General Cas. Ins. Co. v. Lacey
Decision Date | 18 April 2002 |
Docket Number | No. 90993.,90993. |
Citation | 769 N.E.2d 18,199 Ill.2d 281,263 Ill.Dec. 816 |
Parties | GENERAL CASUALTY INSURANCE COMPANY, Appellee, v. George W. LACEY, Appellant. |
Court | Illinois Supreme Court |
John A. Slevin, John R. Pusey, of Vonachen, Lawless, Trager & Slevin, Peoria, for appellant.
Heyl, Royster, Voelker & Allen, Peoria (Karen L. Kendall, Craig L. Unrath, Rex K. Linder, of counsel), for appellee.
The issue presented is whether, under the facts of this case, the liability-limit exhaustion clause in General Casualty Insurance Company's underinsured-motorist policy is valid and enforceable. We hold that it is.
On June 22, 1991, George W. Lacey was operating a car that was involved in a motor vehicle accident. At the time of the accident, Lacey was covered by an under insured-motorist policy issued by General Casualty. That policy provided coverage limits of $100,000 per accident and $300,000 per occurrence, and included the following liability-limit exhaustion clause:
The other driver involved in the accident was insured by Allstate Insurance Company under a policy providing bodily injury liability limits of $50,000 per person and $100,000 per accident.
In the summer of 1997, Lacey settled with Allstate for $42,500. Lacey then filed a claim with General Casualty for underinsured-motorist benefits. General Casualty denied the underinsured-motorist claim, insisting that underinsured-motorist coverage was not triggered because the $42,500 settlement did not exhaust the at-fault driver's bodily injury liability limits. In addition, General Casualty sought a declaration from the trial court that Lacey was not entitled to underinsured-motorist benefits. In response, Lacey conceded that the $42,500 settlement with Allstate failed to exhaust the at-fault driver's bodily injury liability limits. Nevertheless, Lacey argued that he was entitled to underinsured-motorist benefits because General Casualty's liability-limit exhaustion clause was void as against public policy. Both parties moved for summary judgment, and the trial court entered summary judgment in General Casualty's favor. With one justice dissenting, the appellate court affirmed. No. 3-99-0977 (unpublished order under Supreme Court Rule 23). We granted Lacey's petition for leave to appeal. 177 Ill.2d R. 315(a).
Before this court, Lacey again argues that General Casualty's liability-limit exhaustion clause is void as against public policy. In support of this argument, Lacey points to the current enactment of section 143a-2(7) of the Illinois Insurance Code, which provides:
215 ILCS 5/143a-2(7) (West 2000).
Conceding that this version of section 143a-2(7) did not become effective until January 1, 1997, Lacey nevertheless argues-without any citation to authority-that the validity of General Casualty's liability-limit exhaustion clause "should be governed by the law in effect at the time of settlement."
We must reject Lacey's argument. While we agree with Lacey that statutes represent an expression of public policy (State Farm Mutual Automobile Insurance Co. v. Smith, 197 Ill.2d 369, 372, 259 Ill.Dec. 18, 757 N.E.2d 881 (2001)), it is equally well settled that "[s]tatutes in force at the time an insurance policy was issued are controlling." (Emphasis added.) State Farm, 197 Ill.2d at 372...
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