Standard Mutual Insurance Company v. Lay

Insured real estate agency faxed ad as to property for sale in violation of Telephone Consumer Protection Act (TCPA), without permission of recipient, and was sued in class action. Court properly granted CGL insurer's motion for summary judgment in declaratory judgment action. Insurer's reservation of rights letter contained disclosures necessary to avoid being estopped from raising policy coverage issues. TCPA's $500 per fax liquidated damages provision is a penalty in the nature of punitive damages, not insurable as a matter of Illinois law and public policy. (STEIGMANN and COOK, concurring.)