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Country Preferred Ins. Co. v Groen

2017 IL App (4th) 160028 (Ill. App., 2017)

Words & Phrases

Uninsured Motorist Coverage: Setoff

Trial Judge

Chris Perrin

Appellate Judge



Set-off for worker's compensation benefits applied to UM coverage.

Fact Summary

Following an accident that occurred during the course of her employment, defendant, Lori Groen, received benefits under the Illinois Workers’ Compensation Act (Act) (820 ILCS 305/1 to 30 (West 2010)) in excess of $400,000. In addition, she sought benefits from plaintiff, Country Preferred Insurance Company, under an uninsured motorist policy, which contained a provision entitling plaintiff to reduce the amount of its liability by any payments made or due under the Act (setoff provision). Ultimately, the trial court granted summary judgment in favor of plaintiff. Defendant appeals, arguing that the court erred in granting summary judgment because plaintiff is prohibited from reducing the amount of its available uninsured motorist coverage by the amount of medical expenses paid by her employer.

Specifically, she argues (1) medical payments made pursuant to the Act are not “for” an insured and, therefore, are not subject to setoff under her uninsured motorist policy; (2) alternatively, the setoff provision is ambiguous as to whether medical payments made by an employer under the Act are subject to setoff and, therefore, should be construed in her favor; and (3) the setoff provision “is unenforceable because it violates the *** Act.” We affirm.