SB3174 Summary

• Amends the Illinois Insurance Code Sections 534.3 and 534.4, but only if Senate Bill 1737 of the 100th General Assembly becomes law in the same form passed on May 31, 2018.

• Expands the definition of "insolvent company" to include companies that have assumed or been allocated policy obligations through merger, division, consolidation, or reinsurance, even if they did not hold a certificate of authority in Illinois.

• Modifies the definition of "covered claim" to include claims under policies issued by companies that are "assuming, or being allocated" obligations, extending coverage protections.

• Defines "unearned premium" as the premium for unexpired policy periods when a policy is terminated before expiration, making it eligible for coverage under the insurance guaranty fund.

• Takes effect upon becoming law or when Senate Bill 1737 becomes law, whichever occurs later.