IL SB1781

Amends Section 537.2 of the Illinois Insurance Code to modify the Illinois Insurance Guaranty Fund's obligations for workers' compensation claims arising from insolvent insurers.

Establishes that obligations under insurance policies written to indemnify self-insured employers for workers' compensation liability are subject to per-claim limits set forth in the statute, regardless of specific or aggregate retention amounts.

Maintains existing per-claim obligation limits: $500,000 for liquidation orders on or after January 1, 2011 (except workers' compensation claims are unlimited), with exclusions for the first $100 of unearned premiums and unearned premiums exceeding $10,000 per policy.

Clarifies that the Fund is not liable for interest on judgments against the insolvent company, but is liable for statutory interest on money judgments entered against the Fund itself until satisfied.

Takes effect upon becoming law.