Chapter 215 — INSURANCE

(215 ILCS 5/538.2) (from Ch. 73, par. 1065.88-2) Sec. 538.2. The Fund may employ or retain such persons as are necessary to handle claims, provide policy benefits and services, and perform other duties of the Fund. (Source: P.A. 103-113, eff. 6-30-23.)

(215 ILCS 5/538.3) (from Ch. 73, par. 1065.88-3) Sec. 538.3. The Fund may borrow an amount of money necessary to effect the purposes of this Article in accord with the plan of operation. The board of directors shall have the authority to pledge all or an appropriate portion of fu…

(215 ILCS 5/538.4) (from Ch. 73, par. 1065.88-4) Sec. 538.4. Legal actions by Fund. The Fund may sue or be sued, including, but not limited to, taking any legal actions necessary or proper for recovery of: (i) any unpaid assessments under Section 537.1 or 537.6; (ii) any amounts …

(215 ILCS 5/538.5) (from Ch. 73, par. 1065.88-5) Sec. 538.5. The Fund may negotiate and become a party to such contracts as are necessary to carry out the purposes of this Article. (Source: P.A. 82-210.)

(215 ILCS 5/538.7) (from Ch. 73, par. 1065.88-7) Sec. 538.7. (a) The Fund may perform such other acts as are necessary or proper to effectuate the purposes of this Article. (b) The Fund may contract with the Office of Special Deputy Receiver or any other person or organizations a…

(215 ILCS 5/538.8) (from Ch. 73, par. 1065.88-8) Sec. 538.8. (a) If, at any time, the board of directors finds that the assets of the Fund in any account exceed the liabilities and expected costs and expenses of that account, the Fund may refund that amount of assets of the accou…

(215 ILCS 5/538.9) Sec. 538.9. Action regarding insolvent company records. (a) In this Section, "claims information" includes files, records, and electronic data. (b) The Fund may bring an action against any third-party administrator, agent, attorney, or other representative of t…

(215 ILCS 5/539) (from Ch. 73, par. 1065.89) Sec. 539. Plan of operation. (a) The Fund shall 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 Fund. The plan of operation…

(215 ILCS 5/54) (from Ch. 73, par. 666) (Section scheduled to be repealed on January 1, 2027) Sec. 54. Dividends. (1) The board of directors or trustees of any company subject to the provisions of this Article doing the kind or kinds of insurance business described in Class 1 of …

(215 ILCS 5/540) (from Ch. 73, par. 1065.90) Sec. 540. The plan of operation shall do the following as enumerated in Sections 540.1 through 540.9. (Source: P.A. 77-305.)

(215 ILCS 5/540.1) (from Ch. 73, par. 1065.90-1) Sec. 540.1. The plan of operation shall establish the procedures whereby all the powers and duties of the Fund under Sections 537.1 through 537.9 will be performed. (Source: P.A. 82-210.)

(215 ILCS 5/540.2) (from Ch. 73, par. 1065.90-2) Sec. 540.2. The plan of operation shall establish procedures for handling assets of the Fund. (Source: P.A. 77-305.)

(215 ILCS 5/540.3) (from Ch. 73, par. 1065.90-3) Sec. 540.3. The plan of operation shall establish the amount and method of reimbursing members of the board of directors under subsection (c) of Section 536. (Source: P.A. 82-210.)

(215 ILCS 5/540.5) (from Ch. 73, par. 1065.90-5) Sec. 540.5. (a) A covered claim, for other than unearned premium, is a claim which appears on the books and records of the insolvent company as of the date of the Order of Liquidation or a claim for which notice is given in writing…

(215 ILCS 5/540.6) (from Ch. 73, par. 1065.90-6) Sec. 540.6. The plan of operation shall provide that any member company aggrieved by any final action or decision of the Fund may appeal to the Director within 30 days after the action or decision. (Source: P.A. 77-305.)

(215 ILCS 5/540.7) (from Ch. 73, par. 1065.90-7) Sec. 540.7. The plan of operation shall establish the procedures whereby selections for the board of directors will be submitted to the Director. (Source: P.A. 77-305.)

(215 ILCS 5/540.8) (from Ch. 73, par. 1065.90-8) Sec. 540.8. The plan of operation shall establish the procedures for disposition of monies reimbursed from the estate of the insolvent company. (Source: P.A. 85-576.)

