In State Farm Mutual Automobile Insurance Co. v. Illinois Farmers Insurance Co., 2007 WL 2729361 (Ill.,2007), the Illinois Supreme Court heard an appeal from State Farm Mutual Automobile Insurance Co., which brought suit challenging step-down provisions in policies issued by Illinois Farmers Insurance Co. and one of its affiliates.

The step-down provisions reduce the policy liability limits to the minimum required under Illinois' Safety and Family Financial Responsibility Law, 625 ILCS 5/7-203, 7-317(b), when a permissive user is behind the wheel during an accident. According to the court, the minimum coverage for personal injuries is $20,000 per person and $40,000 per accident.

State Farm argued that the provisions violate public policy by decreasing the liability coverage based on the identity of the driver, as the step-down provisions apply to permissive users who are neither family members living in the insured's household nor drivers listed on the policy.