State Farm Wins Insurance Dispute Over Community College Suit

A State Farm Mutual Automobile Insurance Co. unit can dodge legal defense costs in a suit against board members of an Illinois community college that was covered by another insurer’s primary policy, a federal appeals court ruled.

The primary insurer, Great American Insurance Co.—a unit of American Financial Group Inc.—sued State Farm Fire and Casualty Co. in 2022 over the defense costs, arguing the excess insurer had the duty to defend at least one of the board members.

But State Farm didn’t owe coverage under the terms of its excess policy because Great American’s policy covered the entirety of ...