(215 ILCS 5/540.9) (from Ch. 73, par. 1065.90-9) Sec. 540.9. The plan of operation may contain additional provisions necessary or proper for the execution of the powers, duties and obligations of the Fund. (Source: P.A. 77-305.)

(215 ILCS 5/541) (from Ch. 73, par. 1065.91) Sec. 541. The plan of operation may provide that any or all powers and duties of the Fund, except those under Sections 537.6 and 538.3 may be delegated to a corporation, association, or other organization which performs or will perform…

(215 ILCS 5/543) (from Ch. 73, par. 1065.93) Sec. 543. Duties and obligations of the Director. The Director shall have the duties and obligations enumerated in Sections 543.1 through 543.3. (Source: P.A. 77-305.)

(215 ILCS 5/543.1) (from Ch. 73, par. 1065.93-1) Sec. 543.1. The Director shall serve a copy of the complaint seeking an Order of Liquidation with a finding of insolvency against a domestic member company on the Fund at the same time that such complaint is filed with the circuit …

(215 ILCS 5/543.2) (from Ch. 73, par. 1065.93-2) Sec. 543.2. The Director shall, upon request of the board of directors, provide the Fund with a statement of the net direct written premiums of each member company for the preceding calendar year for which annual statements have be…

(215 ILCS 5/543.3) (from Ch. 73, par. 1065.93-3) Sec. 543.3. The liquidator of an insolvent company shall notify the policyholders of the insolvent company who are residents of this State of the entry of an Order of Liquidation against the company and of their rights under this A…

(215 ILCS 5/544) (from Ch. 73, par. 1065.94) Sec. 544. Powers of the Director. The Director shall either (a) suspend or revoke, after notice and hearing pursuant to Sections 401, 402 and 403 of this Code, the certificate of authority to do business in this State of any member com…

(215 ILCS 5/545) (from Ch. 73, par. 1065.95) Sec. 545. Effect of paid claims. (a) Every insured or claimant seeking the protection of this Article shall cooperate with the Fund to the same extent as such person would have been required to cooperate with the insolvent company. The…

(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 …

(215 ILCS 5/547) (from Ch. 73, par. 1065.97) Sec. 547. Prevention of insolvencies. To aid in the detection and prevention of company insolvencies: (a) The board of directors may, upon majority vote, make recommendations to the Director on matters pertaining to regulation for solv…

(215 ILCS 5/548) (from Ch. 73, par. 1065.98) Sec. 548. Examination of the Fund. The Fund shall be subject to examination and regulation by the Director. The board of directors shall, not later than April 30 of each year, submit a financial report for the preceding calendar year i…

(215 ILCS 5/549) (from Ch. 73, par. 1065.99) Sec. 549. Tax exemption. The Fund shall be exempt from payment of all fees and all taxes levied by this State or any of its subdivisions. (Source: P.A. 77-305.)

(215 ILCS 5/55) (from Ch. 73, par. 667) (Section scheduled to be repealed on January 1, 2027) Sec. 55. Contingent liability policy provisions. In cases where contingent liability of members is provided for, the provision therefor shall be plainly stated in each policy with promin…

(215 ILCS 5/550) (from Ch. 73, par. 1065.100) Sec. 550. Immunity. There shall be no liability on the part of and no cause of action of any nature shall arise against any member company, the Fund or their agents or employees, the board of directors, or the Director or his represen…

(215 ILCS 5/551) (from Ch. 73, par. 1065.101) Sec. 551. Stay of proceedings. All proceedings arising out of a claim under a policy of insurance written by an insolvent company shall be stayed for 120 days from the date of the entry of the Order of Liquidation to permit proper def…

(215 ILCS 5/552) (from Ch. 73, par. 1065.102) Sec. 552. All provisions of this Article shall be interpreted in accordance with and pursuant to those Sections of Article XIII of this Code which may be applicable. (Source: P.A. 85-576.)

