Illinois Insurance Guaranty Fund

What this document is

215 ILCS 5, Article XXXIV - Illinois Insurance Guaranty Fund is a state statute published by Illinois General Assembly, Legislative Reference Bureau (ilga.gov). It is one of the Illinois documents that insurance license exam questions are written from, including illinois property & casualty, illinois personal lines practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• 215 ILCS 5/537.2 (Obligation of Fund)

  “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...”

• 215 ILCS 5/533 (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 written under clause (a) of Class 2, or (b) mortgage guaranty or other financial...”

• 215 ILCS 5/546(b) (Other insurance)

  “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...”

• 215 ILCS 5/536(a) (Board of Directors)

  “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. The public member shall be a resident of this State, and he or she shall either (1) be a licensed...”

• 215 ILCS 5/537.6 (Allocation of claims; assessments)

  “the amount a member company may be assessed in any year on any account shall be a maximum of 2% of that member company's net direct written premium on the kinds of insurance in the account for the calendar year preceding the assessment. This 2% maximum shall apply regardless of the date of any...”

• 215 ILCS 5/551 (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 defense by the Fund of all such pending causes of action.”

• 215 ILCS 5/537.7(b) (Investigation of claims; disposition)

  “The Fund shall not be bound by a settlement, release, compromise, waiver, or final judgment executed or entered within 12 months prior to an order of liquidation and shall have the right to assert all defenses available to the Fund including, but not limited to, defenses applicable to determining...”

• 215 ILCS 5/534.3(a)(ii) (Covered claim; unearned premium defined)

  “(ii) The claimant or insured is a resident of this State at the time of the insured occurrence, or the property from which a first-party claim for damage to property arises is permanently located in this State or, in the case of an unearned premium claim, the policyholder is a resident of this...”

• 215 ILCS 5/546(a) (Other insurance)

  “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...”

• 215 ILCS 5/537.2 (Obligation of Fund; face-amount ceiling)

  “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, including, but not limited to, any applicable specific or aggregate limits.”

• 215 ILCS 5/537.4 (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...”

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More Illinois sources

• 50 Ill. Adm. Code Part 2904 - Assigned Risk Procedures, workers' compensation (complete Part: Secs. 2904.10 through 2904.240, 24 sections)Regulation
• 50 Ill. Adm. Code Part 3113 - Premium Fund Trust Account (complete Part: Secs. 3113.10 through 3113.70 and Exhibit A, 8 sections)Regulation
• 50 Ill. Adm. Code Part 919 - Improper Claims Practice (complete Part: Secs. 919.10 through 919.100 and Exhibit A, 11 sections)Regulation
• 50 Ill. Adm. Code Part 924 - Equipment Exclusion (complete Part: Secs. 924.10 through 924.50, 5 sections)Regulation
• 215 ILCS 157, Use of Credit Information in Personal Insurance Act (complete Act, Secs. 1 through 99, 15 sections)State statute
• 215 ILCS 5/ Illinois Insurance Code, Article XXVI - Unfair Methods of Competition and Unfair and Deceptive Acts and Practices (Secs. 421-434)State statute
• 215 ILCS 5/ Illinois Insurance Code, Article XXXI - Insurance Producers (selected Secs. 500-15 through 500-120)State statute
• 215 ILCS 5, Article VIIA - Advisory Organizations (Secs. 123A-1 through 123A-15, 15 sections)State statute