Illinois Ins. Guaranty Fund v. Chicago Ins. Co.
2015 IL App (5th) 140033 (Ill. App., 2015)Words & Phrases
Professional Liability Policy: In GeneralTrial Judge
Hon. Stephen McGlynnAppellate Judge
Justice StewartHolding
No coverage under claims-made policy when defendant physician was no longer employed by insured.Fact Summary
Where the Illinois Insurance Guaranty Fund filed a declaratory judgment action against defendant insurer for a determination of whether a “claims-made” policy issued to a women’s clinic for claims made between July 1, 2001, through July 1, 2002, provided coverage for a physician formerly employed at the clinic, even though the physician was not expressly named as an insured in the claims-made policy issued by defendant after the physician’s employment relationship ended, the trial court’s entry of summary judgment for plaintiff requiring defendant to pay for the defense of the physician in an underlying malpractice claim was reversed and the cause was remanded, since defendant’s policy was not “coverage provided by another insurance policy” that had to be exhausted under section 546(a) of the Insurance Code, the physician did not qualify as an insured under the plain language of the policy, and defendant insurer only agreed to pay on behalf of the clinic as a result of the physician’s acts for which it was legally responsible.