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| Public Act 099-0387 | ||||
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AN ACT concerning insurance.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Insurance Code is amended by | ||||
changing Sections 537.4 and 546 as follows:
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(215 ILCS 5/537.4) (from Ch. 73, par. 1065.87-4)
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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 of | ||||
the insolvent company, subject to the
limitations provided in | ||||
this Article, as if the company had not become
insolvent, with | ||||
the
exception that the liquidator shall retain the sole right
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to recover any reinsurance proceeds.
The Fund's rights under | ||||
this Section include, but are not limited to, the
right to | ||||
pursue and retain salvage and subrogation recoveries on paid | ||||
covered
claim obligations to the extent paid by the Fund. The | ||||
extent of the Fund's subrogation rights and any other rights of | ||||
reimbursement with respect to its covered claims payments shall | ||||
not be limited as if the Fund were the insolvent company, but | ||||
shall be determined independently by taking into account the | ||||
Fund's rights under Section 546 of this Article.
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(Source: P.A. 89-97, eff. 7-7-95.)
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(215 ILCS 5/546) (from Ch. 73, par. 1065.96)
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Sec. 546. Other insurance.
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(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 the claim under
such other | ||
policy arises from the same facts, injury, or loss that gave | ||
rise to
the covered claim against the Fund. The Fund's | ||
obligation under Section 537.2
shall be reduced by the amount | ||
recovered or recoverable, whichever is greater,
under such | ||
other insurance policy. Where such other insurance policy | ||
provides
uninsured
or underinsured motorist coverage, the | ||
amount recoverable shall be deemed to be
the full applicable | ||
limits of such coverage. To the extent that the Fund's
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obligation under Section 537.2 is reduced by application of | ||
this Section, the
liability of the person insured by the | ||
insolvent insurer's policy for the claim
shall be reduced in | ||
the same amount. If the Fund pays a covered claim without the | ||
exhaustion of all other coverage that could have been exhausted | ||
under this Section, the Fund shall have an independent right of | ||
recovery against each insurer whose coverage was not exhausted | ||
in the amount the Fund would not have had to pay if that | ||
insurer's coverage had been exhausted first.
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(b) Any insured or claimant having a claim which may be | ||
recovered under more
than one insurance guaranty fund or its | ||
equivalent shall seek recovery
first from the Fund of the place | ||
of residence of the insured except that
if it is a first party | ||
claim for damage to property with a permanent
location, he | ||
shall first seek recovery from the Fund of the location of
the | ||
property; if it is a workers' compensation claim, he shall | ||
first
seek recovery from the Fund of the residence of the | ||
claimant. Any
recovery under this Article shall be reduced by | ||
the amount of the
recovery from any other insurance guaranty | ||
fund or its equivalent.
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(Source: P.A. 89-97, eff. 7-7-95; 90-499, eff. 8-19-97.)
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Section 98. Applicability. This amendatory Act applies to | ||
pending actions as well as actions commenced on or after the | ||
effective date of this amendatory Act of the 99th General | ||
Assembly.
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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