Subject Index Insurance

On Sept. 19, 2024, the Illinois Supreme Court held that subrogation claims are permissible when an insurer pays for an insured loss, even if payment is made to a third party.

On Sept. 10, 2024, the First District of the Illinois Appellate Court held that there is no duty to defend when a claim does not potentially fall within coverage of an insurance policy.

Illinois will transition from the current Affordable Care Act health insurance exchange to a state-based exchange in two phases. In the first phase, Illinois will transition to a state-based health insurance exchange on a federal platform by 2025; during the second phase, Illinois will transition to a fully state-administrated exchange by 2026.

The Illinois General Assembly amended the Illinois Insurance Code. Any group or individual plan of accident and health insurance or managed care plan that is amended, delivered, issued, or renewed after Jan. 1, 2026, must now provide coverage for one wig or scalp prosthesis no less than once every 12 months.

The Illinois General Assembly amended the Illinois Insurance Code. A group or individual accident and health insurance policy that provides dependent coverage and is issued, amended, delivered, or renewed after Jan. 1, 2026, must also provide dependent coverage for a qualifying dependent parent or stepparent of the policyholder.

On June 21, 2024, the Fourth District of the Illinois Appellate Court held underinsured motorist coverage is not automatically required to be included in a bodily injury liability policy where the policy provides uninsured motorist coverage at the minimum limits required by law.

On June 18, 2024, the Fourth District of the Illinois Appellate Court held an insurance company did not have a duty to defend, reasoning the underlying negligence claim against the insured fell under the professional services exclusion.

The Department of Insurance adopted a new part requiring health insurance coverage for over-the-counter contraceptive drugs, devices, and products, and which prohibits health insurers from requiring a prescription to cover them.

On May 23, 2024, the Illinois Supreme Court held that insurance clauses prohibiting the stacking of liability coverage are allowed.

On April 19, 2024, the First District of the Illinois Appellate Court held that an insurance policy’s exclusion for “knowing violation of rights of another” bars coverage when allegations of the complaint in the underlying matter allege malicious acts.

On Nov. 30, 2023, the Illinois Supreme Court held that uninsured motorist policies that limit coverage to vehicle occupants violate section 143a of the Illinois Insurance Code and are unenforceable as a matter of public policy.

The Illinois General Assembly amended the Illinois Insurance Code. A pharmacy benefit manager may not engage in retaliatory acts against a pharmacy or pharmacist for disclosing information they reasonably believe contains evidence of a violation of a state or federal law, rule, or regulation.

The Illinois General Assembly amended the Illinois Insurance Code. Any group or individual policy of accident and health insurance or managed care plan amended, delivered, issued, or renewed after Jan. 1, 2025, must include coverage for one annual mental health prevention and wellness visit for children and adults.

On Aug. 30, 2023, the First District of the Illinois Appellate Court held insurance companies are not required to defend an insured when the alleged conduct does not constitute an “occurrence” as defined by their policies.

On Aug. 14, 2023, the Third District of the Illinois Appellate Court held that an insurance company had no duty to defend or indemnify its policyholder in a derivative suit where the insurance company was found to have no duty to defend in a previous case arising from the same transaction.

The Illinois General Assembly amended the portion of the Illinois Insurance Code regarding coverage for naloxone hydrochloride (Narcan), a drug used to rapidly reverse opioid overdoses. Accident and health insurance policies for groups and individuals that provide coverage for naloxone hydrochloride and are delivered, amended, issued, or renewed after Jan. 1, 2024, will be prohibited from imposing copays.

The Illinois General Assembly enacted the Private Primary Residential Flood Act. The Act regulates private insurers offering primary residential flood insurance to consumers. All insurers must notify and obtain the approval of the Department of Insurance at least 30 days before writing a residential flood insurance policy within the state.

On Nov. 30, 2022, the First District of the Illinois Appellate Court held that failure to provide notice of a claim to an insurer within 30 days of an automobile accident per the policy was not a material breach justifying nonperformance by an insurer.

On Nov. 16, 2022, the First District of the Illinois Appellate Court held a statute governing the effect of marriage dissolution judgments on life insurance policy beneficiaries should not be applied retroactively.

This Act amends the Illinois Insurance Code. When an insurer determines an insured or third-party claimant’s private-passenger vehicle is a total loss and is covered under the terms of a personal automobile policy issued or renewed on or after July 1, 2022, the insurer must pay a replacement vehicle use or occupation tax, and title and transfer fees.

On Aug. 15, the First District of the Illinois Appellate Court held that an insurance company must receive actual notice of a suit against its insured to trigger a duty to indemnify or defend the insured.

On June 22, 2022, the First District of the Illinois Appellate Court held that a homeowner’s insurance policy provided coverage for a fire that started when the policyholder was performing plumbing work at the property he did not own.

On June 27, 2022, the Third District of the Illinois Appellate Court held that a vehicle was not excluded from liability coverage because the family member exclusion did not apply, and the vehicle was not available for “regular” use.

On Mar. 21, 2022, the First District of the Illinois Appellate Court held that disruptions to a restaurant’s business during the COVID-19 pandemic constituted an economical, but not physical, loss within the meaning of an insurance policy.

On Sept. 14, 2021, the Fourth District of the Illinois Appellate Court reversed and remanded a trial court’s order requiring an insurance company to provide coverage.

On July 23, 2020, the First District of the Illinois Appellate Court found that a plaintiff who waited 11 days to report a hit-and-run accident did so “as soon as practicable” under the circumstances.

On July 22, 2020, the Second District of the Illinois Appellate Court affirmed a circuit court’s ruling that, in the interest of public policy, an insured passenger in a car accident was entitled to uninsured-motorist coverage despite the terms of the insurance policy clearly stating the opposite.

On July 24, 2020, the Fifth District of the Illinois Appellate Court held that the cost of labor cannot be depreciated when an insurer is calculating the actual cash value of a loss.