Arbitration Of Uninsured And Underinsured Motorist Claims, By Robert H. Hanaford (part 3)

1 The provisions contained in section 215 ILCS 5/143a deal with uninsured and hit and run vehicle coverage and section 215 ILCS 5/143a-2 deals with underinsured coverage.

1 48 Ill.2d 1, 269 N.E.2d 295 (1970).

2 181 Ill.2d 426, 230 Ill. Dec. 30, 692 N.E.2d 1196 (1998).

3 Outboard Marine Corporation v. Liberty Mutual Insurance Company, 154 Ill.2d 90, 180 Ill.Dec. 691, 607 N.E. 2d 1204 (1992); United States Fidelity & Guaranty Insurance Company v. Jiffy Cab Company, 265 Ill.App.3d 533, 202 Ill.Dec. 431, 637 N.E.2d 1167 (1st Dist. 1994).

4 215 ILCS 5/143a(1). It is required that "every liability insurance policy issued for any motor vehicle registered or principally garaged in Illinois must provide coverage for bodily injury or death caused by an uninsured or hit-and- run vehicle. " Luechtefeld v. Allstate Insurance Company, 167 Ill.2d 148, 212 Ill.Dec. 224, 656 N.E.2d 1058 (1995); Harrington v. American Family Mutual Insurance Company, 332 Ill.App.3d 385, 265 Ill.Dec. 736, 773 N.E.2d 98 (1st Dist. 2002); Norris v. National Union Fire Ins. Company, 326 Ill.App.3d 314, 760 N.E.2d 141, 260 Ill.Dec. 62 (1st Dist. 2001).

5 Groshans v. Dairyland Insurance Company, 311 Ill.App.3d 876, 244 Ill.Dec. 542, 726 N.E.2d 138 (3rd Dist. 2000).

6 159 Ill.App.3d 766, 111 Ill.Dec. 530, 512, N.E.2d 1071 (2nd Dist. 1987).

7 Id at 533.

8 Id at 1075.

9 78 Ill.Dec.407, 462 N.E.2d 526 (5th Dist. 1984).

10 Id at 528.

11 278 Ill.App.3d 1049, 215 Ill.Dec. 593, 663 N.E.2d 1107 (3rd Dist. 1996).

12 Id at 1112

13 Ramirez v. State Farm Mutual Automobile Insurance Company, 331 Ill.App.3d 77, 771 N.E.2d 619, 264 Ill.Dec. 915 (2nd Dist. 2002); Curtis v. Birch, 114 Ill.App.3d 127, 69 Ill.Dec. 873, 448 N.E.2d 591 (1st Dist. 1983).

14 326 Ill.App.3d 1065, 261 Ill.Dec. 236, 762 N.E.2d 1163 (3rd Dist. 2002).

15 Id at 239.

16 Id.

17 See, Fidelity and Casualty Company v. Merridew, 327 Ill.App.3d 51, 261 Ill.Dec, 1, 762 N.E.2d 570 (1st Dist. 2001).

18 215 ILCS 5/143 a-2(1)-(3). See, Isaacson v. Country Mutual Insurance Company, 328 Ill.App.3d 982, 263 Ill.Dec, 136, 767 N.E.2d 862 (3rd Dist. 2002).

19 Financial Responsibility Act, 625 ILCS 5/7-203.

20 215 ILCS 5/143a-2(4).

21 215 ILCS 5/143a-2(4).

22 168 Ill.2d 216, 213 Ill.Dec. 606, 659 N.E.2d 952 (1995). In Grzeszcak, the court found anti-stacking language unambiguous that provided "the total limit of Illinois Farmers' liability under all the policies shall not exceed the highest applicable limit of liability under any one policy."

23 215 ILCS 5/143a(1).

24 214 Ill.2d 11, 291 Ill. Dec. 269, 823 N.E.2d 561 (2005).

25 Id at 272-73.

26 Id at 275.

27 Id at 275-76.

28 --- Ill.App.3d, ---, --- Ill.Dec. ---, --- N.E.2d ---, 2006 WL 1653355 (Ill.App. 5th Dist.). Opinion not released as of this writing.

29 Id.

30 Id.

31 Id. The court also noted that insurers in Illinois are required to include certain data in policies and declarations pages. "In Illinois, the policy and its declarations page or schedule-of-coverage page should detail the nature and amounts of coverage in order to protect consumers from unwittingly accepting insurance and amounts contrary to those for which he or she bargained."

32 323 Ill.App.3d 153, 256 Ill. Dec. 192, 751 N.E.2d 582 (1st Dist. 2001).

33 Id at 583.

34 Id. Illinois Insurance Code, 215 ILCS 5/143a.

35 Id at 583-84.

36 Id at 585.

37 Id.

38 215 ILCS 5/143a(1).

39 181 Ill.2d 426, 230 Ill. Dec. 30, 692 N.E.2d 1196 (1998).

