Standard Mutual Insurance Company v. Jones

Insurer filed complaint for rescission, alleging that auto policyholders failed to disclose on application that two sons (age 16 and 20) resided with them. Younger son was driving vehicle when he was in auto accident. Court properly found that plain language of Section 154 of Illinois Insurance Code barred insurer from rescinding policy, as policy had been in effect for more than one policy term. Effective date of policy, not discovery of misrepresentation, triggers start of time period for insurer to move to rescind a policy. (KNECHT, concurring; TURNER, specially concurring.)