Opposing insurers challenge proposed BSA reorganization plan

By RANDALL CHASE
Associated Press

DOVER, Del. (AP) — Insurance companies challenging the Boy Scouts of America’s bankruptcy plan say it violates their contractual defense rights under policies they issued. They also say the reorganization plan would result in grossly inflated payments of tens of thousands of sexual abuse claims. Insurers made their arguments Thursday before a Delaware judge who must decide whether to approve a BSA plan to compensate tens of thousands of men who say they were sexually abused as children in Scouting. The plan calls for the Boys Scouts and its 250 local councils, settling insurance companies and others, to contribute some $2.6 billion in cash and property into a settlement trust fund for abuse victims.