ILCS » Chapter 215 · Act 5
Illinois Compiled Statutes

215 ILCS 5/534.3 (2026)

Covered claim; unearned premium defined

✓ current as of May 2026
Find cases: SyfertCases citing this section IL-ILGAilga.gov JustiaChapter on Justia CornellLII Search CasesGoogle Scholar
(215 ILCS 5/534.3) (from Ch. 73, par. 1065.84-3)
    Sec. 534.3. Covered claim; unearned premium defined.
    (a) "Covered claim" means an unpaid claim for a loss arising out of and within the coverage of an insurance policy to which this Article applies and which is in force at the time of the occurrence giving rise to the unpaid claim, including claims presented during any extended discovery period which was purchased from the company before the entry of a liquidation order or which is purchased or obtained from the liquidator after the entry of a liquidation order, made by a person insured under such policy or by a person suffering injury or damage for which a person insured under such policy is legally liable, and for unearned premium, if:
        (i) The company issuing, assuming, or being allocated
    
the policy becomes an insolvent company as defined in Section 534.4 after the effective date of this Article; and
        (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 State at the time the policy was issued; provided, that for entities other than an individual, the residence of a claimant, insured, or policyholder is the state in which its principal place of business is located at the time of the insured event.
    (b) "Covered claim" does not include:
        (i) any amount in excess of the applicable limits of
    
liability provided by an insurance policy to which this Article applies; nor
        (ii) any claim for punitive or exemplary damages or
    
fines and penalties paid to government authorities; nor
        (iii) any first-party claim by an insured who is an
    
affiliate of the insolvent company; nor
        (iv) any first-party or third-party claim by or
    
against an insured whose net worth on December 31 of the year next preceding the date the insurer becomes an insolvent insurer 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. However, this exclusion shall not apply to third-party claims against the insured where the insured has applied for or consented to the appointment of a receiver, trustee, or liquidator for all or a substantial part of its assets, filed a voluntary petition in bankruptcy, filed a petition or an answer seeking a reorganization or arrangement with creditors or to take advantage of any insolvency law, or if an order, judgment, or decree is entered by a court of competent jurisdiction, on the application of a creditor, adjudicating the insured bankrupt or insolvent or approving a petition seeking reorganization of the insured or of all or substantial part of its assets; nor
        (v) any claim for any amount due any reinsurer,
    
insurer, insurance pool, or underwriting association as subrogated recoveries, reinsurance recoverables, contribution, indemnification or otherwise. No such claim held by a reinsurer, insurer, insurance pool, or underwriting association may be asserted in any legal action against a person insured under a policy issued by an insolvent company other than to the extent such claim exceeds the Fund obligation limitations set forth in Section 537.2 of this Code.
    (c) "Unearned Premium" means the premium for the unexpired period of a policy which has been terminated prior to the expiration of the period for which premium has been paid and does not mean premium which is returnable to the insured for any other reason.
(Source: P.A. 104-417, eff. 8-15-25.)

