2013 IL App (4th) 120986
Ill. App. Ct.2013Background
- In February 2009, Steven Skaperdas purchased an auto-insurance policy from Country Casualty through agent Tom Lessaris; the declarations page named only Skaperdas as insured (listed driver as “FEMALE, 30–64”).
- In July 2009, Jonathan Jackson (Day’s son) was injured; Day and Jackson recovered the tortfeasor’s policy limits ($25,000) and then claimed underinsured-motorist benefits under the Country Casualty policy.
- Country Casualty denied coverage because neither Day nor Jackson was listed as a named insured on the policy.
- Plaintiffs sued Lessaris for negligence in procuring insurance and sought a coverage declaration; Country Casualty was sued as well and moved to dismiss under respondeat superior if Lessaris had no duty.
- The trial court dismissed, holding Lessaris was an "agent," not a "broker," and under common law agents owe no duty to procure coverage for insureds.
- Plaintiffs appealed, arguing that 735 ILCS 5/2-2201 (Insurance Placement Liability Act) imposes an ordinary-care duty on all insurance producers, eliminating the agent/broker distinction for duty purposes.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether an insurance "agent" owes a statutory duty of ordinary care to procure requested coverage under section 2-2201 | Section 2-2201 imposes an ordinary-care duty on all "insurance producers" (agents and brokers) to procure requested coverage | Common-law distinction remains: agents owe duties only to insurers, not insureds, so Lessaris owed no duty to plaintiffs | Reversed — section 2-2201 eliminates the common-law agent/broker distinction for duty of care; agents owe ordinary-care duty to procure requested coverage |
Key Cases Cited
- Country Mutual Insurance Co. v. Carr, 366 Ill. App. 3d 758 (Ill. App. Ct.) (section 2-2201 imposes ordinary-care duty on insurance producers, including agents)
- Phoenix Insurance Co. v. Rosen, 242 Ill. 2d 48 (Ill. 2011) (standards for de novo review of dismissal)
- Economy Fire & Casualty Co. v. Bassett, 170 Ill. App. 3d 765 (Ill. App. Ct.) (agent duties traditionally owed to insurer)
- Kanter v. Deitelbaum, 271 Ill. App. 3d 750 (Ill. App. Ct.) (broker fiduciary duties to customers)