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Knouse v Mohamednur

2017 IL App (1st) 161856 (Ill. App., 2017)

Words & Phrases

Guaranty Association: Other Insurance

Trial Judge

Patrick F. Lustig

Appellate Judge

Sheldon A. Harris


Guaranty Fund could not assert "other insurance" clause to reduce its obligation to pay.

Fact Summary

On December 19, 2010, plaintiff, an
Indiana resident, was injured when he attempted to enter a taxi cab on North Water Street in Chicago. Defendant, an Illinois resident, was the driver of the taxi. Plaintiff suffered injuries and incurred $5,111.07 in medical expenses. On November 28, 2012, plaintiff filed a complaint against defendant, Santorini Five Cab Corp. (Santorini), and Globe Taxi Association, Inc. (Globe Taxi). Plaintiff voluntarily dismissed Santorini and Globe Taxi, and the cause proceeded to jurytrial against defendant.
When the accident occurred in 2010, defendant was covered under a liability insurance policy issued by Ullico Casualty Company (Ullico). Ullico became insolvent and was liquidated on May 30, 2013. Due to Ullico’s insolvency, the Illinois Insurance Guaranty Fund (Guaranty Fund) assumed the defense of plaintiff’s complaint.

At the time of the occurrence, plaintiff was covered under an automobile liability policy issued by State Farm Insurance (State Farm). The policy also provided uninsured motor vehicle coverage of up to $100,000 per person for each occurrence.  The State Farm policy covered uninsured motor vehicle claims due to the insolvency of defendant’s insurer only if the insurer became insolvent within two years of the accident.

Since Ullico became insolvent more than two years after the date of the accident, the unambiguous terms of plaintiff’s State Farm policy do not provide uninsured motor vehicle coverage here. Accordingly, this policy is not “other insurance” within the meaning of section 546(a) of the Code.