APPELLATE COURT OF ILLINOIS, FIRST DISTRICT, FOURTH DIVISION
Inter-Insurance Exchange of the Chicago
Motor Club, Third-Party, Defendant-Appellant)
505 N.E.2d 1051, 153 Ill. App. 3d 163, 106 Ill. Dec. 260 1987.IL.126
Appeal from the Circuit Court of Cook County; the Hon. Paul F. Elward, Judge, presiding.
Rehearing Denied March 30, 1987.
Justice Linn delivered the opinion of the court. Johnson and Jiganti, JJ., concur.
DECISION OF THE COURT DELIVERED BY THE HONORABLE JUDGE LINN
Third-party defendant, Inter-Insurance Exchange of the Chicago Motor Club (Exchange), brings this appeal seeking reversal of a trial court's order granting summary judgment in favor of defendant third-party plaintiff, Clarence Allandslee, and against Exchange. Allandslee filed his third-party action after Exchange refused to defend and/or indemnify Allandslee in a lawsuit brought by plaintiff, Tina Ledbetter. Allandslee had previously purchased an automobile liability insurance policy from Exchange, and an accident resulting in the Ledbetter lawsuit fell within the coverage provided by the policy.
After some preliminary discovery, Allandslee moved for summary judgment claiming that no genuine issue of material fact existed and that he was entitled to judgment as a matter of law because: (1) Allandslee had complied with his obligations under the policy by making all of the payments due in a timely fashion; (2) the policy was not effectively cancelled by Exchange; and (3) that as a result, the policy Allandslee purchased from Exchange was in full force and effect at the time of the Ledbetter accident. Thus, according to Allandslee's summary judgment motion, Exchange was obligated to defend and/or indemnify Allandslee in the Ledbetter lawsuit.
Exchange argued, on the other hand, that it had previously cancelled Allandslee's insurance policy and that consequently, it owed no duty whatsoever to Allandslee.
After considering the parties' respective briefs and oral arguments, the trial court ruled in favor of Allandslee and ordered Exchange to defend and/or indemnify Allandslee in the Ledbetter lawsuit.
Exchange now brings this appeal contending: (1) that the trial court erred in finding that Allandslee had paid all of the premiums due Exchange, and (2) that the trial court erred in ruling that the Exchange had not effectively cancelled Allandslee's insurance policy.
In early April 1979, Allandslee applied for auto liability insurance with the Lincoln Towers Insurance Agency, Inc. (Lincoln). Lincoln is a broker for the "Illinois Automobile Insurance Plan." Apparently, several insurers have an agreement or plan whereby certain applications for insurance are placed into a pool and thereafter distributed evenly among the insurers. The insurer to which the risk is ultimately ...