| ||||
| Public Act 099-0368 | ||||
| ||||
| ||||
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.
| ||