PLIllinoishard
An Illinois auto policy contains a properly executed named driver exclusion for the insured's adult son, who has a poor MVR. The son borrows the car and causes a serious accident. How will the policy respond to a third party's bodily injury claim?
ALiability is fully payable up to policy limits because exclusions void public policy
BThe exclusion is enforceable; the carrier owes nothing for losses caused while the excluded driver is operating
Liability is payable up to the statutory minimum 25/50/20 only
DThe carrier must pay and seek reimbursement from the excluded driver personally
Why this is the answer
Illinois recognizes named driver exclusions under 215 ILCS 5/143a-2 when the named insured signs a written exclusion of a specific household driver. The exclusion is enforceable above the statutory minimum financial responsibility limits, but Illinois public policy preserves the mandatory 25/50/20 BI/PD minimums for injured third parties. The carrier therefore owes up to 25/50/20 even when the excluded driver was at the wheel; the exclusion eliminates the excess.
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