Appellate Court Reaffirms Innocent Co-Insured Rule in Illinois
September, 2004
In Wasik v. Allstate Ins. Co., 813 N.E.2d 1152 (Ill. App. 2004), the Illinois Appellate Court reaffirmed the rule that innocent co-insureds recover even when other insureds intentionally burn down the property.
Facts
Martin Wasik, the named insured on the Allstate homeowners policy, allowed his stepson, William, William’s wife, Kathleen, and their son to live in Wasik’s home. While Wasik was not at home, there was a fire in the garage which either the stepson or his son must have set. Allstate denied Mr. Wasik’s claim, contending that William was an insured when the loss occurred. Allstate further asserted that pursuant to the policy’s “joint obligations” clause, responsibilities, acts and failures of “an insured person” were “binding upon another person defined as an insured person.” Finally, Allstate argued that “intentional or criminal acts of or at the direction of any insured person,” were specifically excluded. The trial court granted summary judgment to Allstate.
Analysis
The Illinois Appellate Court, Second District, reversed and entered judgment for Mr. Wasik. The Court stated that the joint obligations clause was ambiguous, and that perhaps it applies to the duty to pay premiums, when clearly that is not the only duty of an insured.
Learning Point:
The Appellate Court’s opinion can only be understood as an affirmation that innocent coinsureds will recover in this State no matter how insurers may try to rewrite their policies to prevent such recoveries.
Back to CM Report of Recent Decisions (2004v3) 2004 Volume 3 Table of Contents