40 Id at 35.

41 167 Ill.2d 148, 212 Ill.Dec. 224, 656 N.E.2d 1058 (1995).

42 Id at 230. Cf, Illinois Farmers Insurance Company v. Cisco, 178 Ill.2d 386, 227 Ill.Dec. 325, 687 N.E.2d 807 (1995), (Policy provision denying coverage for injury in non-owned car where non-owned car had other coverage was unenforceable. Unlike in Villacana and Luechtefeld, the injured insured did choose the coverage on the accident vehicle).

43 215 ILCS 5/143a-2(4).

44 178 Ill.2d 474, 227 Ill.Dec. 539, 687 N.E.2d 1021 (1997).

45 Id at 544-45.

46 Id at 545.

47 215 ILCS 5/143a-2(4).

48 327 Ill.App.3d 920, 261 Ill.Dec. 839, 764 N.E.2d 130 (5th Dist. 2002).

49 Id at 137. See also, Mercury Indemnity Company of Illinois v. Kim, 358 Ill.App.3d 1, 294 Ill.Dec. 191, 830 N.E.2d 603 (1st Dist. 2005) (Noting that Cummins superseded by an amendment to the underinsured motor vehicle coverage statute).

50 Fidelity and Casualty Company v. Merridew, 327 Ill.App.3d 51, 261 Ill.Dec, 1, 762 N.E.2d 570 (1st Dist. 2001). (Per person limit applies and not the per occurrence limit where there is only one injury and there is both a recovery by the injured person and a recovery by a spouse for a derivative claim for loss of consortium).

51 188 Ill.2d 493, 243 Ill.Dec, 56, 722 N.E.2d 1125 (1999).

52 Id at 1126-27.

53 222 Ill.2d 472, 305 Ill.Dec. 634, 8856 N.E.2d 439 (2006). Overruling, Roth v. Illinois Farmers Insurance Co., 324 Ill.App.3d 293, 257 Ill.Dec. 781, 754 N.E.2d 439 (5th Dist. 2001), (The Roth court applied the $500,000 per occurrence amount to claims for wrongful death since it found the policy language was ambiguous).

54 Id at 440.

55 Id at 441. The policy language stated, in part: "The uninsured motorist bodily injury limit for 'each person' is the maximum we will pay for all damages resulting from bodily injury sustained by one person in any one accident or occurrence. Included in this limit ... are all the consequential damages sustained by other persons, such as loss of services, loss of support, loss of consortium, wrongful death, grief, sorrow and emotional distress."

56 Id at 445. See also,Illinois Farmers Insurance Company v. Hall, 363 Ill.App.3d 989, 300 Ill.Dec. 530, 844 N.E.2d 973 (1st Dist. 2006) (Per person limit applies to loss of consortium claim); Martin v. Illinois Farmers Insurance Company, 318 Ill.App.3d 751, 252 Ill.Dec. 310, 742 N.E.2d 848 (1st Dist. 2000) (Receipt of $100,000 from at fault driver precluded loss of society claim under UIM coverage for $100,000 since the at fault driver was not underinsured and the per person limit applies to the loss of society claim).

57 148 Ill.2d 272, 170 Ill.Dec. 351, 592 N.E.2d 1031 (1992).

58 Id at 355.

59 247 Ill.App.3d 480, 186 Ill.Dec. 579, 616 N.E.2d 1021 (2nd Dist. 1993).

60 Id at 1024.

61 185 Ill.2d 262, 235 Ill.Dec. 579, 705 N.E.2d 762 (1998).

62 805 ILCS 305/5(b). Id at 766.

63 Sulser v. Country Mutual Insurance Company, 147 Ill.2d 548, 169 Ill.Dec. 254, 591 N.E.2d 427 (1992); Stryker v. State Farm, 74 Ill.2d 507, 24 Ill.Dec. 832, 386 N.E.2d 36 (1978) (Setoff from uninsured and underinsured coverage for worker's compensation benefits received is not contrary to public policy).

64 263 Ill.App.3d 100, 200 Ill.Dec. 194, 635 N.E.2d 533 (1st Dist. 1994).

65 See also, State Farm Mutual Automobile Insurance Company v. Coe, ---N.E.2d---, 2006 WL 2547329 (Ill.App. 1st Dist.) (Police officer denied UIM recovery because workers' compensation benefits exceeded available UIM coverage).

66 185 Ill.2d 262, 235 Ill.Dec. 579, 705 N.E.2d 762 (1998).

67 Id at 766-67.

68 215 Ill.2d 381, 294 Ill.Dec. 163, 830 N.E.2d 575 (2005).

69 Id at 583.

70 . Standard Mutual Insurance Company v. Petreikis, 183 Ill.App.3d 272, 131 Ill.Dec.771, 538 N.E.2d 1327 (4th Dist. 1989).

