Ullman v. Wolverine Ins. Co‪.‬

Rehearing denied December 3, 1970. On May 23, 1967, the plaintiff and appellant, Phyllis J. Ullman, the executrix of the estate of Maurice Ullman, brought an action for declaratory judgment in the circuit court of Rock Island against Wolverine Insurance Company, the appellee (Wolverine, hereafter). It sought to determine whether Wolverine could properly deduct workmen's compensation payments made to an insured by his employer in determining Wolverine's liability to the insured under an insurance policy providing for uninsured motorists coverage. This coverage is required by Illinois law to be provided in all automobile insurance policies issued in this State. (Ill. Rev. Stat. 1969, ch. 73, par. 755a.) The circuit court, after hearing evidence, supported the plaintiff's view and held that the provision in Wolverine's policy which permitted the deduction of workmen's compensation payments from Wolverine's uninsured motorist liability reduced the minimum coverage below $10,000, which is required by statute (see Ill. Rev. Stat. 1969, ch. 73, par. 755a and Ill. Rev. Stat. 1965, ch. 95 1/2, par. 7-203, now Ill. Rev. Stat. 1969, ch. 95 1/2, par. 7A-203), and was consequently void. The Appellate Court for the Third District reversed the judgment of the circuit court (105 Ill. App.2d 408) and we granted the plaintiff leave to appeal to this court.