The Diocese of Gallup’s assets are “virtually non-existent” and insurance coverage is “extremely limited” for settling the diocese’s chapter 11 bankruptcy case, an attorney for an insurance company said in court records, the Albuquerque (N.M.) Journal reported today. At least 17 of the 57 sexual abuse claims filed in the case predate 1965, when the Diocese of Gallup had no insurance coverage, attorneys said in motions. The company that insured the diocese from 1965 to 1977, Home Insurance Co., is insolvent and went into liquidation proceedings in 2003. The 25 sexual abuse claims that date to that period are now covered by New Mexico Property and Casualty Guaranty Association, which was created by New Mexico state law in 1978 to cover insurance policies issued by defunct companies. But by state law, claims against the Guaranty Association are capped at $100,000 each, said John Franchini, the state’s insurance superintendent. Meanwhile, legal and professional costs in the bankruptcy case have mounted to more than $2.6 million through June 30, court records show. Read more.
“Diocese and Religious Order Bankruptcies” will be a featured session at this year’s Winter Leadership Conference, happening December 3-5 at the Arizona Biltmore in Phoenix, Arizona. For more information and to register, click here.
