Insurer denies liability claim by man accused of assault at UI frathouse

(Iowa Capital Dispatch) – An insurance company is asking a federal judge to rule on its refusal to cover the liability claim of a man accused of sexual assault at a University of Iowa fraternity house.

Allied Property and Casualty has filed court papers in the US District Court for the Southern District of Iowa, seeking a declaratory judgment that will determine what coverage, if any, should be provided to Carson Steffen of North Liberty under the terms of his family’s insurance policy.

The filing stems from a 2021 lawsuit filed by Makena Solberg, who identified herself in the petition. She sued Steffen and Jacob Meloan, alleging the two sexually assaulted her and videotaped the act after she got drunk at their Iowa City fraternity house in 2020.

The lawsuit also named as defendants the Phi Gamma Delta fraternity chapter at UI, commonly known as Fiji, and a fraternity brother who allegedly helped distribute the video recording to others.

Mediation and out-of-court settlements have resulted in all suspects, except Steffen, being dismissed from the case.

Steffen has filed a counterclaim against Solberg, claiming that she defamed him by falsely accusing him of sexual abuse and “harmed his reputation (and) exposed him to public hatred and contempt.” The case will go to trial on November 5.

In addition to the civil case, Steffen is expected to appear in court in early December on charges of first-degree harassment, a serious misdemeanor.

According to court records, that charge is based on the allegation that Steffen shared a photo of Solberg having sex with others via Snapchat on the night of the alleged assault.

According to new court filings from Allied Property and Casualty, the company issued a personal liability insurance policy to Carson Steffen’s parents, Douglas and Gretchen Steffen, in 2019, and Carson Steffen was covered under that policy.

The company alleges that Steffen filed a claim for personal liability coverage in connection with Solberg’s claims on August 26, 2024, nearly four years after the alleged assault. Allied says it investigated the claim and subsequently denied it.

The lawsuit claims the policy does not cover damages resulting from injuries “caused by or arising out of an act or omission that is criminal in nature and committed by an insured… regardless of whether the insured is actually charged with or convicted of a crime.” ”

The policy also states that it does not cover injuries or damages resulting from “sexual molestation, corporal punishment, physical or mental abuse or intimidation, including sexual harassment, whether actual, perceived or threatened.”

The company argues that it has a reasonable basis to deny the family’s insurance claim “because Steffen has not met all conditions precedent to coverage.”

A hearing on the matter has yet to be scheduled. Steffen’s attorneys have not yet filed a response and could not be reached for comment Monday.

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