Chapter 215 — INSURANCE

(215 ILCS 5/529.4) (from Ch. 73, par. 1065.76-4) Sec. 529.4. Whenever the fund shall assess insurers in accordance with this Section, each insurer may charge an additional premium on every property insurance policy issued by it insuring property in this state, the effective date …

(215 ILCS 5/529.5) (from Ch. 73, par. 1065.76-5) Sec. 529.5. The Industry Placement Facility shall compile an annual operating report, and publish such report in at least 2 newspapers having widespread circulation in the State, which report shall include: (1) a description of the…

(215 ILCS 5/53) (from Ch. 73, par. 665) (Section scheduled to be repealed on January 1, 2027) Sec. 53. Deposit. (a) A company subject to the provisions of this Article shall make and maintain with the Director for the protection of all creditors, policyholders and policy obligati…

(215 ILCS 5/530) (from Ch. 73, par. 1065.77) Sec. 530. Powers of the Director.) In addition to any powers conferred upon him by this or any other law, the Director is charged with the authority to supervise the Inspection Bureau, the Facility and the Association. In addition the …

(215 ILCS 5/530a) (from Ch. 73, par. 1065.77a) Sec. 530a. The Director of Insurance shall form a task force to review the policy forms and endorsements issued by the Industry Placement Facility on residential property of 5 or more dwelling units. The task force shall consider the…

(215 ILCS 5/531.01) (from Ch. 73, par. 1065.80-1) Sec. 531.01. Title.) This Article is known and may be cited as the Illinois Life and Health Insurance Guaranty Association Law. (Source: P.A. 81-899.)

(215 ILCS 5/531.01a) (from Ch. 73, par. 1065.80-1a) Sec. 531.01a. Existing Liability. Any liabilities of the Association for any member company which was an insolvent insurer as defined by this Article prior to January 1, 1986 shall be determined under the law which was in effect…

(215 ILCS 5/531.02) (from Ch. 73, par. 1065.80-2) Sec. 531.02. Purpose. The purpose of this Article is to protect, subject to certain limitations, the persons specified in paragraph (1) of Section 531.03 against failure in the performance of contractual obligations, under life, h…

(215 ILCS 5/531.03) (from Ch. 73, par. 1065.80-3) Sec. 531.03. Coverage and limitations. (1) This Article shall provide coverage for the policies and contracts specified in subsection (2) of this Section: (a) to persons who, regardless of where they reside (except for non-residen…

(215 ILCS 5/531.04) (from Ch. 73, par. 1065.80-4) Sec. 531.04. Construction. This Article shall be construed to effect the purpose under Section 531.02. (Source: P.A. 96-1450, eff. 8-20-10.)

(215 ILCS 5/531.05) (from Ch. 73, par. 1065.80-5) Sec. 531.05. Definitions. As used in this Act: "Account" means either of the 2 accounts created under Section 531.06. "Association" means the Illinois Life and Health Insurance Guaranty Association created under Section 531.06. "A…

(215 ILCS 5/531.06) (from Ch. 73, par. 1065.80-6) Sec. 531.06. Creation of the Association. There is created a non-profit legal entity to be known as the Illinois Life and Health Insurance Guaranty Association. All member insurers are and must remain members of the Association as…

(215 ILCS 5/531.07) (from Ch. 73, par. 1065.80-7) Sec. 531.07. Board of Directors.) The board of directors of the Association consists of not less than 7 nor more than 11 members serving terms as established in the plan of operation. The insurer members of the board are to be sel…

(215 ILCS 5/531.08) (from Ch. 73, par. 1065.80-8) Sec. 531.08. Powers and duties of the Association. (a) In addition to the powers and duties enumerated in other Sections of this Article: (1) If a member insurer is an impaired insurer, then the Association may, in its discretion …

(215 ILCS 5/531.09) (from Ch. 73, par. 1065.80-9) Sec. 531.09. Assessments. (1) For the purpose of providing the funds necessary to carry out the powers and duties of the Association, the board of directors shall assess the member insurers, separately for each account, at such ti…

(215 ILCS 5/531.10) (from Ch. 73, par. 1065.80-10) Sec. 531.10. Plan of operation. (1)(a) The Association must submit to the Director a plan of operation and any amendments thereto necessary or suitable to assure the fair, reasonable, and equitable administration of the Associati…

