California Diocese Sues Insurers Over Child Sex Abuse Liability

CNA Financial Corp. and Allianz SE insurance units must pay legal defense costs in childhood sexual abuse lawsuits against a California Catholic diocese, a federal lawsuit said.

The excess policies issued by Allianz Underwriters Insurance Co. and Continental Casualty Co. don’t cap the annual liability coverage available for sexual molestation claims, the Roman Catholic Bishop of Orange said in a complaint filed Wednesday in the US District Court for the Central District of California.

The case adds to the brewing legal battles between dioceses and insurance carriers over the high costs of a wave of sexual abuse litigation against Catholic ...