Illinois Bars First Party Claim by Innocent Spouse
The Appellate Court has rejected a wife’s contention that she was entitled to coverage for the loss of the family home despite her husband’s conviction for arson. In Aurelius v. State Farm Fire & Cas. Co., No. 2-07-0266 (Ill. App. August 5, 2008), the Second District affirmed a lower court’s declaration that the homeowner’s policy unambiguously barred coverage for first party losses resulting from intentional acts by “you or any person insured under this policy.”
Further, the court ruled that the spouse’s claim was barred by reason of her husband’s lies during an examination under oath given the concealment or fraud language in the policy which states that the policy was void “as to you and any other insured, if you or any other insured under this policy” intentionally conceals or misrepresents facts.
The court also declined to imply ambiguity based on a claimed conflict with language in the liability provisions of the policy which stated that coverage was only precluded for intentional acts of “the insured” and required that the interests of each insured be considered separately, holding that the liability provisions were irrelevant to the scope of coverage for first party losses.
