Hess v. Estate of TJay Klamm

Summary

The Illinois Supreme Court held that a multivehicle automobile insurance policy unambiguously prohibited stacking bodily injury liability coverage. Although the liability limits appeared on two declarations pages, they were not listed separately for each vehicle, and the policy limited coverage to $100,000 per person and $300,000 per accident. The court reversed the lower courts’ judgments and remanded with directions to enter judgment for the insurer.

Holdings

1. When the declarations pages are read together with the antistacking clause, the policy is unambiguous and prohibits stacking of bodily injury liability coverage.
2. Separate premiums for the covered vehicles and the statement that coverage is provided where a premium is shown do not create an ambiguity or permit stacking when the antistacking clause unambiguously limits the insurer's liability.
3. The policy limits bodily injury liability coverage to $100,000 per person and $300,000 per accident, regardless of the number of claims, insureds, covered vehicles, premiums, or vehicles involved in the accident.

Questions Presented

1. Whether the automobile liability policy was ambiguous concerning whether its bodily injury liability limits could be stacked for the four covered vehicles.
2. Whether the repeated listing of the liability limits on two declarations pages, separate premiums for each vehicle, and the policy's coverage-premium statement created an ambiguity permitting stacking.
3. Whether the policy provided bodily injury liability coverage of $100,000 per person and $300,000 per accident regardless of the number of covered vehicles.

Disposition

reversed_and_remanded