Insurance Law

A-1 Roofing Company v. Navigators Insurance Company

A-1 Roofing Company v. Navigators Insurance Company
Illinois Appellate Court
Civil Court
Insurance
Citation
Case Number: 
2011 IL App (1st) 100878
Decision Date: 
Friday, June 24, 2011
District: 
1st Dist.
Division/County: 
Cook Co., 6th Div.
Holding: 
Reversed and remanded.
Justice: 
CAHILL
(Court opinion corrected 11/21/11.) General contractor for roof resurfacing job at high school was the only additional insured under subcontractor's CGL policy which had additional insured endorsement stating that coverage would not be provided for any claim arising out of sole negligence of any additional insured. Employee of another subcontractor was killed while operating boom-lift leased by insured's subcontractor. Negligence allegations in underlying complaint were not exclusively directed at general contractor, and thus sole negligence exclusion was not triggered to negate coverage. Insurer, which failed to do anything other than respond to tender with letter, is estopped from asserting policy defenses to coverage. (GARCIA and McBRIDE, concurring.)

Public Act 97-623

Topic: 
Medical records of deceased family members
(Wilhelmi, D-Joliet;Brady, R-Bloomington) creates a procedure and statutory form to allow certain family members to get the medical records of deceased family members without being forced to open an estate. A surviving spouse may make a written request for a copy of his or her deceased spouse’s records if: (1) An executor or administrator has not been appointed for the deceased’s estate; or (2) The deceased did not appoint an agent under a power of attorney for health care who was authorized to act for the deceased after death, and the deceased had not specifically objected to disclosure in writing. If there is no surviving spouse, the records may be released if requested in writing by (1) an adult son or daughter of the deceased, (2) a parent of the deceased, or (3) an adult brother or sister of the deceased. Senate Bill 1694 also amends the Illinois Power of Attorney for Health Care to allow an agent to access the principal’s medical records after the principal’s death if the principal has delegated that authority in the power of attorney. This Act took effect November 23, 2011.
View Full Text of Legislation

Allstate Property and Casualty Insurance Company v. Mahoney

Allstate Property and Casualty Insurance Company v. Mahoney
Illinois Appellate Court
Civil Court
Insurance
Citation
Case Number: 
2011 IL App (2d) 101279
Decision Date: 
Tuesday, November 1, 2011
District: 
2d Dist.
Division/County: 
Du Page Co.
Holding: 
Affirmed.
Justice: 
SCHOSTOK
(Court opinion corrected 11/8/11.) Plaintiff, who owned a garage where another person was working on his motorcycle, was injured while test-driving the motorcycle at the request of its owner, when the brake pedal its owner had welded on to cycle snapped off. Garage owner sued motorcycle owner for his injuries, and his parents' homeowner's insurer filed declaratory judgment action. Negligent welding of brake pedal would not have proximately caused injuries had the motorcycle not been in motion at time of accident, and was thus not "wholly independent" of the use of the motorcycle. Thus, insurer had no duty to defend, per policy's motor vehicle exclusion. (HUTCHINSON and BURKE, concurring.)

USAA Casualty Insurance Company v. McInerney

USAA Casualty Insurance Company v. McInerney
Illinois Appellate Court
Civil Court
Insurance
Citation
Case Number: 
2011 IL App (2d) 100970
Decision Date: 
Monday, October 31, 2011
District: 
2d Dist.
Division/County: 
Lake Co.
Holding: 
Affirmed.
Justice: 
SCHOSTOK
Homeowners sought rescission of real estate contract or compensatory damages due to extensive water infiltration and flooding in basement after purchase, and sued sellers of home for negligent misrepresentation in disclosure report. Sellers tendered defense to their family liability policy. Complaint alleged property damage and bodily injury as result of occurrence at least potentially covered by policy, and thus insurer had duty to defend sellers in underlying suit. Remedy sought was not contract based, and thus contract exclusion is inapplicable. (McLAREN and HUDSON, concurring.)

Rose Acre Farms, Inc. v. Columbia Casualty Co.

Federal 7th Circuit Court
Rose Acre Farms, Inc. v. Columbia Casualty Co.
Civil Court
Insurance
Citation
Case Number: 
No. 11-1599
Decision Date: 
November 1, 2011
Federal District: 
S.D. Ind., New Albany Div.
Holding: 
Affirmed
Dist. Ct. did not err in granting defendant-insurance company's motion for summary judgment in action seeking declaration that insurance policy issued by defendant covered underlying class action alleging that plaintiff had violated antitrust provisions of Sherman Act by conspiring with others to fix price of eggs. Ct. rejected plaintiff's contention that policy's "personal and advertising injuries" provision covered underlying action where: (1) underlying antitrust complaint asserted only existence of conspiracy to fix price of eggs and failed to mention any advertising on part of anyone; (2) policy provisions did not cover either plaintiff's use of third-party's advertising idea that had consent of third-party or any advertising injury that was caused by or at direction of plaintiff with knowledge that plaintiff's actions would violate rights of others; and (3) instant parties did not intend to cover serious antitrust liability indirectly through advertising injury provision.

When Does an Insured Have a Right to Independent Counsel?

By Robert P. Vogt
March
2009
Article
, Page 142
A look at the kinds of conflict of interest with insurers and others that trigger an insured’s right to independent counsel.

Stranger-Owned Life Insurance: The Risks and How to minimize them

By James C. Shanley
November
2009
Article
, Page 569
An elderly - and wealthy - person lets investors buy insurance on his life in return for cash, and everyone makes money. Or do they?

Stranger-Owned Life Insurance: The Rewards: a Fictional Case Study

By Stephen M. Margolin & Valerie J. Freireich
November
2009
Article
, Page 568
An elderly - and wealthy - person lets investors buy insurance on his life in return for cash, and everyone makes money. Or do they?

Analyzing Occurrences in Insurance Coverage Cases: The Cause Theory After Addison v Fay

By Ross B. Edwards
March
2010
Article
, Page 152
When does an incident involving multiple parts or parties constitute only a single "occurrence" for insurance-coverage purposes? Read what the Illinois Supreme Court said recently.

Pekin Insurance Company v. Xdata Solutions

Pekin Insurance Company v. Xdata Solutions
Illinois Appellate Court
Civil Court
Insurance
Citation
Case Number: 
2011 IL App (1st) 102769
Decision Date: 
Friday, September 30, 2011
District: 
1st Dist.
Division/County: 
Cook Co., 1st Div.
Holding: 
Affirmed.
Justice: 
KARNEZIS
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.)