Notice of Circumstance
Federal Insurance Company sought to recover from Lexington Insurance Company payments made on behalf of its insured in a personal injury lawsuit. The lower court held that the insured failed to comply with the Notice of Circumstance provision in the policy and therefore was precluded from coverage under the Lexington policy.
To determine if notice is sufficient the court must determine whether the notice given objectively complied with the potential claim notice provision in the policy.
On appeal, Federal claims that the notice was sufficient based upon an oral notice by telephone and a fax to the claim service. However, testimony in the case revealed that there was no evidence of notification by phone, or writing that would place Lexington on notice of the accident.
The court held that Federal is not entitled to any reimbursement from Lexington based upon the insured’s failure to comply with the notice provision found in Lexington’s policy.
406 Ill.App.3d 895, 941 N.E.2d 996 (Ill.App. 1 Dist., 2011).
