215 ILCS 5/179A-25
2021 Illinois Compiled Statutes|Chapter 215 - INSURANCE|215 ILCS 5/ - Illinois Insurance Code.|Article XI 1/2 - Protected Cell Companies

Sec. 179A-25.     Reach of creditors and other claimants.(a) Protected cell assets are available only to  the  creditors of the protected cell company  who are creditors in  respect of that protected cell and entitled, in conformity  with the provisions of  this Article, to have recourse to the protected cell assets attributable to  that protected cell. Protected cell assets  shall be absolutely protected from the creditors of the protected cell  company who are not  creditors in respect  of that protected cell and who, accordingly, are not  entitled  to have  recourse to the protected  cell assets attributable to that protected cell.  Creditors with respect to a  protected  cell shall not be entitled to  have recourse against the protected cell assets of other protected cells or the  assets of the  protected cell company's general account.Protected cell assets are available only to creditors of a  protected cell company after all protected cell liabilities have been  extinguished or otherwise provided for in accordance with the plan of operation  relating to that protected cell.(b) When an obligation of a protected cell company to a person arises from a  transaction, or is otherwise imposed, in  respect of a  protected cell:(1) that obligation of the protected cell company     shall extend only to the protected cell assets attributable to that protected cell, and the person shall, in respect of that obligation, be entitled to have recourse only to the protected cell assets attributable to that protected cell; and(2) that obligation of the protected cell company     shall not extend to the protected cell assets of any other protected cell or the assets of the company's general account, and that person shall not, in respect of that obligation, be entitled to have recourse to the protected cell assets of any other protected cell or the assets of the company's general account.(c) When an obligation of a protected cell company relates solely to the  general  account,  the  obligation of the protected cell company shall extend only to, and that  creditor shall, in  respect of that  obligation, be entitled to have recourse only to, the assets of the protected  cell company's general  account.(d) The activities, assets, and obligations relating to a protected cell are not  subject to the provisions  of Article XXXIII1/2 (Illinois Life and Health Guaranty Association Law) or  Article XXXIV  (Illinois  Insurance Guaranty Fund), and neither a protected cell nor a protected cell  company shall be assessed by or  otherwise be required to  contribute to any guaranty fund or guaranty association in this State with  respect to the activities, assets, or obligations of a protected cell.  Nothing  in this subsection  shall affect the activities or obligations of a company's general account.(e) In no event shall the establishment of one or more protected cells alone  constitute or be deemed  to be a fraudulent conveyance, an intent by the protected cell company to  defraud creditors,  or  the carrying out  of business by the protected cell company for any other fraudulent purpose.    (Source: P.A. 91-278, eff. 7-23-99; 92-74, eff. 7-12-01.)