Public Act 099-0368
 
SB1781 EnrolledLRB099 07859 MLM 27995 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 Section 537.2 as follows:
 
    (215 ILCS 5/537.2)  (from Ch. 73, par. 1065.87-2)
    Sec. 537.2. Obligation of Fund. The Fund shall be obligated
to the extent of the covered claims existing prior to the entry
of an Order of Liquidation against an insolvent company and
arising within 30 days after the entry of such Order, or before
the policy expiration date if less than 30 days after the entry
of such Order, or before the insured replaces the policy or on
request effects cancellation, if he does so within 30 days
after the entry of such Order. If the entry of an Order of
Liquidation occurs on or after October 1, 1975 and before
October 1, 1977, such obligations shall not: (i) exceed
$100,000, or (ii) include any obligation to refund the first
$100 of any unearned premium claim; and if the entry of an
Order of Liquidation occurs on or after October 1, 1977 and
before January 1, 1988, such obligations shall not: (i) exceed
$150,000, except that this limitation shall not apply to any
workers compensation claims, or (ii) include any obligation to
refund the first $100 of any unearned premium claim; and if the
entry of an Order of Liquidation occurs on or after January 1,
1988 and before January 1, 2011, such obligations shall not:
(i) exceed $300,000, except that this limitation shall not
apply to any workers compensation claims, or (ii) include any
obligation to refund the first $100 of any unearned premium
claim or to refund any unearned premium over $10,000 under any
one policy. If the entry of an Order of Liquidation occurs on
or after January 1, 2011, then such obligations shall not: (i)
exceed $500,000, except that this limitation shall not apply to
any workers compensation claims or (ii) include any obligation
to refund the first $100 of any unearned premium claim or
refund any unearned premium over $10,000 under any one policy.
In no event shall the Fund be obligated to a policyholder or
claimant in an amount in excess of the face amount of the
policy from which the claim arises. For purposes of this Act,
obligations arising under an insurance policy written to
indemnify a permissibly self-insured employer under subsection
(a) of Section 4 of the Workers' Compensation Act for its
liability to pay workers' compensation benefits in excess of a
specific or aggregate retention shall be subject to the
applicable per-claim limits set forth in this Section.
    In no event shall the Fund be liable for any interest on
any judgment entered against the insured or the insolvent
company, or for any other interest claim against the insured or
the insolvent company, regardless of whether the insolvent
company would have been obligated to pay such interest under
the terms of its policy. The Fund shall be liable for interest
at the statutory rate on money judgments entered against the
Fund until the judgment is satisfied.
    Any obligation of the Fund to defend an insured shall cease
upon the Fund's payment or tender of an amount equal to the
lesser of the Fund's covered claim obligation limit or the
applicable policy limit.
(Source: P.A. 96-1450, eff. 8-20-10.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.