215 ILCS 5/545
2021 Illinois Compiled Statutes|Chapter 215 - INSURANCE|215 ILCS 5/ - Illinois Insurance Code.|Article XXXIV - Illinois Insurance Guaranty Fund

 (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 Fund shall have all the rights, duties and  obligations under the policy to the extent of the covered claim payment,  provided the Fund shall have no cause of action against the  insured of the insolvent company for any sums it has paid out except  such causes of action as the insolvent company would have had if such  sums had been paid by the insolvent company and except as provided in  subsection (d) of this Section. Any person recovering under this Article and any insured whose liabilities are satisfied under this Article shall be deemed to have assigned the person's or insured's rights under the policy to the Fund to the extent of his or her recovery or satisfaction obtained from the Fund's payments.(b) The Fund and any similar organization in another state shall be  recognized as claimants in the liquidation of an insolvent company for any  amounts paid by them on covered claims obligations as determined under this  Article or similar laws in other states and shall receive dividends at the  priority set forth in paragraph (d) of subsection (1) of Section  205 of this  Code; provided that if, at the time that the liquidator issues a cut-off notice to the Fund in anticipation of closing the estate, a reserve has been established by the Fund, or any similar organization in another state, for the amount of their future administrative expenses and loss development associated with unpaid reported pending claims, these reserves will be deemed to have been paid as of the date of the notice and payment shall be made accordingly.   The liquidator of an insolvent company shall be bound by  determinations of covered claim eligibility under the Act and by settlements  of claims made by  the Fund or a similar organization in  another state on the receipt of certification of such payments, to the extent  those  determinations or settlements satisfy obligations of the Fund, but the receiver  shall not be bound in any way by those determinations or settlements to the  extent that there remains a claim in the estate for amounts in excess of the  payments by the Fund.  In submitting their claim for covered claim payments the Fund and any  similar organization in another state shall not be subject to the  requirements of Sections 208 and 209 of this Code and shall not be affected  by the failure of the person receiving a covered claim payment to file a proof  of claim.(c) The expenses of the Fund and of any similar  organization in any other state, other than expenses incurred in the  performance of  duties under Section 547 or similar duties under the  statute governing a similar organization in another state, shall  be accorded priority over all claims  against the estate, except as provided for in paragraph (a) of subsection (1) of  Section 205 of this Code.  The liquidator shall make prompt reimbursement  to the Fund and any similar organization for such expense payments.(d) The Fund has the right to recover from the following persons the amount  of any covered claims (as determined without regard to the exemption in paragraph (iv) of subsection (b) of Section 534.3) and allocated claims expenses which the Fund paid or  incurred on behalf of such person in satisfaction, in whole or in part, of  liability obligations of such person to any other person:(i) any insured whose net worth on December 31 of the     year next preceding the date the company becomes an insolvent company exceeds $25,000,000; provided that an insured's net worth on such date shall be deemed to include the aggregate net worth of the insured and all of its affiliates as calculated on a consolidated basis.(ii) any insured who is an affiliate of the insolvent     company.The Fund may also, at its sole discretion and without assumption of any ongoing duty to do so, pay any workers compensation claims or any other third-party claims covered by a policy of an insolvent company on behalf of a high net worth insured as defined in paragraph (iv) of subsection (b) of Section 534.3. In that case, the Fund shall recover from the high net worth insured under this Section for all amounts paid on its behalf, all allocated claim adjusted expenses related to such claims, the Fund's attorney's fees, and all court costs in any action necessary to collect the full amount to the Fund's reimbursement under this Section. (Source: P.A. 100-410, eff. 8-25-17; 101-60, eff. 7-12-19.)