What’s in a Name? The Importance of Defining Your Client’s Role in Insurance Procurement Matters

In Austin Highlands Dev. Co. v. Midwest Ins. Agency, Inc., the Illinois Appellate Court examined whether a negligence claim was time-barred under the two-year statute of limitations applicable to insurance producers. The court held that, under Section 2-2201 of the Code of Civil Procedure and Illinois Supreme Court precedent, the term “insurance producer” includes both agents and brokers required to be licensed to sell, solicit, or negotiate insurance. Because Midwest qualified as an insurance producer, Austin’s claim accrued when it received the policy and was subject to the two-year limitations period, rendering the action untimely.