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Illinois Compiled Statutes

215 ILCS 5/537.7 (2026)

Investigation of claims; disposition

✓ current as of May 2026 Cite as: 215 ILCS 5/537.7 (2026)
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(215 ILCS 5/537.7) (from Ch. 73, par. 1065.87-7)
    Sec. 537.7. Investigation of claims; disposition.
    (a) The Fund shall investigate claims brought against the Fund and adjust, compromise, settle, and pay covered claims to the extent of the Fund's obligation and deny all other claims.
    (b) 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 and enforcing its statutory rights and obligations to any claim. The Fund shall be bound by a settlement, release, compromise, waiver, or final judgment executed or entered more than 12 months prior to an order of liquidation, but only if the claim is a covered claim and the settlement, release, compromise, waiver, or final judgment was not a result of fraud, collusion, default, or failure to defend. In addition, with respect to covered claims arising from a judgment under a decision, verdict, or finding based on the default of the insolvent insurer or its failure to defend, upon application by the Fund, either on its own behalf or on behalf of an insured, the court shall set aside the judgment, order, decision, verdict, or finding, and the Fund shall be permitted to defend against the claim on the merits. The same criteria determining whether the Fund will be bound, as specified in this subsection (b), shall apply to any settlement, release, compromise, waiver, or final judgment entered into by a high net worth insured before the date on which claims by or against that insured became non-exempt for reasons specified in paragraph (iv) of subsection (b) of Section 534.3.
    (c) The Fund shall have the right to appoint or approve and to direct legal counsel retained under liability insurance policies for the defense of covered claims as well as the right to appoint or approve and to direct legal counsel and other service providers under any other insurance policies subject to this Article, regardless of any limitations in the policy.
(Source: P.A. 103-113, eff. 6-30-23.)

    
Notes of Decisions
Cited in 5 cases, 1995–2008 · leading case: Gines v. Ivy
Sort: Relevance Newest Treatment
Gines v. Ivy (2005) illappct · cites it 4× “) 215 ILCS 5/537.7(b) (West 2002); In re Liquidation of Prestige Casualty Co.”
In re Liquidation of Prestige Casualty Co. (1995) illappct “(215 ILCS 5/537.7 (West 1992).) The Fund is also empowered to apply to vacate any default judgment entered during the 120-day stay.”
Illinois Insurance Guaranty Fund v. Santucci (2008) illappct “” 215 ILCS 5/537.7(b) (West 2004). In this case, Statewide assumed the defense of Santueci on or about January 6, 2004, and was found insolvent that same day.”
Gines v. Ivy (2005) illappct · cites it 4× “) 215 ILCS 5/537.7(b) (West 2002); In re Liquidation of Prestige Casualty Co.”
Illinois Insurance Guaranty Fund v. Santucci (2008) illappct “" 215 ILCS 5/537.7(b) (West 2004). In this case, Statewide assumed the defense of Santucci on or about January 6, 2004, and was found insolvent that same day.”
— 215 ILCS 5/537.7(b) — 4 cases
Gines v. Ivy (2005) illappct “) 215 ILCS 5/537.7(b) (West 2002); In re Liquidation of Prestige Casualty Co.”
Illinois Insurance Guaranty Fund v. Santucci (2008) illappct “” 215 ILCS 5/537.7(b) (West 2004). In this case, Statewide assumed the defense of Santueci on or about January 6, 2004, and was found insolvent that same day.”
Gines v. Ivy (2005) illappct “) 215 ILCS 5/537.7(b) (West 2002); In re Liquidation of Prestige Casualty Co.”
Illinois Insurance Guaranty Fund v. Santucci (2008) illappct “" 215 ILCS 5/537.7(b) (West 2004). In this case, Statewide assumed the defense of Santucci on or about January 6, 2004, and was found insolvent that same day.”
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.