Illinois Director of Insurance filed action against 3 insurance companies, seeking to liquidate their assets. Guarantee Association objected on grounds that petition improperly required it to reimburse itself from funds held in a special deposit. The funds held in special deposits are not general assets of the insurance companies' estate.The funds in question are held in a special deposit as security for payment of workers' compensation claims in California, and are, per statutory language, expressly excluded from general assets of the insurance companies' estate. Thus, because these funds were "deposited as security" for special benefit of local policyholders in California, they are not "general assets" of the companies' estate. (CUNNINGHAM and DELORT, concurring.)
Illinois Appellate Court
Civil Court
Insurance