Illinois Compiled Statutes 215 ILCS 5/814.1 – Right of Recourse
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(a) The Fund shall have no right of recourse against the insurer, once the Fund has reimbursed the insurer for any particular loss, unless the insurer has failed to settle that loss in its customary manner, or in case of fraud by the insurer.
(b) The Fund may seek recovery against the policyholder for unjust enrichment if, in the Fund’s judgment, the policyholder was not entitled to the amounts paid because of fraud, or a material violation of the policy conditions. The insurer shall provide cooperation to the Fund.
(b) The Fund may seek recovery against the policyholder for unjust enrichment if, in the Fund’s judgment, the policyholder was not entitled to the amounts paid because of fraud, or a material violation of the policy conditions. The insurer shall provide cooperation to the Fund.
Terms Used In Illinois Compiled Statutes 215 ILCS 5/814.1
- Fraud: Intentional deception resulting in injury to another.
- Fund: means the fund established by this Article. See Illinois Compiled Statutes 215 ILCS 5/802.1
- Recourse: An arrangement in which a bank retains, in form or in substance, any credit risk directly or indirectly associated with an asset it has sold (in accordance with generally accepted accounting principles) that exceeds a pro rata share of the bank's claim on the asset. If a bank has no claim on an asset it has sold, then the retention of any credit risk is recourse. Source: FDIC