CERTAIN UNDERWRITERS v. PROF. UNDERWRITERS

No. 2-05-0888.

848 N.E.2d 597 (2006)

364 Ill. App.3d 975

302 Ill.Dec. 298

THOSE CERTAIN UNDERWRITERS AT LLOYD'S, Individually and Severally Subscribing to Policy Certificate Number 03HPOM210, Plaintiffs-Appellees, v. PROFESSIONAL UNDERWRITERS AGENCY, INC., PUA Professional Insurance Services, Ramkrishna H. Chandarana, and Sandip R. Chandarana, Defendants-Appellants.

Appellate Court of Illinois, Second District.

May 3, 2006.


Attorney(s) appearing for the Case

David E. Stevenson, Alyssa M. Campbell, Anthony P. Katauskus, Williams, Montgomery & John, Ltd., Chicago, for Ramkrishna H. Chandarana, Sandip R. Chandarana, Professional Underwriters Agency, Inc., PUA Professional Insurance Services.

Larry S. Hoellwarth, Allan P. Jacobus, Adam R. Bunge, Karbal Cohen Economou Silk & Dunne, LLC, Chicago, for Those Certain Underwriters at Lloyd's.


Justice O'MALLEY delivered the opinion of the court:

The lone issue presented in this appeal is whether an insurer that has a pending claim for rescission of an insurance contract must initially provide to the insured a defense in an underlying action, during the pendency of the rescission action. Under the circumstances presented here, we hold that an insurer's obligation to act on its duty to defend is delayed until the conclusion of the rescission action. If the...

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