    
Notes of Decisions
Cited in 20 cases, 1995–2018 · leading case: Pendleton v. Aguilar, 827 N.E.2d 614 (Ind. Ct. App. 2005).
Sort: Relevance Newest Treatment
Pendleton v. Aguilar, 827 N.E.2d 614 (Ind. Ct. App. 2005). · cites it 5× “" 215 ILCS 5/534.3(a). 9. The Illinois Act states that the amount payable for a covered claim is limited by the "other insurance" statute section which requires that an insured or claimant be required to first exhaust all other insurance coverage available.”
Roth v. Illinois Ins. Guar. Fund, 852 N.E.2d 289 (Ill. App. Ct. 2006). · cites it 3× “The Fund’s liability, however, is subject to the limitations of the Act, which include, inter alia, that the claim must be a “covered claim” (215 ILCS 5/534.3 (West 2004)), the liability of the Fund is to be reduced by “other insurance” before a claimant or insured can recover…”
Skokie Castings, Inc. v. Illinois Ins. Guar. Fund, 2013 IL 113873 (Ill. 2013). · cites it 8× “) 215 ILCS 5/534.3 (West 2010). Here, Wells has presented a “covered claim” because it is “an unpaid claim” filed by Wells, an Illinois resident and “insured person” under -18- its policies with Home, an insurance company that became insolvent.”
Skokie Castings, Inc. v. Illinois Ins. Guar. Fund, 2013 IL 113873 (Ill. 2013). · cites it 8× “) 215 ILCS 5/534.3 (West 2010). Here, Wells has presented a “covered claim” because it is “an unpaid claim” filed by Wells, an Illinois resident and “insured person” under its policies with Home, an insurance company that became insolvent.”
Hasemann v. White, 686 N.E.2d 571 (Ill. 1997). · cites it 2× “215 ILCS 5/534.3, 546(a) (West 1994). We allowed leave to appeal in this case (155 Ill.”
Cmty. Unit Sch. Dist. 200 v. Illinois Ins. Guar. Fund, 832 N.E.2d 472 (Ill. App. Ct. 2005). · cites it 3× “215 ILCS 5/534.3(a) (West 2002). However, a covered claim does not include a claim against an insured whose net worth exceeded $25 million on December 31 of the year before the claim arose.”
Illinois Ins. Guar. Fund v. Nwidor, 2018 IL App (1st) 171378 (Ill. App. Ct. 2018). “215 ILCS 5/534.3(a) (West 2014). Accordingly, IIGF sought a declaration that it did not have a duty to defend or indemnify Chicago Cab or Nwidor in the underlying action, and that IIGF was entitled to reimbursement from Chicago Cab for defense costs.”
Barbee v. Illinois Ins. Guar. Fund, 915 N.E.2d 871 (Ill. App. Ct. 2009). · cites it 3× “Therefore, she reasons that because the Fund had knowledge of the original injury claim, the Fund ipso facto had knowledge of any potential claim.”
Guzman v. 7513 West Madison Street, Inc., 2013 IL App (1st) 122161 (Ill. App. Ct. 2013). · cites it 2× “215 ILCS 5/534.3 (West 2008); Roth v. Illinois Insurance Guaranty Fund, 366 Ill.”
Illinois Ins. Guar. Fund v. Santucci, 894 N.E.2d 801 (Ill. App. Ct. 2008). · cites it 4× “We reverse because the underlying claim was not a covered claim under the Illinois Insurance Code (Insurance Code) (215 ILCS 5/534.3(a) (West 2004)). FACTS In November 2001, Santucci lived at 45 West Plank Road, Hampshire, Illinois.”
Illinois Ins. Guar. Fund v. Farmland Mut. Ins., 653 N.E.2d 856 (Ill. App. Ct. 1995). “” (215 ILCS 5/534.3 (West 1992).) We have interpreted this section as well: "It is clear that the legislature did not want the assets of the Fund depleted to reimburse solvent insurance companies for payments made to claimants or their insured under policies for which they…”
Liquidation of Pine Top Ins. v. Shapo, 749 N.E.2d 1011 (Ill. App. Ct. 2001). “215 ILCS 5/534.3, 537.2 (West 1998). The Guaranty Fund is comprised of companies licensed to transact insurance business in the State of Illinois (215 ILCS 5/534.”
Show all 20 citing cases →
— 215 ILCS 5/534.3(a) — 11 cases
Pendleton v. Aguilar, 827 N.E.2d 614 (Ind. Ct. App. 2005). “" 215 ILCS 5/534.3(a). 9. The Illinois Act states that the amount payable for a covered claim is limited by the "other insurance" statute section which requires that an insured or claimant be required to first exhaust all other insurance coverage available.”
Skokie Castings, Inc. v. Illinois Ins. Guar. Fund, 2013 IL 113873 (Ill. 2013). “) 215 ILCS 5/534.3 (West 2010). Here, Wells has presented a “covered claim” because it is “an unpaid claim” filed by Wells, an Illinois resident and “insured person” under -18- its policies with Home, an insurance company that became insolvent.”
Roth v. Illinois Ins. Guar. Fund, 852 N.E.2d 289 (Ill. App. Ct. 2006). “The Fund’s liability, however, is subject to the limitations of the Act, which include, inter alia, that the claim must be a “covered claim” (215 ILCS 5/534.3 (West 2004)), the liability of the Fund is to be reduced by “other insurance” before a claimant or insured can recover…”
Skokie Castings, Inc. v. Illinois Ins. Guar. Fund, 2013 IL 113873 (Ill. 2013). “) 215 ILCS 5/534.3 (West 2010). Here, Wells has presented a “covered claim” because it is “an unpaid claim” filed by Wells, an Illinois resident and “insured person” under its policies with Home, an insurance company that became insolvent.”
Illinois Ins. Guar. Fund v. Nwidor, 2018 IL App (1st) 171378 (Ill. App. Ct. 2018). “215 ILCS 5/534.3(a) (West 2014). Accordingly, IIGF sought a declaration that it did not have a duty to defend or indemnify Chicago Cab or Nwidor in the underlying action, and that IIGF was entitled to reimbursement from Chicago Cab for defense costs.”
— 215 ILCS 5/534.3(b)(iv) — 2 cases
Cmty. Unit Sch. Dist. 200 v. Illinois Ins. Guar. Fund, 832 N.E.2d 472 (Ill. App. Ct. 2005). “215 ILCS 5/534.3(a) (West 2002). However, a covered claim does not include a claim against an insured whose net worth exceeded $25 million on December 31 of the year before the claim arose.”
Cmty. Unit Sch. Dist. 200 v. Illinois Ins. Guar. Fund (Ill. App. Ct. 2005).
— 215 ILCS 5/534.3(b)(v) — 2 cases
Roth v. Illinois Ins. Guar. Fund, 852 N.E.2d 289 (Ill. App. Ct. 2006). “The Fund’s liability, however, is subject to the limitations of the Act, which include, inter alia, that the claim must be a “covered claim” (215 ILCS 5/534.3 (West 2004)), the liability of the Fund is to be reduced by “other insurance” before a claimant or insured can recover…”
Skokie Castings v. Illinois Ins. Guar., 964 N.E.2d 1225 (Ill. App. Ct. 2012).
— 215 ILCS 5/534.3(ii) — 1 case
Pendleton v. Aguilar, 827 N.E.2d 614 (Ind. Ct. App. 2005). “" 215 ILCS 5/534.3(a). 9. The Illinois Act states that the amount payable for a covered claim is limited by the "other insurance" statute section which requires that an insured or claimant be required to first exhaust all other insurance coverage available.”
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.