Illinois Compiled Statutes
215 ILCS 5/388 (2026)
Standard provision for liability policies - Provisions forbidden
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(215 ILCS 5/388)
(from Ch. 73, par. 1000)
Sec. 388.
Standard provision for liability policies - Provisions forbidden.
No policy of insurance against liability or indemnity for loss or damage
to any person other than the insured, or to the property of any person
other than the insured, for which any insured is liable, shall be issued or
delivered in this State after July 1, 1937, by any
company subject to this Article unless it contains in substance a provision
that the insolvency or bankruptcy of the insured shall not release the
company from the payment of damages for injuries sustained or death
resulting therefrom, or loss occasioned during the term of such policy, and
stating that in case a certified copy of a judgment against the
insured is returned unsatisfied
in any action brought by the injured person or his or her personal
representative in case death results from the accident because of such
insolvency or bankruptcy, then an action may be maintained by the injured
person or his or her personal representative against such company under the
terms of the policy and subject to all of the conditions thereof for the
amount of the judgment in such action not exceeding the amount of the
policy.
No policy of insurance against liability or indemnity for loss or damage
arising as a result of the operation of Section 6-21 of "An Act
relating to alcoholic liquors", approved January 31, 1934, as amended,
shall contain a provision or provisions which exempt the company from
liability if the damage sustained was the result of the sale or giving away
of alcoholic liquor to a minor.
(Source: P.A. 84-546.)
Notes of Decisions
Cited in 9
cases, 1998–2019 · leading case: Home Ins. Co. of Illions. v. Hooper, 691 N.E.2d 65 (Ill. App. Ct. 1st Dist. 1998).
Home Ins. Co. of Illions. v. Hooper, 691 N.E.2d 65 (Ill. App. Ct. 1st Dist. 1998). “The defendants, Carl Hooper and Deborah Hooper (Hoppers) and Lester, moved for summary judgment, alleging, inter alia, that the self-insured retention provision of the insurance policy was invalid as a violation of section 388 of the Illinois Insurance Code (215 ILCS 5/388 (West…”
Manns v. Briell, 811 N.E.2d 349 (Ill. App. Ct. 4th Dist. 2004). “1000 [(now 215 ILCS 5/388 (West 2002))]) requires certain standard provisions to be included in liability policies affording injured persons a right of action against the insurer if execution against the insured is returned unsatisfied; section 58(k) of the Motor Vehicle Act…”
Skidmore v. Throgmorton, 751 N.E.2d 637 (Ill. App. Ct. 5th Dist. 2001). “Many of the authorities Skidmore cites on this issue involve the injured party’s statutory right to bring this direct action in cases where the injured party has obtained a judgment against a liable party and that liable party has declared bankruptcy or otherwise been declared…”
Rice v. AAA Aerostar, Inc., 690 N.E.2d 1067 (Ill. App. Ct. 4th Dist. 1998). “215 ILCS 5/388 (West 1992). Despite the language of its policy, State Farm need not receive “written notice of the claim or suit” from its insured.”
Birriel v. Odeh (In re Odeh), 431 B.R. 807 (Bankr. N.D. Ill. 2010). “In particular, the court in Terry cited § 388 of the Illinois Insurance Code (now codified at 215 ILCS 5/388 (2008)), which requires liability policies to grant injured parties a right of action against the insurer if a judgment against the insured cannot be satisfied.”
In re Allied Prods. Corp., 288 B.R. 533 (Bankr. N.D. Ill. 2003). “Section 388 of the Illinois Insurance Code, 215 ILCS 5/388 (2002) provides: No policy of insurance against liability .”
Sienna Court Condo. Assoc. v. Champion Aluminum Corp., 2018 IL 122022. “See 215 ILCS 5/388 (West 2010) (the bankruptcy or insolvency of an insured shall not relieve the insurer from its liabilities in case of any loss occasioned during the term of the policy).”
Skidmore v. Throgmorton, No. 5-00-0249 Rel (Ill. App. Ct. 5th Dist. June 29, 2001). “Many of the authorities Skidmore cites on this issue involve the injured party's statutory right to bring this direct action in cases where the injured party has obtained a judgment against a liable party and that liable party has declared bankruptcy or otherwise been declared…”
Rice v. AAA Aerostar, Inc., No. 4-97-0488 (Ill. App. Ct. 4th Dist. Feb. 9, 1998). “215 ILCS 5/388 (West 1992). Despite the language of its policy, State Farm need not receive "written notice of the claim or suit" from its insured.”
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