Public Act 099-0387
SB1782 EnrolledLRB099 07860 MLM 27996 b

    AN ACT concerning insurance.
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
    Section 5. The Illinois Insurance Code is amended by
changing Sections 537.4 and 546 as follows:
    (215 ILCS 5/537.4)  (from Ch. 73, par. 1065.87-4)
    Sec. 537.4. Fund assumes obligations of insolvent
companies. The Fund shall be deemed the insolvent company to
the extent of the Fund's obligation for covered claims and to
such extent shall have all rights, duties, and obligations of
the insolvent company, subject to the limitations provided in
this Article, as if the company had not become insolvent, with
the exception that the liquidator shall retain the sole right
to recover any reinsurance proceeds. The Fund's rights under
this Section include, but are not limited to, the right to
pursue and retain salvage and subrogation recoveries on paid
covered claim obligations to the extent paid by the Fund. The
extent of the Fund's subrogation rights and any other rights of
reimbursement with respect to its covered claims payments shall
not be limited as if the Fund were the insolvent company, but
shall be determined independently by taking into account the
Fund's rights under Section 546 of this Article.
(Source: P.A. 89-97, eff. 7-7-95.)
    (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. 89-97, eff. 7-7-95; 90-499, eff. 8-19-97.)
    Section 98. Applicability. This amendatory Act applies to
pending actions as well as actions commenced on or after the
effective date of this amendatory Act of the 99th General
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 08/17/2015