Chapter 215, INSURANCE

(215 ILCS 5/525.1) (from Ch. 73, par. 1065.72-1) (Text of Section before amendment by P.A. 104-645) Sec. 525.1. Centralized Operations Authorized.) (1) The Industry Placement Facility is authorized, for FAIR Plan purposes only, to issue policies of insurance and endorsements ther…

(215 ILCS 5/525.2) (from Ch. 73, par. 1065.72-2) (Section scheduled to be repealed on January 1, 2027) Sec. 525.2. Premium financing. In the event the Industry Placement Facility accepts premium payments from licensed premium financing companies and whenever a financed FAIR Plan …

(215 ILCS 5/525.3) (from Ch. 73, par. 1065.72-3) (Text of Section before amendment by P.A. 104-645) Sec. 525.3. Approval of Rates. In the event that the Industry Placement Facility proposes to issue policies of insurance or endorsements thereto pursuant to subsection (1) of Secti…

(215 ILCS 5/525.4) (from Ch. 73, par. 1965.72-4) (Section scheduled to be repealed on January 1, 2027) Sec. 525.4. Application for Coverage of Risks by the Facility. (1) In the event that the Industry Placement Facility proposes to issue policies of insurance or endorsements ther…

(215 ILCS 5/527) (from Ch. 73, par. 1065.74) (Text of Section before amendment by P.A. 104-645) Sec. 527. Right to appeal. (1) Any applicant or affected insurer has the right of appeal to the Governing Committee. A decision of the Committee may be appealed to the Director within …

(215 ILCS 5/528) (from Ch. 73, par. 1065.75) (Text of Section before amendment by P.A. 104-645) Sec. 528. Inspection reports. There is no liability on the part of, and no cause of action against insurers, the Inspection Bureau, the Facility, the Association, the Governing Committ…

(215 ILCS 5/529) (from Ch. 73, par. 1065.76) (Section scheduled to be repealed on January 1, 2027) Sec. 529. Illinois Insurance Development Fund. (a) A trust fund is created to be known as the "Illinois Insurance Development Fund" to be administered by the State Treasurer as a sp…

(215 ILCS 5/529.1) (from Ch. 73, par. 1065.76-1) (Section scheduled to be repealed on January 1, 2027) Sec. 529.1. Reimbursement of the Secretary. The Fund shall reimburse the Secretary of the Department of Housing and Urban Development (hereinafter referred to as "the Secretary"…

(215 ILCS 5/529.2) (from Ch. 73, par. 1065.76-2) (Text of Section before amendment by P.A. 104-645) Sec. 529.2. Making of assessments. Whenever the Secretary shall, in accordance with the Act, present to the State a request for reimbursement under the Act, the Fund shall immediat…

(215 ILCS 5/529.3) (from Ch. 73, par. 1065.76-3) (Section scheduled to be repealed on January 1, 2027) Sec. 529.3. Insolvency. In the event any company fails, by reason of insolvency, to pay any assessment, the Fund shall cause the reimbursement ratios, computed under Section 529…

(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) (Text of Section before amendment by P.A. 104-645) 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, w…

(215 ILCS 5/53) (from Ch. 73, par. 665) (Section scheduled to be repealed on January 1, 2037) 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) (Text of Section before amendment by P.A. 104-645) 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,…

(215 ILCS 5/530a) (from Ch. 73, par. 1065.77a) (Section scheduled to be repealed on January 1, 2027) 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 …

(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.)

(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, 2037) 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.)