IL SB0683

Creates new Section 141b requiring contracts between property and casualty insurers and third-party claim administrators to include provisions protecting claim files upon insurer liquidation or rehabilitation.

Mandates that claim files become property of the insurer's estate upon liquidation, with administrators retaining reasonable access and copy rights at their own expense.

Requires electronic claim file data be maintained in separable format and transferred to liquidators within 10 days of liquidation order, with new contracts required to comply immediately and existing contracts given one year to comply.

Modifies Section 205 to establish priority distribution of insurer assets, clarifying that property and casualty guaranty association expenses are subordinate to other administrative costs and must be reimbursed as prescribed by Section 545.

Revises Section 545 regarding guaranty fund expenses, specifying they receive lower priority than liquidator's expenses and other administration costs, while maintaining guaranty funds' status as recognized claimants in liquidations.