State Farm Win May Entice More Insurers To Defy Settlements

Law360, New York (March 6, 2013, 8:18 PM EST) -- By letting State Farm Fire and Casualty Co. challenge a $4.9 million settlement in a junk fax suit the insurer didn't defend, an Illinois appeals court has opened the door for more carriers to fight coverage of approved class action deals and pushed judges to raise their scrutiny of settlements billed to insurers, attorneys say.

Tossing a lower court decision last week, the appeals court gave State Farm a chance to protest the underlying settlement at an evidentiary hearing, even though the insurer brought its criticisms...
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