The black segregation scenario would not be covered as a direct result of the civil rights movement, but I’m sure it was covered and paid out prior to the movement. Now there is specific wording excluding civil rights breaches.

Most insurance companies would not exclude this as a frivilous lawsuit just to avoid getting sued by the school for doing so.

But, when we allow a company to defend us, we give up the right to defend outselves. This keeps the control in the hands of the company. As an example, my company recently paid $50,000 on a 3mph no-injury claim to avoid a lawsuit. If I had my say, I’d have paid the claimant no more than $1,000 and would have spent any amount to defend because its the right thing to do. As the defendent I feel pretty strongly about that – pretty emotional. That’s exactly what insurance companies seek to avoid. If they go around defending what’s right all the time, gone would be the frivilous lawsuit, but the companies would not enjoy their high profits.

So, if the school gives its right to defend to the insurance company, but then refuses to abide by the company’s determination (let SAGE meet, for example) then they would have to be penalized in some way specified in the policy. Some likely outcomes are the insurance company paying for the initial suit but not the appeal, or the company paying a percentage or paying what they would have paid had the insured listened to them, but the school picking up the rest.

So, I would guess that she’s either not forthcoming about sharing the expense of defense, or the school district is self insured or Fitch is right.

One thing, companies do not take kindly to comments like the one made by Barbara Olsen, and I’d be surprised if they had the same carrier next year.

I was homeschooled because the school refused to respond effectively to constant bullying, which was not even gay-related and went on for years. Had it not been for that option I would have had to drop out of high school.