No Defense for Home Sellers Accused of Misleading Buyers

OTTAWA, Ill. - An Illinois appellate court has reversed a trial court order mandating coverage and held that a couple's alleged misrepresentations about the condition of their home are not "occurrences" that would mandate a defense by their insurer. Rock v. State Farm Fire and Casualty Co., No. 3-08-0915 (Ill. App. Ct., 3rd Dist.).

The Third District Appellate Court of Illinois held on Oct. 20 that State Farm Fire and Casualty Co. does not have to reimburse policyholders George and Martha Rock, despite the fact that a jury exonerated them of the misrepresentation claims.

The Rocks sought coverage from State …