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My husband spoke with the insurance company rep at the Executive Board meeting of his own fraternity over the weekend. The insurance company did not pay at all. Since the fraternity served alcohol to an underage person, they were not in compliance with their insurance policy and, therefore, were not covered. The negotiations began at $18,000 and ended with the girl's family being awarded $150,000. This amount was paid by the fraternity and/or the parents of individual brothers who may have been involved in her acquiring the alcohol. What was paid by the fraternity probably came from their deductible fund.
This should emphasize the fact that just because groups have insurance, it doesn't pay if the group is not in compliance.
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Old Sorority Broad
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