SUPREME COURT RULES AGAINST UIM STACKING

Illinois’ top court has ruled that the stacking of underinsured-motorist coverage (UIM) was clearly prohibited by two companies’ insurance policies at issue in the case it decided. The Supreme Court’s ruling came in the consolidated cases of Hobbs v. Hartford Insurance Co. of the Midwest and Anheuser v. Prudential Property and Casualty Insurance Co. The court consolidated Hobbs and Anheuser for review, due to the similarity of issues.

In both cases, the plaintiffs contended at trial that the language of their respective policies was ambiguous as to the limits of UIM coverage, thus permitting stacking. In both cases, the trial court agreed with this argument, and both verdicts were affirmed by the appellate court. The defendant insurers appealed to the Illinois Supreme Court, which reversed the decision, stating that when the respective policies were construed as a whole, the unambiguous language of the anti-stacking provisions clearly prohibited stacking of UIM coverage. The court also indicated that anti-stacking clauses do not contravene public policy, and that the Illinois Insurance Code expressly authorizes the use of anti-stacking provisions in motor vehicle insurance policies.