When Insurer Uses Extrinsic Evidence to Prove Facts Establishing Exclusion There is No Need to Defend or Indemnify

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The trial court entered an order denying Old Republic Insurance Company’s (Old Republic) motion for summary judgment against defendants Pro-Agr, Inc., (Pro-Agr) and Kyle Dowdy. The trial court found Old Republic had a duty to defend and provide insurance coverage to Pro-Agr in  Kyle Dowdy’s underlying personal injury claim against Pro-Agr for bodily injuries Dowdy suffered during a crash while piloting Pro-Agr’s airplane. In Old Republic Insurance Company v. Pro-Agr, Inc. and Kyle Dowdy, 2021 IL App 200340-U, Nos. 4-20-0340, 4-20-0365, Court of Appeals of Illinois, Fourth District (July 30, 2021) the Court of Appeals resolved the dispute.

ZALMA OPINION

The plain language of the policy clearly provided that it will not cover claims for bodily injury brought by a pilot in Dowdy’s situation and as an insured. It is not unreasonable or draconian for an insurance company to offer its customers an insurance policy that does not cover a claim like Dowdy’s. The Illinois Court of Appeal properly refused to limit its decision on coverage to the underlying pleading but considered the evidence and admissions that made it impossible for coverage for a defense or indemnity to apply.