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IN THIS ISSUE

 

NEWSLETTER

Fall 2011

ARTICLES

FIRST DISTRICT REVISITS COOPERATION ISSUES IN RECENT THIRD PARTY LIABILITY CASE

Jonathan W. Goken

Illinois’ First District in Founders Ins. Co. v. Shaikh, 405 Ill.App.3d (1st Dist. 2010) recently examined various issues and obligations surrounding the duty to cooperate in a third- party liability defense case.  Specifically, the Shaikh decision highlights the existence of dual cooperation obligations placed on the insurer and the insured, and provides a fairly detailed historical overview of Illinois’ stance on this topic.

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lATE PAYMENT GENERATES SUIT FOR BAD FAITH AND EMOTIONAL DISTRESS DAMAGES

Rick Hammond

Background

Many insurers are surprised to learn that they can be held liable for bad faith after paying an insured’s claim in full.  In such cases, the insured will often claim that the insurer took too long investigating his or her claim, and claim that the insurer unreasonably or maliciously withheld a claim payment.  This type of allegation is also made when a payment for undisputed damages is withheld by an insurer for no apparent reason.

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INSURER ENTITLED TO A SETOFF OF UIM COVERAGE FOR MED PAY COVERAGE AMOUNT

Moyenda M. Knapp

Can an insurance company that handles a claim by its insured for underinsured motorist (“UIM”) coverage deduct for payments that it made to its insured under other coverage?  In Zdeb v. Allstate Insurance Company, 404 Ill.App.3d 113 (1st Dist. 2010), the Appellate Court of Illinois, First District, upheld the trial court’s decision that Allstate Insurance Company (“Allstate”) was entitled to a setoff of its UIM coverage for the amount paid to its insured under its automobile medical payments (“med pay”) coverage.

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ISSUES REGARDING TREATMENT AT UNLICENSED SURGERY CENTERS

Isaac R. Melton

In Illinois, ambulatory surgical treatment centers are regulated pursuant to the Ambulatory Surgical Treatment Center Act (“the Act”), 210 ILCS 5/1.  Under the Act, an ambulatory surgical treatment center is defined as follows:

“any institution, place or building devoted primarily to the maintenance and operation of facilities for the performance of surgical procedures or any facility in which a medical or surgical procedure is utilized to terminate a pregnancy, irrespective of whether the facility is devoted primarily to this purpose.  Such facility shall not provide beds or other accommodations for the overnight stay of patients; however, facilities devoted exclusively to the treatment of children may provide accommodations and beds for their patients for up to 23 hours following admission. Individual patients shall be discharged in an ambulatory condition without danger to the continued well being of the patients or shall be transferred to a hospital.”

§ 210 ILCS 5/3 (A). 

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