Episode Details

A federal appeals court just handed the LDS Church a major legal win, ruling that its insurance companies must cover massive sexual abuse settlement payouts — a decision that could reshape how insurers handle ambiguous claims. The case stems from abuse allegations against Michael Jensen in West Virginia, where the church settled with victims before trial. When insurers refused to pay, the church took them to court — and after a lower court sided with the insurers, the appeals court reversed course unanimously. Citing Utah law’s “ambiguity in favor of the insured” rule, the judges said unclear policy language must be interpreted to protect the church, forcing insurers to cover costs even when disputes arise over whether abuse counts as one or multiple incidents. The ruling underscores the need for clearer insurance contracts — and delivers a significant legal victory for the church in this high-stakes battle.

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