The same is true for Washington State--though it is couched in slightly different language--which states that it is against public policy for insurers to underwrite criminal acts. I can understand the insurers being on the hook though, if the organization (the church or the diocese) was negligent in dealing with a known or suspected molester. The issue the church is then liable for is the negligence--not the molestation.

It would be like a hospital employing an "angel of mercy." Murder isn't and shouldn't be insurable. But a hospital has a duty to to know who they hire and give access to patients, to trust with the welfare of their patients, etc. Employing someone who later turns out to be a killer of the sick and elderly might be negligent. A person's family could sue the hospital for negligence--but not for intentional murder.