Insurance Law

Senate 1898

Topic: 
Required liability coverage for drivers
(Biss, D-Skokie) increases the required minimum liability insurance policies for drivers as follows: bodily injury or death to any one person from $20,000 to $50,000; bodily injury or death to more than one person from $40,000 to $100,000; and injury or destruction of property of others from $15,000 to $40,000. Scheduled for hearing this Tuesday in Senate Transportation Committee.
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Senate Bill 1636

Topic: 
UM arbitration
(Mulroe, D-Chicago) makes arbitration binding in UM cases regardless of the amount that is awarded. Under current law, UM arbitration is not binding if an award is made more than $50,000 for one person’s injuries or $100,000 for two or more person’s injuries. Scheduled for hearing this Tuesday in Senate Insurance Committee.
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Alshwaiyat v. American Service Insurance Company

Alshwaiyat v. American Service Insurance Company
Illinois Appellate Court
Civil Court
Insurance
Citation
Case Number: 
2013 IL App (1st) 123222
Decision Date: 
Tuesday, February 19, 2013
District: 
1st Dist.
Division/County: 
Cook Co.,1st Div.
Holding: 
Reversed.
Justice: 
ROCHFORD
Plaintiff filed declaratory judgment action, seeking determination that auto insurance policy issued to Plaintiff's employer, a taxi company, provided underinsured motorist coverage for auto accident involving Plaintiff, who was driving taxi, and his deceased wife, a passenger. Language of Section 143a-2 of Insurance Code was modified to reflect a change from a requirement to offer matching UM and UIM coverage to a requirement to provide such coverage. Endorsement insurer which raised liability limits of original policy was issued during term of original policy and was thus a part of original policy, and thus was not a separate insurance policy. Insurer was not required to provide any greater UM or UIM coverage than minimum amounts contained in original policy. (CUNNINGHAM and DELORT, concurring.)

Nat’l Union Fire Ins. Co. of Pittsburgh, Pa. v. American Motorists Ins. Co

Federal 7th Circuit Court
Nat’l Union Fire Ins. Co. of Pittsburgh, Pa. v. American Motorists Ins. Co
Civil Court
Indemnity
Citation
Case Number: 
Nos. 11-2500 & 11-2533 Cons.
Decision Date: 
February 13, 2013
Federal District: 
N.D. Ill., E. Div.
Holding: 
Affirmed
In action by plaintiff-insurance company seeking indemnity from defendant-insurance company for plaintiff-insured’s pay-out of $8.7 million settlement obtained from motorists injured in construction accident, Dist. Ct. did not err in finding that all settling entities, whether insured by defendant or not, should be deemed to have contributed equally to settlement figure where: (1) settlement agreement failed to apportion liability among settling entities; and (2) plaintiff failed to depose lawyers in underlying tort action to find out how they believed presence of several entities contributed to size of settlement. Thus, plaintiff could seek indemnity only for amounts attributable to defendant’s insureds.

SJRCA 7

Topic: 
Eligibility of judges in Cook County
(Cunningham, D-Chicago) requires a judge to have actively practiced law in Illinois for at least ten years before he or she can be elected or appointed an associate or circuit judge in Cook County. To be eligible for either office, a potential judge must have been certified as qualified to be a Judge or Associate Judge by at least five members of the Attorney Registration and Disciplinary Commission. Before a lawyer may run for nomination, election, or retention for any judgeship at any level in Cook County, the prior approval of the ARDC members is required. Retention of a judge will require a two-thirds vote (currently three-fifths). This retention change appears to affect all Illinois judges. Effective upon adoption and applies only to persons seeking election or appointment as a Judge or Associate Judge after the adoption of the Amendment. Just introduced.
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American Zurich Insurance Company v. Wilcox and Christopoulos, L.L.C.

American Zurich Insurance Company v. Wilcox and Christopoulos, L.L.C.
Illinois Appellate Court
Civil Court
Insurance
Citation
Case Number: 
2013 IL App (1st) 120402
Decision Date: 
Thursday, January 17, 2013
District: 
1st Dist.
Division/County: 
Cook Co.,6th Div.
Holding: 
Reversed.
Justice: 
FITZGERALD SMITH
(Court opinion corrected 1/24/13.) Insurer filed declaratory judgment action as to its duty to defend law firm and attorney sued for civil conspiracy to open and operate a restaurant/lounge by illegal means. Policy exclusion for conduct occurring when insured is acting for benefit of a business in which he has a controlling interest applies, so that insurer has no duty to defend law firm or attorney, who was listed as an attorney in firm on day policy was incepted. (LAVIN and EPSTEIN, concurring.)

