Page 22 - Reservation of Rights - Special Edition

ILLINOIS
Notice
An insurer that wishes to assert its nonliability under the policy must notify the insured “without delay.” A notifica- tion is “without delay” if it is communicated with reasonable promptness. A delay is reasonable if it is not so long as to prevent the insured from taking such action as would save the insured from loss and damages. Apex Mut. Ins. Co. v. Christner, 240 N.E.2d 742, 753 (Ill. App. 1968) (two months was “without delay”).
There is no material difference between providing the in- sured with notice by serving a reservation of rights or filing a declaratory judgment action. Apex, 240 N.E.2d at 749. See also, Grinnell Mut. Reinsurance Co. v. LaForge, 863 N.E.2d 1132, 1140 (Ill. App. 2006) (insurer’s filing of declaratory judgment action 25 days after underlying complaint filed
was not untimely); Twin City Fire Ins. Co. v. Old World Trad- ing Co., 639 N.E.2d 584, 591 (Ill. App. 1993) (four months was reasonable where the underlying suit was pending for 32 months before the insured notified the insurer and at least 41 depositions had already been taken); Aetna Cas. & Sur. Co. v. O’Rourke Bros., Inc., 776 N.E.2d 588, 596-597 (Ill. App. 2002) (insurer’s filing of declaratory judgment action 11 months after learning of complaint filed against insured was untimely).
It is an improper claims practice for an insurance company to fail to affirm or deny coverage of a claim within a reasonable time after proof of loss statements have been completed, without just cause. 215 ILCS 5/154.6(i).
Content
A proper reservation of rights letter is one that adequately informs the insured of the insurer’s coverage defenses and
2018 ReseRvation of Rights - special edition
ILLINOIS / INDIANA–Northern
Doherty & Progar was founded to provide personalized, superior legal representation in the Midwest. We are an AV-rated law firm and concentrate our practice solely on litigation. Each of our partners has more than twenty-five years of experience in all phases of litigation, from resolution prior to suit through jury trials involving tens of millions of dollars.
While the specific types of lawsuits we have handled have varied over the years, there is a core trait evident in our collective experience: our commitment to providing our clients with superior legal representation coupled with unsurpassed efforts as their advocates.
Our firm concentrates on advising and representing insurance carriers, their insureds, and businesses in all types of matters. We represent our clients in suits pending in state and federal courts, in claims filed with state and federal administrative agencies, and in negotiations, mediation, arbitration, and other alternative dispute resolution formats.
We take pride in our services, which include advice and counsel on all matters within our areas of expertise. We consider such efforts to be central to the establishment of a partnering relationship with our clients.
Practice Areas: Common Carrier and Innkeeper Liability; Construction Liability; Directors and Officers Liability; Dram Shop Liability; Personal and Commercial Liability; Product Liability; Professional Liability; Transportation Liability; Workers’ Compensation; Insurance Coverage; Employment Practices and Discrimination; Medical Negligence; Nursing Home Litigation; Municipal Law; Toxic Torts; Errors and Omissions; Appeals; Child Care Litigation; Class Actions.
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