Insurer rejects liability claim of man accused of sexual assault at UI frat house

An insurance company is asking a federal judge to weigh in 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 U.S. District Court for the Southern District of Iowa, seeking a declaratory judgment that will determine what coverage, if any, should be afforded 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 made a video recording of the act after she became intoxicated at their Iowa City fraternity house in 2020.

The lawsuit also named as defendants the Phi Gamma Delta fraternity chapter at UI that's commonly known as Fiji, and a fraternity brother who allegedly assisted in distributing the video recording to others.

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

Steffen has filed a counterclaim against Solberg, alleging she has defamed him by falsely accusing him of sexual abuse and has "injured his good name (and) exposed him to public hatred and contempt." The matter is scheduled to go to trial Nov. 5.

In addition to the civil case, Steffen is expected to go to trial in early December on a criminal charge of first-degree harassment, an aggravated misdemeanor.

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

According to the new court filings by 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 on Aug. 26, 2024, almost four years after the alleged sexual assault, Steffen filed a claim for personal-liability coverage related to Solberg's claims. Allied says it investigated and then rejected the claim.

The lawsuit alleges the policy doesn't cover damages that result from injuries "caused by or resulting from 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 that arise from "sexual molestation, corporal punishment, physical or mental abuse, or harassment, including sexual harassment, whether actual, alleged or threatened."

The company states that it has a reasonable basis to deny the family's insurance claim "because Steffen failed to satisfy all of the conditions precedent for coverage."

A hearing on the matter has yet to be scheduled. Attorneys for Steffen have yet to file a response and were not available for comment Monday.