State Farm Ducks Policyholder Suit Over In-House Counsel

Law360, New York (November 30, 2012, 1:48 PM ET) -- An Indiana federal judge on Thursday tossed a putative class action accusing State Farm Mutual Automobile Insurance Co. of failing to inform policyholders that the insurer uses in-house counsel rather than outside attorneys to defend them in third-party litigation, ruling State Farm had no such legal obligation.

U.S. District Judge James T. Moody said that even though an Indiana Supreme Court ruling from 1999 suggests that the state's insurance commissioner should consider requiring insurers to provide more explicit notice that provided lawyers may be in-house counsel,...
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