Michael “Mickey” Passman examines an Illinois federal judge’s recent ruling in a coverage dispute case, Tracy Holdings LLC v. West Bend Insurance Co., in his October 2018 Insurance Law IICLE Flashpoints column. 

At issue was the value of insurers’ use of “catch all” reservation of rights statements in denial letters, particularly in avoiding application of “mend the hold” and waiver doctrines under Illinois law in ensuing litigation. In Tracy Holdings, the U.S. District Court for the Central District of Illinois rejected the insured’s mend-the-hold and waiver argument, explaining that these doctrines did not bar an insurance company from adding a defense after being sued. 

The full piece from the Illinois Institute for Continuing Legal Education will be available here for a limited time.