Case Accrues on Date Insured Receives the Policy
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Case Accrues on Date Insured Receives the Policy

In the context of a coverage dispute, insureds brought a counterclaim against their insurer and a third-party complaint against their insurance agent alleging negligent failure to procure proper insurance coverage. The insureds had requested a policy equal to their previous policy with another carrier, which would have provided coverage. The trial court dismissed the insured’s claims as untimely. The appellate court reversed based on the agent’s fiduciary duty that was more significant than the insureds’ obligation to read their policy. It placed accrual of the limitations period when an insured knew or should have know of the injury. The Illinois Supreme Court disagreed holding the insureds' cause of action for negligent failure to procure insurance accrued, and two-year limitations period began to run, when the insureds first purchased their policy and had the opportunity to read it.

American Family Mutual Insurance Company v Krop