Insurer Beats California Diocese on Payment Limit for Abuse Deal

A California federal judge sided with a Markel Group Inc. insurance unit in a dispute with a Catholic diocese over coverage limits for a settlement with a survivor who alleged sexual abuse.

A provision in the 1979-1980 policy issued by Evanston Insurance Co.'s predecessor imposed a $4 million annual aggregate limit on general liability claims, Judge Monica Ramirez Almadani of the US District Court for the Central District of California said in a Tuesday order. She dismissed the Roman Catholic Bishop of Orange’s first counterclaim against Evanston, which, like the insurer’s complaint, sought declaratory judgment on the annual cap.

The ...