(215 ILCS 5/531.11) (from Ch. 73, par. 1065.80-11) Sec. 531.11. Duties and powers of the Director. In addition to the duties and powers enumerated elsewhere in this Article: (1) The Director must do all of the following: (a) Upon request of the board of directors, provide the Ass…

(215 ILCS 5/531.12) (from Ch. 73, par. 1065.80-12) Sec. 531.12. Prevention of Insolvencies. To aid in the detection and prevention of member insurer insolvencies or impairments: (1) It shall be the duty of the Director: (a) To notify the Commissioners of all other states, territo…

(215 ILCS 5/531.13) (from Ch. 73, par. 1065.80-13) Sec. 531.13. Tax offset. In the event the aggregate Class A, B and C assessments for all member insurers do not exceed $3,000,000 in any one calendar year, no member insurer shall receive a tax offset. However, for any one calend…

(215 ILCS 5/531.14) (from Ch. 73, par. 1065.80-14) Sec. 531.14. Miscellaneous provisions. (1) Nothing in this Article may be construed to reduce the liability for unpaid assessments of the insured of an impaired or insolvent insurer operating under a plan with assessment liabilit…

(215 ILCS 5/531.15) (from Ch. 73, par. 1065.80-15) Sec. 531.15. Examination of the Association - Annual Report. The Association shall be subject to examination and regulation by the Director. The board of directors must submit to the Director, not later than the first day of the …

(215 ILCS 5/531.16) (from Ch. 73, par. 1065.80-16) Sec. 531.16. Tax Exemptions.) The Association is exempt from payment of all fees and all taxes levied by this State or any of its subdivisions, except taxes levied on real property. (Source: P.A. 81-899.)

(215 ILCS 5/531.17) (from Ch. 73, par. 1065.80-17) Sec. 531.17. Immunity.) There is no liability on the part of and no cause of action of any nature may arise against any member insurer or its agents or employees, the Association or its agents or employees, members of the board o…

(215 ILCS 5/531.18) (from Ch. 73, par. 1065.80-18) Sec. 531.18. Stay of Proceedings - Reopening Default Judgments.) All proceedings in which the insolvent insurer is a party in any court in this State shall be stayed 180 days from the date an order of liquidation, rehabilitation,…

(215 ILCS 5/531.19) (from Ch. 73, par. 1065.80-19) Sec. 531.19. Prohibited advertisement of action of the Insurance Guaranty Association in sale of insurance. (a) No person, including a member insurer, agent or affiliate of a member insurer shall make, publish, disseminate, circu…

(215 ILCS 5/531.20) Sec. 531.20. Merger of Illinois Health Maintenance Organization Guaranty Association with and into the Illinois Life and Health Insurance Guaranty Association. In order to provide for the merger of the Illinois Health Maintenance Organization Guaranty Associat…

(215 ILCS 5/532) (from Ch. 73, par. 1065.82) Sec. 532. Purpose. (a) The purpose of this Article is to provide a mechanism for the payment of covered claims under certain insurance policies, to avoid excessive delay in payment of covered claims, to avoid financial loss to claimant…

(215 ILCS 5/533) (from Ch. 73, par. 1065.83) Sec. 533. Scope. This Article applies to all of the kinds of insurance written on a direct basis which are included in Class 2 and Class 3 of Section 4 of this Code, except that it shall not apply to: (a) accident and health insurance …

(215 ILCS 5/534) (from Ch. 73, par. 1065.84) Sec. 534. Definitions. For the purposes of this Article, unless the context requires otherwise, the words and phrases defined in Sections 534.1 through 534.9 have the meanings set forth in those Sections. (Source: P.A. 103-113, eff. 6-…

(215 ILCS 5/534.1) (from Ch. 73, par. 1065.84-1) Sec. 534.1. "Fund" means the Illinois Insurance Guaranty Fund created by this Article. (Source: P.A. 77-305.)

(215 ILCS 5/534.2) (from Ch. 73, par. 1065.84-2) Sec. 534.2. "Director" means the Director of Insurance of the State of Illinois. (Source: P.A. 77-305.)

