State Farm Can't Dodge Suit Over Life Insurance Costs

Law360 (August 20, 2019, 7:29 PM EDT) -- State Farm must face claims it violated its life insurance policy by calculating the cost of insurance using factors not listed in the policy, a California federal judge ruled Monday, finding the language in the policy is "ambiguous," meaning the contract must be construed in favor of the insured.

The dispute centers on the policy's language — in particular, a line in which State Farm says rates are "based on" the insured's age, sex and applicable class rate. Life insurance policyholder Elizabeth Bally claims that language indicates State Farm can use only those factors in setting its rates, while State Farm...

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