such a claim, if accurate, would nullify insurance coverage.

Dolan called that argument "false" and "outrageous" and said the insurer is merely trying "to protect their bottom line."

The lawsuit, filed under New York's General Business Law, alleges that Chubb's actions amount to deceptive business practice. It claims the company is failing both the archdiocese and abuse survivors.

Child abuse covered up

Chubb responded with a strong rebuttal and put the onus on the Archdiocese of New York.

"The Archdiocese of New York tolerated, concealed and covered up rampant child sexual abuse for decades" Chubb said in a company statement.

The company also accused the archdiocese of withholding financial information regarding what it knew about the abuse.

Chubb alleged that the archdiocese is attempting to "deflect, hide and avoid responsibility" for its actions and protect its financial resources. The insurer argues that the archdiocese has substantial wealth and is unwilling to provide adequate compensation to the victims.

Accident Compensation Corporation (ACC)

In New Zealand, the situation involving sexual abuse claims and compensation differs significantly from that in the US. This is due to the no-fault accident insurance scheme managed by the Accident Compensation Corporation (ACC).

Under ACC, anyone who suffers an injury, including mental injury from sexual abuse or assault, can apply for compensation. Victims of sexual abuse do not need to sue individuals or organisations to receive compensation.

The financial burden of compensating victims would fall largely on ACC, not the Church or its insurers.

Sources

Catholic News Agency

Crux Now

On July, 10, Australia's Royal Commission on Institutional Responses to Child Sexual Abuse ordered Catholic Church Insurance (CCI) to produce the files.

CCI was ordered to provide a list of relevant material by yesterday and the files later in the week.

The royal commission held a special hearing when CCI failed to meet the deadline of a previous summons and produce all requested files.

It has handed over some folders.

The files could show exactly what the Church knew about 63 abusers in its ranks.

Counsel assisting the royal commission, Gail Furness, said the delay in getting the files was causing problems in the commission's work.

She asked royal commission chairman Justice Peter McClellan to make a new order.

Justice McClellan said he was inclined towards making an order setting aside the previous summons and requiring CCI to hand over all files on child sex abuse claims.

Peter Gray, counsel representing CCI, said folders relating to 63 perpetrators about whom the commission had originally sought information could be provided in a week.

These folders would cover claims where there was "or might have been a prior knowledge issue".

Justice McClellan said: "The commission needs the files in order to understand what the history, overall history has been in relation to denial of claims."

It has been previously reported that CCI, which is wholly owned by the Catholic Church and has charity status, has set aside up to A$150 million to settle future child sex abuse claims.

Evidence at previous royal commission hearings has revealed that CCI had a role in capping payments to abuse survivors and in requiring deeds of release so the Church could not be sued.

Sources

• SBS
• ABC
• Image: Talkandroid.com

Mullin said earthquake premiums had more than doubled since the Canterbury quakes, despite insurers offering less cover.

Faced with rocketing insurance premiums, the archdiocese is proposing to scrap natural disaster cover for most of its churches.

Under the proposal, 43 churches and about 60 community halls between Levin and Westport would be financially unprotected if hit by an earthquake or tsunami.

Major buildings, including Sacred Heart Cathedral and St Mary of the Angels church in Wellington, would retain some quake cover, he said.

But other smaller churches, including the centres of many suburban parishes in the Hutt Valley and Wellington, would not be covered.

Source

• Stuff.co.nz
• Image: tripadvisor.com
  

In February the company, formally known as Ansvar, changed its name to ACS (New Zealand) to avoid confusion with its immediate parent company Ansvar Insurance Ltd (Australia).

The plan comes into effect if a "trigger event" occurs - basically, if ACS becomes insolvent. It would allow ACS to have managers instead of liquidators take control if the company became insolvent.

In approving the application Justice Venning said the scheme provided the best opportunity for an "ordered and efficient" management of insurance claims.

"It is inevitable that if a liquidation was to occur, the liquidator would need some time to familiarise themselves with the operation of the company and would proceed on a cautious basis which would likely result in material delays when dealing with claims."

At a meeting on 12 June in which ACS sought creditors' approval of the plan, the financial administrator of the Catholic Diocese in Christchurch, Paddy Beban, asked, "Why the haste?"

There had been a lack of time to consider the material and as late as 8.30pm the night before the meeting additional data had been posted on the company's website, he said.

Reports from KPMG and the Reserve Bank had been released only a few days before.

In its report The Reserve Bank report raised red flags over the fairness to policyholders of a scheme that took longer to settle their claims.

It also raised concerns about the solvency of ACS, highlighted by an independent report by KPMG which indicated a 25 per cent risk of ACS not being able to settle the hundreds of millions of dollars of earthquake claims.

At the meeting Policyholders voted in favour of a contingency scheme put forward by ACS.

On June 30, ACS will be subject to legislated solvency requirements - the Solvency Standard for Non-life Insurance Business in Run-off - which requires a higher solvency buffer than the Companies Act test.

Source

• Stuff.co.nz
• New Zealand Herald
• Business Day
• Image: TV3

Dunedin diocese's general manager Stuart Young said parishioners were ultimately the ones who would bear the costs of increased insurance premiums, brought about by the Christchurch earthquakes.

"It is a tsunami about to hit us. We face a renewal of our policy at the end of the month... we are also in a position where our broker is negotiating with a new [insurance provider]," Mr Young said.

The diocese has about seven heritage churches in the city including St Joseph's Cathedral in city rise, and churches at Port Chalmers and Northeast Valley, with another eight spread around the region.

"We need to be sensible about what risk we take and look at a diocese-wide perspective. In the event of an earthquake we might not have insurance which will allow us to totally rebuild any [damaged] heritage churches," Mr Young said

Source

• Otago Daily Times
• Image: Wikimedia commons

In September 2011, Ansvar Insurance has revealed that it would cease writing earthquake cover in New Zealand. Now it has announced that the existing customers' policies will be cancelled on 31 December 2011, but they will be able to get interim cover through Ansvar Australia while they find a new insurer.

The chairman of the Anglican Insurance Board, Don Baskerville, describes today's announcement as "most inconvenient."

"Times are trying. But not desperate."

He says Ansvar Australia will partially fill the gap.

Source

• IRB
• The Anglican Church in Aotearoa
• Image: DomPost

The original St James Presbyterian Church was built in 1882 and replaced with the current wooden building on Adelaide Rd in the early 1900s opposite Wellington Hospital.

Christchurch diocese financial administrator Paddy Beban says, "Our brick churches will generally be at the higher end of the risk scale and we can anticipate increases."

If the experience of other denominations is anything to go by ,the increases could be in the order of 500%. At St Andrew's Presbyterian Church in Ashburton, for example, the congregation is going to have to come up with about $27,000, due mid-September. It compares to its premium for the previous year of about $5400.

Minister David Brown said the cost would be sustained by the parish in the short-term, but there were concerns about the ongoing cost.

Source

• Ashburton Guardian
• Image: www.liturgy.co.nz