Anderson v. Vrahnos, 149 Ill. App. 3d 251

500 N.E.2d 110 (Ill. App. Ct. 1986) · Appellate Court of Illinois, Second District · November 3, 1986 · No. No. 2-85-0543

Summary

The Illinois Appellate Court held that an enforceable oral insurance binder existed despite the insureds' failure to return an application for permanent coverage. However, the court concluded that Illinois's statutory offer requirement for underinsured-motorist coverage did not apply to temporary insurance binders. The trial court's grant of summary judgment for Interstate Fire & Casualty Company was therefore affirmed.

Holdings

  1. An enforceable oral insurance contract existed because Interstate promised to provide coverage and the Andersons impliedly promised to pay the premium; returning the application was not necessary consideration.
  2. The application-return language did not create a condition precedent to Interstate's duty to provide coverage during the five-day binder period; coverage was effective immediately and continued for five days unless an application was received to continue it.
  3. Section 143a-2(3) did not require Interstate to offer underinsured-motorist coverage before authorizing the temporary oral binder; therefore, the binder did not include underinsured-motorist coverage as a matter of law.

Questions Presented

  1. Whether the Andersons' failure to return the permanent-insurance application meant that no enforceable insurance contract existed for the binder period.
  2. Whether the application-return requirement was a condition of Interstate's duty to provide coverage during the five-day binder period.
  3. Whether section 143a-2(3) of the Illinois Insurance Code required an offer of underinsured-motorist coverage for an oral temporary insurance binder and, absent such an offer, implied that coverage into the binder.

Disposition

affirmed

Cases Cited (8)

  • Village of Schaumburg v. Franberg, 99 Ill. App. 3d 1, 9, 424 N.E.2d 1239 (1981)(followed)
  • Elliot v. Villa Park Trust & Savings Bank, 63 Ill. App. 3d 714, 717, 380 N.E.2d 507 (1978)(followed)
  • Leisure v. Smith, 13 Ill. App. 3d 1070, 1073, 302 N.E.2d 177 (1973)(followed)
  • Rymer v. Kendall College, 64 Ill. App. 3d 355, 359, 380 N.E.2d 1089 (1978)(followed)
  • State Farm Mutual Automobile Insurance Co. v. Schmitt, 94 Ill. App. 3d 1062, 1063, 419 N.E.2d 601 (1981)(followed)
  • State Farm Fire & Casualty Co. v. Moore, 103 Ill. App. 3d 250, 255, 430 N.E.2d 641 (1981)(followed)
  • Tucker v. Country Mutual Insurance Co., 125 Ill. App. 3d 329, 465 N.E.2d 956 (1984)(followed)
  • Cloninger v. National General Insurance Co., 109 Ill. 2d 419, 424, 488 N.E.2d 548 (1985)(followed)

Cited In (0)

No citing cases on record yet.

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