University Can't Shake Rescission Claim in Sexual Abuse Coverage Action

LOS ANGELES — A federal judge has denied the University of Southern California’s bid to dismiss an insurer's rescission claim in a coverage action involving sexual abuse claims levied against the university and its campus gynecologist, finding the insurer adequately alleged USC failed to disclose material information concerning the allegations on its application.

In a Jan. 21 order, Judge Dean D. Pregerson of the U.S. District Court for the Southern District of California found it is plausible that USC deviated from its practice of providing updated incident reports because it knew Ironshore Specialty Insurance Co. would deny coverage if such …