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92_HB5932 LRB9214930JSpc 1 AN ACT relating to insurance. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois Insurance Code is amended by 5 changing Section 551 as follows: 6 (215 ILCS 5/551) (from Ch. 73, par. 1065.101) 7 Sec. 551. Mandatory stay of proceedings. All proceedings 8 in which the insolvent insurer is either a party or is 9 obligated to defend a party in any court in this State 10
arising out of a claim under a policy of insurance written by11 an insolvent companyshall be automatically stayed for 120 12 days (and any such additional time thereafter as may be 13 determined to be appropriate by the trial court in which a 14 given case is pending) from the date of the entry of the 15 Order of Liquidation to permit proper defense by the Fund, or 16 a similar organization in another state, of all such pending 17 causes of action. The automatic 120-day stay provided in this 18 Section may be implemented in the following fashion: (1) for 19 cases in any federal court sitting in this State, in 20 accordance with the applicable federal rules of procedure, 21 including any applicable local rules; or (2) for all cases 22 within a Judicial Circuit of the Circuit Court, by a general 23 order to be issued upon the filing by the Fund or by any 24 insured of the insolvent company of a suggestion with the 25 Chief Judge or equivalent judicial official with 26 administrative powers in each Judicial Circuit, containing 27 appropriate verification of the entry of an Order of 28 Liquidation against the insolvent insurer. 29 (Source: P.A. 92-77, eff. 7-12-01.) 30 Section 99. Effective date. This Act takes effect upon -2- LRB9214930JSpc 1 becoming law.
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