Thounsavath v. State Farm Mutual Automobile Insurance Co.

(Court opinion corrected 7/10/17.) Plaintiff filed a complaint for declaratory judgment against Defendant, State Farm Mutual Automobile Insurance Company. Plaintiff sought a declaration that, as applied to her, the driver exclusion endorsement in the automobile liability policies issued to her by State Farm violated the Illinois Insurance Code and the public policy of Illinois. Court granted summary judgment for Plaintiff and Defendant appealed. In general, named driver exclusions in automobile liability insurance policies are permitted in Illinois. A named driver exclusion in an insured’s policy that bars liability, uninsured or underinsured coverage for the named insured, however, violates Illinois’s mandatory insurance requirements and Illinois public policy. Therefore, the named driver exclusion endorsement in the Plaintiff’s automobile liability policies was not enforceable against the Plaintiff, as the named insured, and summary judgment was proper.