State Farm Mutual Automobile Insurance Company v. Illinois Farmers Insurance Company

Chief Justice Thomas and Justices Freeman, Fitzgeraid, Kilbride, Garman, and Burke concurred in the judgment and opinion.

OPINION

The issue in this case is whether the “step-down” provisions, which reduce the policy limits for permissive users, of several automobile liability policies issued by Illinois Farmers Insurance Company and one of its subsidiaries, Mid-Century Insurance Company (Farmers), to Illinois policyholders are void and unenforceable because they violate Illinois public policy. The circuit court of Cook County found the “step-down” provisions were contrary to public policy and,…