Policy benefits stacking limits upheld (US)
In April 2026 an Illinois appeal court upheld the “Other Insurance” anti-stacking provisions in three insurance policies which limited liability to the highest limit of liability under any one of the policies.
The plaintiff personally and on behalf of the estate of his deceased wife, who were both injured in a motor accident, claimed under three separate underinsured motorist policies held by them. The policies had limits of USD1 million, USD500 000 and USD500 000, the highest limit being the USD1 million.
The two relevant non-stacking clauses read:
“If this policy and any other policy providing similar insurance apply to the same accident, the maximum limit of liability under all the policies shall be the highest limit of liability under any one policy.”.
“Any recovery for damages under this policy or any other policy issued by us may be equal but not exceed the highest applicable limits for any one vehicle under this or any other insurance providing coverage on either a primary or excess basis.”
The court held that the clauses are unambiguous. Combining the anti-stacking language with the proportionate liability provisions in both policies, the maximum the plaintiff could receive was a total of USD1 million with each of the insurers whose policies were liable for a proportionate share of USD1 million.
The payment of multiple premiums was of no consequence where the intent of the parties to the insurance contracts was manifested in the clear and unambiguous language of the anti-stacking provisions.
[Thomas T.D. Polk v Progressive Northern Insurance Company and Secura Supreme Insurance Company in the United States Court of Appeals for the Seventh Circuit, case no 25-1553 (02 April 2026)]
Polk v Progressive Northern Insurance Company, No. 25-1553 (7th Cir. 2026) :: Justia