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No Generic Parts for Now, State Farm Says

Bloomberg News

State Farm Mutual Automobile Insurance Co. said it will temporarily stop requiring the use of generic parts after a jury deciding an Illinois class action ordered it to pay customers $456 million, saying State Farm broke a pledge to pay for replacement parts of “like kind and quality.” State Farm has defended the less-costly replacements as a way to cut insurance premiums. But it said Thursday that it wants to avoid “customer confusion” that could result from “misinformation” linked to the suit. The company, which is the nation’s leading auto insurer, plans to appeal the verdict reached Monday in Williamson County Circuit Court in Marion. A judge’s ruling is expected as early as today on charges that State Farm defrauded its policyholders.

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