(215 ILCS 5/553) (from Ch. 73, par. 1065.103) Sec. 553. Severability. If any provision of this Article or the application thereof to any claimant, company or circumstance is held invalid, such invalidity does not affect other provisions or applications of this Article which can b…

(215 ILCS 5/56) (from Ch. 73, par. 668) (Section scheduled to be repealed on January 1, 2027) Sec. 56. Accumulation of guaranty fund or guaranty capital. Any company subject to the provisions of this Article, may provide for a surplus either by accumulating a guaranty fund or a g…

(215 ILCS 5/57) (from Ch. 73, par. 669) (Section scheduled to be repealed on January 1, 2027) Sec. 57. Amendment of articles of incorporation. (1) A company subject to the provisions of this Article may amend its articles of incorporation in any respect not in violation of law, b…

(215 ILCS 5/58) (from Ch. 73, par. 670) (Section scheduled to be repealed on January 1, 2027) Sec. 58. Governmental agencies and corporations may be members. Any government or governmental agency, state or political subdivision thereof, public or private corporation, board, assoc…

(215 ILCS 5/59) (from Ch. 73, par. 671) (Section scheduled to be repealed on January 1, 2027) Sec. 59. Reinsurance agreements. Unless the contract provides otherwise any reinsurance agreement effected by any company subject to the provisions of this Article upon the whole or any …

(215 ILCS 5/59.1) (Section scheduled to be repealed on January 1, 2027) Sec. 59.1. Conversion to stock company. (1) Definitions. For the purposes of this Section, the following terms shall have the meanings indicated: (a) "Eligible member" is a member as of the date the mutual co…

(215 ILCS 5/59.2) (Section scheduled to be repealed on January 1, 2027) Sec. 59.2. Formation of mutual insurance holding company and conversion of mutual company to stock company. (1) Definitions. For the purposes of this Section, the following terms shall have the meanings indic…

(215 ILCS 5/6) (from Ch. 73, par. 618) (Section scheduled to be repealed on January 1, 2027) Sec. 6. Scope of Article. This Article shall apply to all domestic stock companies transacting or being organized to transact any of the kinds of insurance business enumerated in Section …

(215 ILCS 5/60) (from Ch. 73, par. 672) (Section scheduled to be repealed on January 1, 2027) Sec. 60. Procedure when insufficient assets are possessed by company. (1) Whenever the Director finds that the admitted assets of a company subject to the provisions of this Article are …

(215 ILCS 5/60a) (from Ch. 73, par. 672a) Sec. 60a. Alien companies; Illinois State of entry. (1) An alien company may use Illinois as a state of entry to transact insurance in the United States by obtaining a certificate of authority pursuant to Section 111 and maintaining in th…

(215 ILCS 5/60b) (from Ch. 73, par. 672b) Sec. 60b. Alien companies; Illinois trusteed assets. (1) An alien company may not use Illinois as a state of entry to transact insurance in the United States unless it maintains in this State a deposit of assets in trust for the benefit o…

(215 ILCS 5/60c) (from Ch. 73, par. 672c) Sec. 60c. Requirements and contents of trust agreement. Trust agreements governing Trusteed Assets required by Section 60b shall satisfy the following conditions: (1) Legal title to the Trusteed Assets shall be vested in the trustee or tr…

(215 ILCS 5/60d) (from Ch. 73, par. 672d) Sec. 60d. Withdrawal of Trusteed Assets. (1) The trust agreement shall provide that no withdrawals of Trusteed Assets shall be made by the alien company or permitted by the trustee or trustees without the prior approval of the Director, e…

(215 ILCS 5/60e) (from Ch. 73, par. 672e) Sec. 60e. Domestication of Alien Company; definitions. As used in Sections 60e through 60i: (1) "Domestication" means the reorganization of the United States branch of an alien company as the result of which a domestic company shall succe…

(215 ILCS 5/60f) (from Ch. 73, par. 672f) Sec. 60f. Domestication procedure. (1) Upon compliance with Sections 60e through 60i, any alien company authorized to do business in this State may, with the prior written approval of the Director, domesticate its United States branch by …

(215 ILCS 5/60g) (from Ch. 73, par. 672g) Sec. 60g. Domestication agreement; authorization; execution. (1) The domestication agreement referred to in Section 60f shall be authorized, adopted, approved, signed, and acknowledged by the alien company in accordance with the laws of t…

(215 ILCS 5/60h) (from Ch. 73, par. 672h) Sec. 60h. Director's approval of domestication agreement. An executed counterpart of the domestication agreement, together with certified copies of the corporate proceedings of the domestic company and the alien company, approving, adopti…