71 215 ILCS 5/143a-2(6)

72 238 Ill.App.3d 196, 179 Ill.Dec.383, 606 N.E.2d 215 (1st Dist.1992).

73 Id.

74 Id at 218.

75 325 Ill.App.3d 904, 258 Ill.Dec. 907, 757 N.E.2d 596 (1st Dist. 2001).

76 279 Ill.App.3d 501, 216 Ill.Dec. 212, 664 N.E.2d 1140 (5th Dist. 1996).

77 See, Parish v. Country Mutual Insurance Company, 351 Ill.App.3d 693, 286 Ill.Dec.516, 814 N.E.2d 166 (4th Dist. 2004); Flatt v. Country Mutual Insurance Company, 289 Ill.App.3d 1097, 225 Ill.Dec.151, 682 N.E.2d 1228 (4th Dist. 1997); Wancho v. Country Mutual Insurance Company, 275 Ill.App.3d 936, 212 Ill.Dec.345, 657 N.E.2d 40 (2nd Dist. 1995); Lemna v. United Services Automobile Association, 273 Ill.App.3d 90, 209 Ill.Dec. 942, 652 N.E.2d 482 (3rd. Dist. 1995).

78 334 Ill.App.3d 751, 268 Ill.Dec.455, 778 N.E.2d 455 (4th Dist. 2002).

79 American Service Insurance Company v. Pasalka, 363 Ill.App.3d 385, 299 Ill.Dec. 867, 842 N.E.2d 1219 (1st Dist. 2006).

80 215 ILCS 5/143a(1).

81 152 Ill.2d 533, 178 Ill.Dec. 745, 650 N.E.2d 439 (1992).

82 Id at 543-44.

83 271 Ill.App.3d 111, 207 Ill.Dec. 758, 648 N.E.2d 214 (1st Dist. 1995).

84 Id at 216. See also, Brooks v. Cigna Property & Casualty Companies, 700 N.E.2d 1052, 299 Ill.App.3d 68, 233 Ill.Dec. 344 (1st Dist. 1998).

85 317 Ill.App.3d 360, 251 Ill.Dec. 57, 739 N.E.2d 990 (2nd Dist. 2000).

86 Id at 996.

87 363 Ill.App.3d 989, 300 Ill.Dec. 530, 844 N.E.2d 973 (1st Dist. 2006).

88 Id at 979-80.

89 362 Ill.App.3d 699, 840 N.E.2d 1236, 298 Ill.Dec. 801 (4th Dist. 2005).

90 Id at 1239.

91 Section 143a(1).

92 Section 143a(1)(A). Some of the types of evidence that may be offered without foundation include medical bills, records, property repair bills or estimates and reports of lost earnings.

93 Section 143(a)(1). The rule generally states that if the amount of damages sought are equal to or less than the amount provided for in Section 7-203 of the Illinois Vehicle Code (Finanacial Responsibility, currently $20,000), then the current American Arbitration Association (AAA) Rules apply. If the amount claimed is greater than Section 7-203, then the Rules of Evidence that apply in the circuit court for placing medical opinions in evidence shall govern.

94 See, Topps v. Unicorn Insurance Company, 271 Ill.App.3d 111, 207 Ill.Dec. 758, 648 N.E.2d 214 (1st Dist. 1995).

95 Section 143a(1)(C).

96 735 ILCS 5/2-1101.

97 215 ILCS 5/143a. Section 7-203 is the Financial Responsibility statute and it mandates a minimum $20,000 in liability coverage.

98 Reed v. Farmers Insurance Group, 188 Ill2d 168, 242 Ill.Dec. 97, 720 N.E.2d 1052 (1999).

99 315 Ill.App.3d 431, 248 Ill.Dec.375, 734 N.E.2d 83 (3rd Dist. 2000).

100 191 Ill2d 536, 250 Ill.Dec. 459, 738 N.E.2d 928 (2000). See also, Samek v Liberty Mutual Fire Insurance Company, 341 Ill.App.3d 1045, 275 Ill.Dec. 582, 793 N.E.2d 62 (1st Dist. 2003) and Fireman's Fund Insurance Companies v. Bugailiskis, 278 Ill.App.3d 19, 214 Ill.Dec. 989, 662 N.E.2d 555 (2nd Dist. 1996) (Holding trial de novo clauses violate public policy and are unenforceable).

102 328 Ill.App.3d 649, 262 Ill.Dec. 756, 766 N.E.2d 676 (5th Dist. 2002).

103 Id at 759.

104 364 Ill.App.3d 883, 301Ill.Dec. 587, 847 N.E.2d 597 (1st Dist. 2006).

105 Id at 600-01.

106367 Ill.App.3d 1, 853 N.E.2d 94, 304 Ill.Dec. 562 (1st Dist. 2006).

107Id at 106.

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