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Bad-faith litigation has long been a contentious — and big-dollar — issue for insurers.

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The insured said he reported a theft to State Farm, and the vehicle was deleted from his insurance policy, but the carrier continued to charge him for stacked coverage for 15 years. (Photo: Shutterstock)

A Pennsylvania judge has denied insurance giant State Farm’s bid to end a bad-faith lawsuit that alleges the company refused to reimburse a man who had been charged for stacking insurance coverage even though he owned only one vehicle.

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