Illinois State Bar Association Mutual Insurance Company v. Law Office of Tuzzolino and Terpinas

Two attorneys practiced together in one firm; one attorney was disbarred on consent. Two years prior, on behalf of firm, that attorney had completed and signed form for renewal of legal malpractice coverage, and answered "no" to question whether any member of firm was aware of circumstances which might give rise to claim not yet reported.Section 154 of Illinois Insurance Code allows complete rescission of an insurance policy in its entirety for a material misrepresentation on the written application, where misrepresentation materially affects the acceptance of risk by insurer and thus goes to contract formation. "Innocent insured" doctrine is not applicable in this case, and Insurance Code governs as an expression of public policy. (GARMAN, THOMAS, KARMEIER, BURKE, and THEIS, concurring; KILBRIDE, dissenting.)