Progressive Universal Insurance Co. of Illinois v. Liberty Mutual Fire Insurance Co., 215 Ill. 2d 121

Summary

The Illinois Supreme Court considered whether a food-delivery exclusion in an automobile liability insurance policy was void and unenforceable under Illinois’s mandatory insurance law requiring coverage for permissive users. The court held that the exclusion was valid because it applied equally to the named insured and permissive users and did not conflict with the statutory omnibus-coverage requirement. The court reversed the appellate court’s judgment and reinstated summary judgment for Progressive.

Holdings

1. An insurance exclusion that applies equally to the named insured and permissive users does not conflict with section 7-317(b)(2), because the statute requires coverage of permissive users only to the same extent that the policy covers the named insured; it does not define which risks must be covered.
2. The food-delivery exclusion is not void or unenforceable under Illinois's mandatory motor-vehicle-insurance law or public policy.
3. Progressive had no duty to defend or indemnify Ronald under the applicable exclusion, and Liberty Mutual was not entitled to reimbursement of the uninsured-motorist payment.

Questions Presented

1. Whether an unambiguous policy exclusion for use of a vehicle to deliver food for compensation or a fee conflicts with section 7-317(b)(2) of the Illinois Safety and Family Financial Responsibility Law.
2. Whether the food-delivery exclusion is void and unenforceable as against Illinois public policy.
3. Whether Progressive owed a duty to defend or indemnify Ronald Abbinante and whether Liberty Mutual was entitled to reimbursement.

Disposition

reversed