American Family Mutual Insurance Company v. Krop

Insurer filed declaratory judgment complaint seeking declaration that insureds were not entitled to coverage. Insureds filed counterclaim against insurer and a 3rd-party complaint against its agent. Defendants' counterclaim and 3rd-party complaint were not time barred, as cause of action accrued upon denial of coverage. When an insurance agent owes a fiduciary duty to an insured, a cause of action for breach of that duty accrues at the time of the breach, but statute of limitations is subject to tolling by application of the discovery rule. Insureds knew or reasonably should have known of their injury on the date when coverage was denied. (FITZGERALD SMITH and LAVIN, concurring.)