Posted On: September 13, 2004, 6:16 pm CDT

Posted By: malcontrent

Insurers appeal this decision at their peril. When State Farm defrauded its customers, the victims included every secondary carrier that must make up the difference. First-party carriers (UM, UIM, collision, etc.) pay when a liability carrier creates an oasis in the middle of the industry where the only rules are internal ones. If State Farm is put on a short leash, it cannot continue to undermine the underwriting assumptions made by the rest of the industry. $9 million is a lot less than State Farm profited by foisting losses on secondary carriers that are now improperly supporting this petition.