Recent Illinois Insurance-Related Opinions
The following summarizes important recent decisions from the Illinois courts on insurance-related issues. This page contains a short summary of the topic(s) addressed in the opinion, the case citation, a one sentence summary
of the key points, and links to a more detailed summary and to the opinion. For additional insight on the significance of any of these cases and how they may impact matters on which you are working, please contact any member
of the Troutman Sanders’ insurance practices.
Target Tender. River Vill. I, LLC v. Harleysville Lake States Ins. Co., No. 1-08-3529, 2009 Ill. App. LEXIS 1149 (1st Dist. Nov. 20, 2009). In a holding seemingly inconsistent with prior Illinois “target tender” cases, the First District Illinois Appellate Court upheld a trial court decision that a general contractor could not “target tender” a subcontractor’s insurance policy where the “other insurance” provision in that policy made the coverage excess over the general contractor’s own primary policy.
Section 155. Statewide Ins. Co. v. Houston Gen. Ins. Co., No. 03 CH 14719 (Ill. App. Ct. 1st Dist. December 14, 2009). The First District Illinois Appellate Court holds that insurer, as assignee
of insured, could recover Section 155 damages from other insurer that wrongfully refused to defend and indemnify the insured.
Coverage for Qui-tam Suits. Ismie Mut. Ins. Co. v. Michaelis Jackson & Assocs., LLC, No. 5-08-0426, (Ill. App. Ct. Dec. 30, 2009). The Fifth District Illinois Appellate Court holds there
is no coverage under medical malpractice insurance policy for qui tam suit alleging Medicare fraud.
Target Tender; Waiver. Chicago Hosp. Risk Pooling Program v. Ill. State Med. Inter-Insurance Exch., Nos. 1-07-2195 and 1-07-2258 (Ill. App. Ct. Dec. 22, 2009). The First District
Illinois Appellate Court holds: 1) insured’s letters requesting a defense and indemnity from risk pooling trust constitute a valid target tender such that the trust was not entitled to contribution; and 2) the risk pooling
trust waived any claim for equitable subrogation.