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State Farm had for years voluntarily disclosed changes in Ohio law that affected its policyholders’ coverage and premiums. In October 1994, the Ohio Supreme Court declared unenforceable a policy exclusion used by State Farm. The effect of the decision was that State Farm policy holders could achieve significant savings in policy premiums without compromising coverage to themselves and their resident relatives. State Farm decided not to disclose this information in written form to its policyholders. The Court certified the class which is comprised of over 1.4 million policyholders in the State of Ohio.
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