(215 ILCS 5/540.8) (from Ch. 73, par. 1065.90-8)
Sec. 540.8.
The plan of operation shall establish the procedures for
disposition of monies reimbursed from the estate of the insolvent company.
(Source: P.A. 85-576.)
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(215 ILCS 5/540.9) (from Ch. 73, par. 1065.90-9)
Sec. 540.9.
The plan of operation may contain additional provisions necessary or
proper for the execution of the powers, duties and obligations of the Fund.
(Source: P.A. 77-305 .)
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(215 ILCS 5/541) (from Ch. 73, par. 1065.91)
Sec. 541.
The plan of operation may provide that any or all powers and duties
of the Fund, except those under Sections 537.6 and 538.3 may be
delegated to a corporation, association, or other organization which
performs or will perform functions similar to those of this Fund, or its
equivalent, in 2 or more states.
A delegation under this Section shall take effect only with
the approval of both the board of directors and the Director, and may be
made only to a corporation, association, or organization which extends
protection not substantially less favorable and effective than that
provided by this Article.
(Source: P.A. 80-827.)
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(215 ILCS 5/543) (from Ch. 73, par. 1065.93)
Sec. 543.
Duties
and obligations of the Director.
The Director shall have the duties and obligations enumerated in
Sections 543.1 through 543.3.
(Source: P.A. 77-305.)
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(215 ILCS 5/543.1) (from Ch. 73, par. 1065.93-1)
Sec. 543.1.
The Director shall serve a copy of the complaint seeking an
Order of Liquidation with a finding of insolvency against a domestic member
company on the Fund at the same time that such complaint is filed with the circuit court
or shall forward to the Fund notice of the filing of such a complaint
against a foreign or alien member company promptly upon receipt thereof.
The Director also shall serve on the Fund a copy of an Order of
Liquidation with a finding of insolvency against a domestic member company
immediately after it is entered by the circuit court or shall forward to
the Fund a copy of such order against a foreign or alien member company
promptly upon receipt thereof.
(Source: P.A. 85-576.)
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(215 ILCS 5/543.2) (from Ch. 73, par. 1065.93-2)
Sec. 543.2.
The Director shall, upon request of the board of directors, provide the
Fund with a statement of the net direct written premiums of each member
company for the preceding calendar year for which annual statements have
been filed with the Director.
(Source: P.A. 77-305.)
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(215 ILCS 5/543.3) (from Ch. 73, par. 1065.93-3)
Sec. 543.3.
The liquidator of an insolvent company shall notify the
policyholders of the insolvent company who are residents
of this State of the entry of an Order of Liquidation against the company
and of their rights under this
Article. Such notification shall be mailed to the last known
address of such policyholders,
where available, but if sufficient information for notification by mail is
not available, notice by publication in a newspaper of general circulation
shall be sufficient. If the insolvent company is domiciled in another
state and the liquidator fails to give notice which satisfies the purposes
of this Section, such notice shall be given by the Director as ancillary
receiver or if the insolvent company is domiciled in another state and there
is no ancillary receiver in this State, the Fund shall give such notice
provided the necessary information is made available to the Fund by the liquidator.
The form of the notice given by the Director as either liquidator or ancillary
receiver shall be submitted to the Fund for its approval prior to mailing
or publication.
(Source: P.A. 85-576.)
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(215 ILCS 5/544) (from Ch. 73, par. 1065.94)
Sec. 544.
Powers of the Director.
The Director shall either (a) suspend or revoke, after notice
and hearing pursuant to Sections 401, 402 and 403 of this Code, the
certificate of authority to do business in this State of any member company
which fails to pay an assessment when due or fails to comply with the plan
of operation, or (b) levy a fine on any member
company which fails to pay an assessment when due. Such fine shall not
exceed 5% per month of the unpaid assessment, except that no fine shall be
less than $200 per month.
(Source: P.A. 93-32, eff. 7-1-03.)
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(215 ILCS 5/545) (from Ch. 73, par. 1065.95)
Sec. 545. Effect of paid claims.
(a) Every insured or claimant seeking the
protection of this Article shall cooperate with the Fund to the same
extent as such person would have been required to cooperate with the
insolvent company. The Fund shall have all the rights, duties and
obligations under the policy to the extent of the covered claim payment,
provided the Fund shall have no cause of action against the
insured of the insolvent company for any sums it has paid out except
such causes of action as the insolvent company would have had if such
sums had been paid by the insolvent company and except as provided in
subsection (d) of this Section. Any person recovering under this Article and any insured whose liabilities are satisfied under this Article shall be deemed to have assigned the person's or insured's rights under the policy to the Fund to the extent of his or her recovery or satisfaction obtained from the Fund's payments.
(b) The Fund and any similar organization in another state shall be
recognized as claimants in the liquidation of an insolvent company for any
amounts paid by them on covered claims obligations as determined under this
Article or similar laws in other states and shall receive dividends at the
priority set forth in paragraph (d) of subsection (1) of Section
205 of this
Code; provided that if, at the time that the liquidator issues a cut-off notice to the Fund in anticipation of closing the estate, a reserve has been established by the Fund, or any similar organization in another state, for the amount of their future administrative expenses and loss development associated with unpaid reported pending claims, these reserves will be deemed to have been paid as of the date of the notice and payment shall be made accordingly.
The liquidator of an insolvent company shall be bound by
determinations of covered claim eligibility under the Act and by settlements
of claims made by
the Fund or a similar organization in
another state on the receipt of certification of such payments, to the extent
those
determinations or settlements satisfy obligations of the Fund, but the receiver
shall not be bound in any way by those determinations or settlements to the
extent that there remains a claim in the estate for amounts in excess of the
payments by the Fund.
