Pekin Insurance Company v. Xdata Solutions

Insurer had duty to defend insured, an Indiana corporation, in class action suit for advertising injury, from having sent over 4,000 unsolicited advertisements via telephone fax machine, in violation of Telephone Consumer Protection Act (TCPA). Under Illinois law, advertising injury coverage can include a TCPA claim, and this applies not only to natural persons, but also to entities such as corporations. As there is no Indiana state law on whether there can be coverage for TCPA claim as advertising injury, there is no conflict with Illinois law, and thus Illinois law applies. Insured did not breach "voluntary payments" provision of policy by settling for $2 million, as insurer had rejected tender of defense and insured was potentially at risk of verdict well in excess of $2 million given statute's treble damages provision for willful violations. (HOFFMAN and HALL, concurring.)