Illinois Insurance Guaranty Fund v. Evanston Paper and Paper Shredding Co.

This case concerns the consequences of a premium finance company’s cancellation of insurance allegedly in violation of the finance company’s statutory duties. We hold that if the insured grants the finance company the power to cancel the insurance contract, the insurer may cancel the contract at the finance company’s behest. If the finance company has violated its statutory duties by requesting cancellation of the insurance, the insured must seek reparation from the finance company and not the insurer, who has no continuing duty to insure under the cancelled contract.

On December 15, 1983,…