In submitting their claim for covered claim payments the Fund and any
similar organization in another state shall not be subject to the
requirements of Sections 208 and 209 of this Code and shall not be affected
by the failure of the person receiving a covered claim payment to file a proof
of claim.
(c) The expenses of the Fund and of any similar
organization in any other state, other than expenses incurred in the
performance of
duties under Section 547 or similar duties under the
statute governing a similar organization in another state, shall
be accorded priority over all claims
against the estate, except as provided for in paragraph (a) of subsection (1) of
Section 205 of this Code. The liquidator shall make prompt reimbursement
to the Fund and any similar organization for such expense payments.
(d) The Fund has the right to recover from the following persons the amount
of any covered claims (as determined without regard to the exemption in paragraph (iv) of subsection (b) of Section 534.3) and allocated claims expenses which the Fund paid or
incurred on behalf of such person in satisfaction, in whole or in part, of
liability obligations of such person to any other person:
(i) any insured whose net worth on December 31 of the | ||
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(ii) any insured who is an affiliate of the insolvent | ||
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The Fund may also, at its sole discretion and without assumption of any ongoing duty to do so, pay any workers compensation claims or any other third-party claims or any cybersecurity insurance obligations covered by a policy of an insolvent company on behalf of a high net worth insured as defined in paragraph (iv) of subsection (b) of Section 534.3. In that case, the Fund shall recover from the high net worth insured under this Section for all amounts paid on its behalf, all allocated claim adjusted expenses related to such claims, the Fund's attorney's fees, and all court costs in any action necessary to collect the full amount to the Fund's reimbursement under this Section. (Source: P.A. 103-113, eff. 6-30-23.)
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(215 ILCS 5/546) (from Ch. 73, par. 1065.96)
Sec. 546. Other insurance.
(a) An insured or claimant shall be required first to exhaust all
coverage provided by any other insurance policy, regardless of whether or not
such other insurance policy was written by a member company, if the claim under
such other policy arises from the same facts, injury, or loss that gave rise to
the covered claim against the Fund. The Fund's obligation under Section 537.2
shall be reduced by the amount recovered or recoverable, whichever is greater,
under such other insurance policy. Where such other insurance policy provides
uninsured
or underinsured motorist coverage, the amount recoverable shall be deemed to be
the full applicable limits of such coverage. To the extent that the Fund's
obligation under Section 537.2 is reduced by application of this Section, the
liability of the person insured by the insolvent insurer's policy for the claim
shall be reduced in the same amount. If the Fund pays a covered claim without the exhaustion of all other coverage that could have been exhausted under this Section, the Fund shall have an independent right of recovery against each insurer whose coverage was not exhausted in the amount the Fund would not have had to pay if that insurer's coverage had been exhausted first.
(b) Any insured or claimant having a claim which may be recovered under more
than one insurance guaranty fund or its equivalent shall seek recovery
first from the Fund of the place of residence of the insured except that
if it is a first party claim for damage to property with a permanent
location, he shall first seek recovery from the Fund of the location of
the property; if it is a workers' compensation claim, he shall first
seek recovery from the Fund of the residence of the claimant. Any
recovery under this Article shall be reduced by the amount of the
recovery from any other insurance guaranty fund or its equivalent.
(Source: P.A. 99-387, eff. 8-17-15.)
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(215 ILCS 5/547) (from Ch. 73, par. 1065.97)
Sec. 547. Prevention of insolvencies. To aid in the detection and prevention of company insolvencies:
(a) The board of directors may, upon majority vote, | ||
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(b) The board of directors may prepare a report on | ||
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(c) The Director may disclose to the Fund the | ||
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(Source: P.A. 102-929, eff. 5-27-22.)
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(215 ILCS 5/548) (from Ch. 73, par. 1065.98)
Sec. 548. Examination of the Fund. The Fund shall be subject to examination and regulation by the Director.
The board of directors shall, not later than April 30 of each year, submit
a financial report for the preceding calendar year in a form approved by
the Director.
(Source: P.A. 99-388, eff. 1-1-16 .)
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(215 ILCS 5/549) (from Ch. 73, par. 1065.99)
Sec. 549.
Tax
exemption.
The Fund shall be exempt from payment of all fees and all taxes levied
by this State or any of its subdivisions.
(Source: P.A. 77-305.)
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(215 ILCS 5/550) (from Ch. 73, par. 1065.100)
Sec. 550.
Immunity.
There shall be no liability on the part of and no cause of action of any
nature shall arise against any member company, the Fund or their agents or
employees, the board of directors, or the Director or his representatives
for any action taken or omitted by them in the performance of their powers
and duties under this Article.
(Source: P.A. 77-305.)
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(215 ILCS 5/551) (from Ch. 73, par. 1065.101)
Sec. 551.
Stay of proceedings.
All proceedings arising out of a claim under a policy of insurance written by
an insolvent company shall be stayed for 120 days from the date of the entry of
the Order of Liquidation to permit proper defense by the Fund of all such
pending causes of action.
(Source: P.A. 92-77, eff. 7-12-01.)
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(215 ILCS 5/552) (from Ch. 73, par. 1065.102)
Sec. 552.
All provisions of this Article shall be interpreted in
accordance with and pursuant to those Sections of Article XIII of this Code
which may be applicable.
(Source: P.A. 85-576.)
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(215 ILCS 5/553) (from Ch. 73, par. 1065.103)
Sec. 553.
Severability.
If any provision of this Article or the application thereof to any
claimant, company or circumstance is held invalid, such invalidity does not
affect other provisions or applications of this Article which can be given
effect without the invalid application or provision, and to this end the
provisions of this Article are declared to be severable.
(Source: P.A. 77-305.)
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