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If an oil filter fails it generally doesn't wipe out an engine...the filter is bypassed and the engine just uses unfiltered oil. If anything it shortens the life of an engine, but failure is a possibility. There was a period in time where the small block chevy didn't have an oil filter, and the filter was added for obvious reasons. I'm sure if an engine is damaged Fram would get their large legal team together and blame it on something else.
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