State Farm Settles Lawsuit Over Coverage Disclosure.
State Farm will also have to provide policyholders with additional uninsured/underinsured coverage at no extra cost, according to the settlement.
State Farm in 1998 was the No. 1 auto insurer in Texas, which is the second-largest auto market in the United States, according to A.M. Best Co. data. State Farm Group had a 24.7% market share in the state, up from 22.6% in 1997.
State Farm's troubles began when it denied coverage for claims involving underinsured/uninsured motorists even though the Texas Supreme Court issued a decision requiring payment of such claims. State Farm is notifying all current and former policyholders who could be affected by the settlement. Final approval of the settlement is pending a fairness hearing to be held Feb. 25.
State Farm was also hit with a $1.19 billion verdict over its use of aftermarket auto parts in October.
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|Comment:||State Farm Settles Lawsuit Over Coverage Disclosure.|
|Article Type:||Brief Article|
|Date:||Jan 1, 2000|
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