Full Text of SB1781 99th General Assembly
SB1781enr 99TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning 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 537.2 as follows:
| 6 | | (215 ILCS 5/537.2) (from Ch. 73, par. 1065.87-2)
| 7 | | Sec. 537.2. Obligation of Fund. The Fund shall be obligated | 8 | | to the
extent of the covered
claims existing prior to the entry | 9 | | of an Order of Liquidation against
an insolvent company and | 10 | | arising within
30 days after the entry of such
Order, or before | 11 | | the policy expiration date if less than 30 days after
the entry | 12 | | of such Order, or before the insured replaces the policy or on
| 13 | | request effects cancellation, if he does so within 30 days | 14 | | after the entry
of such Order. If the entry of an Order of | 15 | | Liquidation occurs on or after
October 1, 1975 and before | 16 | | October 1, 1977, such obligations shall not:
(i) exceed | 17 | | $100,000, or (ii)
include any obligation to refund the first | 18 | | $100 of any unearned premium
claim; and if the entry of an | 19 | | Order of Liquidation occurs on or after October
1, 1977 and | 20 | | before January 1, 1988, such obligations shall
not: (i) exceed
| 21 | | $150,000, except that this limitation shall not apply to any | 22 | | workers compensation
claims, or (ii)
include any obligation to | 23 | | refund the first
$100 of any unearned premium claim; and if the |
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| 1 | | entry of an Order of
Liquidation occurs on or after January 1, | 2 | | 1988 and before January 1, 2011, such obligations shall not:
| 3 | | (i) exceed $300,000, except that this limitation shall not | 4 | | apply to any
workers compensation claims, or (ii) include any | 5 | | obligation to refund the
first $100 of any unearned premium | 6 | | claim or to refund any unearned premium
over $10,000 under any | 7 | | one policy. If the entry of an Order of Liquidation occurs on | 8 | | or after January 1, 2011, then such obligations shall not: (i) | 9 | | exceed $500,000, except that this limitation shall not apply to | 10 | | any workers compensation claims or (ii) include any obligation | 11 | | to refund the first $100 of any unearned premium claim or | 12 | | refund any unearned premium over $10,000 under any one policy. | 13 | | In no event shall the Fund be
obligated to a policyholder or | 14 | | claimant in an amount in excess
of the face amount of the | 15 | | policy from which the claim arises. For purposes of this Act, | 16 | | obligations arising under an insurance policy written to | 17 | | indemnify a permissibly self-insured employer under subsection | 18 | | (a) of Section 4 of the Workers' Compensation Act for its | 19 | | liability to pay workers' compensation benefits in excess of a | 20 | | specific or aggregate retention shall be subject to the | 21 | | applicable per-claim limits set forth in this Section.
| 22 | | In no event
shall the Fund be liable for any interest on
| 23 | | any
judgment entered against the insured or the insolvent | 24 | | company, or for any
other
interest claim against the insured or | 25 | | the insolvent company, regardless of
whether the insolvent | 26 | | company would have been obligated to pay such interest
under |
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| 1 | | the terms of its policy. The Fund shall be liable for interest | 2 | | at the
statutory rate on money judgments entered against the | 3 | | Fund until the judgment
is satisfied.
| 4 | | Any obligation of the Fund to defend an insured shall cease | 5 | | upon the
Fund's payment or tender of an amount equal to the | 6 | | lesser of the Fund's
covered claim obligation limit or the | 7 | | applicable policy limit.
| 8 | | (Source: P.A. 96-1450, eff. 8-20-10.)
| 9 | | Section 99. Effective date. This Act takes effect upon | 10 | | becoming law.
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