(215 ILCS 5/534.3) (from Ch. 73, par. 1065.84-3) Sec. 534.3. Covered claim; unearned premium defined. (a) "Covered claim" means an unpaid claim for a loss arising out of and within the coverage of an insurance policy to which this Article applies and which is in force at the time…

(215 ILCS 5/534.4) (from Ch. 73, par. 1065.84-4) Sec. 534.4. "Insolvent company" means a company organized as a stock company, mutual company, reciprocal or Lloyds (a) which holds a certificate of authority to transact insurance in this State either at the time the policy was iss…

(215 ILCS 5/534.5) (from Ch. 73, par. 1065.84-5) Sec. 534.5. Member company. "Member Company" means any insurance company organized as a stock company, mutual company, reciprocal or Lloyds, which holds a certificate of authority to transact any kind of insurance in this State to …

(215 ILCS 5/534.6) (from Ch. 73, par. 1065.84-6) Sec. 534.6. "Net direct written premiums" means direct gross premiums written in this State on insurance policies to which this Article applies, less return premiums thereon and dividends paid or credited to policyholders on such d…

(215 ILCS 5/534.7) (from Ch. 73, par. 1065.84-7) Sec. 534.7. Affiliate. An "affiliate" of a specified person means a person who directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with the specified person on December…

(215 ILCS 5/534.8) (from Ch. 73, par. 1065.84-8) Sec. 534.8. "Control" means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, the holding of proxies, b…

(215 ILCS 5/534.9) Sec. 534.9. Cybersecurity insurance. "Cybersecurity insurance" means a type of insurance under Class 2 of Section 4 of this Code that involves first-party and third-party coverage, in a policy or endorsement, written on a direct, admitted basis to cover losses …

(215 ILCS 5/535) (from Ch. 73, par. 1065.85) Sec. 535. Creation of the Fund. There is created a nonprofit unincorporated legal entity to be known as the Illinois Insurance Guaranty Fund. All member companies as defined in Section 534.5 shall be and remain members of the Fund as a…

(215 ILCS 5/536) (from Ch. 73, par. 1065.86) Sec. 536. Board of Directors. (a) The board of directors of the Fund shall consist of not less than 5 nor more than 10 persons, with one public member appointed by the Director, serving terms as established in the plan of operation. Th…

(215 ILCS 5/537) (from Ch. 73, par. 1065.87) Sec. 537. Duties and obligations of the Fund. The Fund shall have the duties and obligations enumerated in Sections 537.1 through 537.9. (Source: P.A. 82-210.)

(215 ILCS 5/537.1) (from Ch. 73, par. 1065.87-1) Sec. 537.1. The Fund may provide for an equal annual fee of all member companies on a non-pro rata basis to provide for contingent expenses of the Fund. This fee may not exceed $500 per member company for any one calendar year. (So…

(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 …

(215 ILCS 5/537.3) (from Ch. 73, par. 1065.87-3) Sec. 537.3. Access to insolvent company records. The liquidator of an insolvent company shall permit access by the Fund or its authorized representatives, and by any similar organization in another state or its authorized represent…

(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…

(215 ILCS 5/537.6) (from Ch. 73, par. 1065.87-6) Sec. 537.6. Allocation of claims; assessments. The Fund shall allocate covered claims paid and expenses incurred between the accounts established by Section 535 separately, and assess member companies separately for each account am…

(215 ILCS 5/537.7) (from Ch. 73, par. 1065.87-7) Sec. 537.7. Investigation of claims; disposition. (a) The Fund shall investigate claims brought against the Fund and adjust, compromise, settle, and pay covered claims to the extent of the Fund's obligation and deny all other claim…

(215 ILCS 5/537.9) (from Ch. 73, par. 1065.87-9) Sec. 537.9. The Fund shall handle claims through its employees or through one or more companies or other persons employed as servicing facilities. (Source: P.A. 85-576.)

(215 ILCS 5/538) (from Ch. 73, par. 1065.88) Sec. 538. Powers of the Fund. The Fund shall have the powers enumerated in the Sections following this Section and preceding Section 539. (Source: P.A. 102-396, eff. 8-16-21.)

(215 ILCS 5/538.1) (from Ch. 73, par. 1065.88-1) Sec. 538.1. The Fund may appear in, defend and appeal any action on a claim brought against it on a covered claim. (Source: P.A. 77-305.)