Aspen Claims Service

$650M Settlement Reached By Insurer And Boy Scouts Of America

 Wednesday, April 21, 2021

 Insurance Business

After years of legal dispute, The Hartford has entered into a settlement agreement and release with the Boy Scouts of America (BSA), wherein the insurer would pay $650 million (before tax) for sexual abuse claims against the BSA associated with policies mainly issued in the 1970s.

It is hoped that the settlement will receive court approval in the third quarter of 2021.

The agreement, which came to be following ‘extensive negotiations,’ outlines that in exchange for The Hartford’s payment the BSA and its local councils will fully release the insurer from any more obligation under policies it had issued to the BSA and its local councils, a release said.

This development comes after the BSA filed for Chapter 11 bankruptcy, and it becomes effective once certain conditions are met.