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Case Name Virginia Surety Co. v. Adjustable Forms, Inc.
Date 05/16/2008
Note The Virginia Surety policy did not provide coverage for worker's injury does not violate the public policy surrounding the IIGF's creation since the income relating to premium payments for coverage at the River East project was not included in Virginia Surety's income.
Citation 1-07-2663
WCC Citation WCC 2212008 IL
JUSTICE GALLAGHER delivered the opinion of the court: Defendant Illinois Insurance Guaranty Fund (IIGF) appeals the trial court's granting of summary judgment in favor of Virginia Surety Company, Inc. (Virginia Surety). The IIGF then proceeded to seek reimbursement from Virginia Surety for the benefits paid and defense costs incurred in defending the action against Adjustable Forms. Virginia Surety asserted that Adjustable Forms selected Reliance and not Virginia Surety to pay workers' compensation coverage to Hardrys and to defend the underlying action. Virginia Surety also asserted that Adjustable Forms breached the policy's terms because Adjustable Forms failed to notify Virginia Surety immediately of the injury and to promptly forward the litigation documents. Virginia Surety filed a motion for summary judgment on April 18, 2007, asserting that the uncontested facts demonstrate that Virginia Surety did not provide workers' compensation coverage to Adjustable Forms relating to the River East project.

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