Country Preferred Ins. Co. v. Whitehead

An Illinois driver alleged that she was injured in an accident with an uninsured motorist in Wisconsin in 2007. In Illinois proceedings her insurer, Country Preferred, sought a declaration of noncoverage and she unsuccessfully moved to compel arbitration. Uninsured motorist coverage was part of the policy, but the policy also provided that “any suit, action or arbitration will be barred unless commenced within two years from the date of the accident.” The insurer contended that the driver had not met this requirement, and the circuit court agreed. The appellate court reversed, persuaded by the driver’s theory that public policy was violated by virtue of the fact that the applicable statute of limitations in Wisconsin is three years, unlike Illinois (and the policy), where it is two years. The Illinois Supreme Court reversed, noting that the insured never initiated any type of legal action to settle her claim within the policy’s applicable time frame. There is no public policy violation in requiring the insured driver to bring her suit, action, or arbitration request within two years, the same time period as the Illinois statute of limitations, even though the limitation period in Wisconsin, the state where the accident occurred, is longer.View "Country Preferred Ins. Co. v. Whitehead" on Justia Law