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4773 REVIEW DENIED In an action based on the allegation that a mutual insurance company withheld dividends that policies promised would be paid as declared by the Board of Directors, the Illinois "business judgment rule," requires a court to examine the decision-making process to ensure that it was not tainted by fraud, oppression, illegality, or the like, but not to consider the merits of the board's decision; it was found that the board acted on information it received from the company's management and actuarial department sufficient to support its deliberative process and did not engage in fraud in informing policyholders about when and from what sources dividends might be declared, so the action was properly dismissed. [NOTE: It was determined in a previous appeal that Illinois law should apply. see, Advance Tapes case # P0623.]CitationHILL v STATE FARM (Business Judgment) 166 CA4 1438 [See: State Farm v Superior Court 121 CA4 490, P/AT 9/04]
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