Ware v. First Specialty Insurance Corporation

Ware v. First Specialty Insurance Corporation
Illinois Appellate Court
Civil Court
Insurance
Citation
Case Number: 
2013 IL App (1st) 113340
Decision Date: 
Friday, January 11, 2013
District: 
1st Dist.
Division/County: 
Cook Co.,Chancery Div.
Holding: 
Affirmed.
Justice: 
TAYLOR
Declaratory judgment action filed after settlement of claims of 29 persons injured and 12 killed in collapse of three-story porch at rear of apartment building during a party. As porch collapse and resulting injuries and deaths constituted only one occurrence, even though some injuries and deaths did not occur until some time after collapse, insurer of property was not obligated to pay Plaintiffs the aggregate policy limit, under policy language defining occurrence. (HOWSE and PALMER, concurring.)

Nationwide Ins. Co. v. Central Laborer’s Pension Fund

Federal 7th Circuit Court
Nationwide Ins. Co. v. Central Laborer’s Pension Fund
Civil Court
Insurance
Citation
Case Number: 
No. 12-1784
Decision Date: 
January 11, 2013
Federal District: 
S.D. Ill.
Holding: 
Affirmed
Dist. Ct. did not err in granting plaintiff-insurance company’s motion for summary judgment in action seeking declaration that it had no duty to defend or indemnify defendant-insured under terms of homeowner’s policy where defendant had been sued for credit monitoring and insurance expenses arising out of theft from defendant’s car of laptop and compact disk containing confidential and personal information that had been gathered during defendant’s employment. Terms of policy excluded coverage for property damage arising out of or in connection with defendant’s business, and defendant’s failure to safeguard compact disc was omission related to her job duties. Ct. also found that separate provision of policy that excluded coverage for damage to property in exclusive care of defendant also applied.

West Bend Mutual Ins. Co. v. Arbor Homes, LLC

Federal 7th Circuit Court
West Bend Mutual Ins. Co. v. Arbor Homes, LLC
Civil Court
Insurance
Citation
Case Number: 
No. 12-2274
Decision Date: 
January 8, 2013
Federal District: 
S.D. Ind., Indianapolis Div.
Holding: 
Affirmed
Dist. Ct. did not err in granting plaintiff-insurance company’s motion for summary judgment in action seeking declaration that plaintiff owed no duty under its insurance policy to defend and indemnify defendant-insured in underlying lawsuit against defendant for repairs to plumbing in home where said lawsuit was eventually settled by defendant with home owner. Voluntary payment provision in policy excluded coverage where, as here, defendant generated settlement of underlying homeowner’s claim without obtaining prior consent of plaintiff. Fact that plaintiff originally took position that defendant was not additional insured under policy, or that plaintiff suffered no prejudice due to any late notice of underlying claim did not require different result.

Illinois State Bar Association Mutual Insurance Company v. Cavenagh

Illinois State Bar Association Mutual Insurance Company v. Cavenagh
Illinois Appellate Court
Civil Court
Duty to Defend
Citation
Case Number: 
2012 IL App (2d) 111810
Decision Date: 
Thursday, December 20, 2012
District: 
2d Dist.
Division/County: 
Cook Co., 4th Div.
Holding: 
Affirmed.
Justice: 
EPSTEIN
ISBA Mutual filed declaratory judgment action against its insured attorney, seeking declaration that it had no duty to defend its insured against claim filed by fellow attorney, which alleged that he had fraudulently misrepresented status of PI suit to mislead him from taking further action to defend PI case. Default judgment was entered against attorney's client, who then sued him for legal malpractice. Policy language excludes coverage for any claim arising out of any fraudulent or intentional act or omission committed by insured. Insurer has no duty to defend, as duty is only triggered by allegations that insured has committed act of negligence, not act classified as intentional. Court properly dismissed insured's breach of fiduciary duty claim, in absence of allegations establishing a fiduciary relationship. (QUINN and McBRIDE, concurring.)