IL SB2609

Amends the Illinois Insurance Code to reorganize the priority distribution of general assets in insurance company liquidations, establishing separate expense categories for guaranty fund organizations and director-approved expenses.

Specifies that expenses of the Illinois Insurance Guaranty Fund, Illinois Life and Health Insurance Guaranty Association, and Illinois Health Maintenance Organization Guaranty Association are subordinate to other administrative costs and shall be reimbursed as prescribed in Section 545.

Includes loss adjustment expenses, defense costs, and cost containment expenses for property and casualty guaranty associations in their reimbursable expenses during liquidation.

Modifies Section 545 to clarify that guaranty fund expenses are accorded priority over claims against the estate except as provided in the administration expense provisions of Section 205.

Applies the changes retroactively to all pending liquidation, rehabilitation, or conservation proceedings as of the effective date and to all future proceedings.