Publications

Founders Insurance Company v. Munoz

Illinois Supreme Court
Civil Court
Insurance
Citation
Case Number: 
Nos. 108605, 108612 Cons.
Decision Date: 
Thursday, May 20, 2010
District: 
1st Dist.
Division/County: 
Cook Co.
Holding: 
Appellate court affirmed in part and reversed in part.
Justice: 
FITZGERALD
Court considered validity of auto policy exclusion that precludes liability coverage when person driving the vehicle does not have a "reasonable belief" of being entitled to do so; trial courts had held coverage exclusion applicable to drivers without valid drivers license. Reasonable belief exclusion applies equally to named insured and anyone using the vehicle with the insured's permission; the average, ordinary reasonable person would understand that the exclusion applies to unlicensed drivers. Exclusion does not violate Illinois public policy. Auto insurers may limit their risk by excluding insureds and permissive users who lack a valid drivers license.