Safeway insureds were in auto accident with another driver who was driving a rental car; that driver declined the rental car company's supplemental liability insurance, and relied on his own insurance which had $20,000 and $40,000 limits. Safeway insureds recovered $40,000 policy limits from other drivers insurer, and then claimed underinsured motorist coverage and demanded arbitration of their claims under Safeway policy. Safeway's policy is triggered; its underinsured motorist provision applies before rental car's liability under financial responsibility statute. Thus, Safeway is obligated to comply with its policy's process to handle underinsured motorist claims, which is by arbitration, if insured and insurer do not reach agreement. (DELORT and CUNNINGHAM, concurring.)
Illinois Appellate Court
Civil Court
Insurance