Schultz v. Illinois Farmers Insurance

Chief Justice Fitzgerald and Justices Freeman, Thomas, Kilbride, Carman, and Burke concurred in the judgment and opinion.

OPINION

Before us in this appeal are two actions for declaratory judgment presenting a single issue: does Illinois law permit insurers to issue motor vehicle liability policies in which occupants of a covered vehicle are afforded uninsured motorist (UM) coverage but excluded from underinsured (UIM) coverage? Both actions involved motor vehicle liability policies containing provisions which purported to eliminate UIM coverage for occupants by defining “insureds” more narrowly…