Generic Parts Dealer Hits Back.(Brief Article)(Statistical Data Included)

National Underwriter Property & Casualty-Risk & Benefits Management, August, 2000 by CONVEY, MARYCHRISTINE

The decision by State Farm and other auto insurers to allow only original equipment manufacturer parts in car repairs nationwide after State Farm lost a $1.2 billion lawsuit in Illinois last October challenging the use of non-OEM replacements has prompted a bold legal counterattack by a struggling generic parts dealer in California.

The plaintiffs in the Illinois suit against Bloomington, Ill.-based State Farm Mutual Automobile Insurance Company based their winning case in part on the contention that generic parts are inferior to their OEM alternatives. After the verdict, State Farm and a number of other large insurers suspended the use of non-OEM parts, which has reportedly cut seriously into the sales of generic alternatives. Scot Hansen, owner of...

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