Universal Underwriters Group v. Pierson

When an auto dealer allows a customer to drive one of its vehicles and an accident results, Illinois law clearly provides that the dealer’s insurer must cover damages inflicted on third parties, notwithstanding any policy language to the contrary. The parties to the instant appeal ask us to decide whether applicable statutory and contractual principles require the dealer’s insurer to defend and indemnify the driver for damages to the dealer’s car. The trial court found no such requirement, and we affirm.

Plaintiff Universal Underwriters Group, as subrogee of its insured, Benoy Motor Sales,…