Plaintiff filed a lawsuit against her employer’s general commercial liability carrier alleging the insurance company unreasonably delayed payment after plaintiff was injured in an automobile collision with an underinsured motorist. Plaintiff sought relief under section 155 of the Illinois Insurance Code, which provides supplemental remedy for an insurer’s unreasonable delay in settling an insurance claim through an action for breach of contract. The district court granted judgment on the pleadings to the defendant and plaintiff appealed. The Seventh Circuit affirmed, finding that the insurance policy at question did not create a contractual duty for the insurer to investigate and settle the claim for underinsured motorist benefits in good faith and, without that, plaintiff did not have a viable legal theory to support her claim. (EASTERBROOK and BRENNAN, concurring)
Federal 7th Circuit Court
Civil Court
Insurance Coverage