In a recent article for Law360, BatesCarey partner Matthew Fortin explores several pivotal insurance law decisions from Illinois courts in Q3 2025. The piece highlights how appellate and federal courts are shaping the interpretation of appraisal clauses, indemnity obligations, pollution exclusions and occupancy requirements in insurance policies.

Key takeaways include:

• Appraisal Scope Clarified: The Illinois Appellate Court’s decision in Zhao v. State Farm confirms that disputes over the extent of damage from a covered loss fall within the scope of appraisal, aligning with prior federal rulings.
• Indemnity and Settlement Language: In ISMIE Mutual Insurance Co. v. Pergament, the court ruled that an insurer had no duty to indemnify when the insured assigned rights instead of paying a settlement, distinguishing it from the precedent set in Guillen.
• Pollution Exclusion Under Review: The Seventh Circuit certified a question to the Illinois Supreme Court in Griffith Foods v. National Union, asking whether emissions permitted by environmental regulations are excluded under standard-form CGL policies.
• Occupancy Requirements Upheld in Commercial Policies: Following Galarza, which invalidated such requirements in personal policies, the Seventh Circuit reaffirmed their validity in commercial auto policies in Rahimzadeh v. Ace American.

These developments offer valuable guidance for insurers, policyholders and legal practitioners navigating coverage disputes and policy interpretation in Illinois.

Click here for the full article.

Matt Fortin is a Partner who has spent his career investigating, litigating and advising clients in first-party insurance matters.