Docket No. 108038.
THE STATE OF ILLINOIS
KENNETH W. SCHULTZ, Appellee, v. ILLINOIS FARMERS
INSURANCE COMPANY, Appellant.–ILLINOIS FARMERS
INSURANCE COMPANY, Appellant, v. BARBARA WEGLARZ
Opinion filed March 18, 2010.
JUSTICE KARMEIER delivered the judgment of the court, with
Chief Justice Fitzgerald and Justices Freeman, Thomas, Kilbride,
Garman, and Burke concurred in the judgment and 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 under the policies’ UIM provisions than they did for
purposes of liability and UM coverage. In the first case, Schultz v.