The case is being sent back down to lower courts for deliberation after the Missouri Supreme Court found that Geico should have a chance to defend itself against the claims.
The case law on this topic is divergent, a trend that will likely continue with different courts applying different interpretations of insurance policies.
When multiple lawsuits are filed and policy limits will be insufficient to settle all the claims or pay for all potential judgments, unique questions arise.
The 'loophole' allowed the auto insurer, which has raised rates 40% this year, to bypass the state insurance commissioner in implementing rate increases.
State Farm has filed suit against several chiropractors and medical providers claiming they have perpetuated fraud for the last 8 years, costing policyholders millions of dollars.