3rd Circ. Affirms Youth Smokers Insurance Rate Ruling

Law360, New York (June 30, 2009, 12:00 AM EDT) -- A federal appeals court has upheld a lower court ruling dismissing a putative class action filed against State Farm Insurance Co. over its practice of charging the same life insurance premiums to nonsmoking juveniles as it does to those who smoke.

In an unpublished opinion issued Friday in the U.S. Court of Appeals for the Third Circuit, a three-judge panel decided that the district court had correctly dismissed Dr. Mary L. Alleman's breach of contract claim.

The appeals court found that State Farm's policy language stated...
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