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Under an Order of Rehabilitation, the Director of Insurance becomes Rehabilitator of an
insurance company and, as Rehabilitator, is vested with title to the company's property,
assets, rights of action or lawsuits, books, records and premises. Rehabilitation can
be used as a mechanism by which the Rehabilitator tries to restructure or run-off the company's business.
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The company I'm insured with has entered rehabilitation, what will happen to my policy?
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Your policy may be kept in-force, modified or cancelled by court order, non-renewed, sold or transferred to
another company, or cancelled by your agent.
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I have a claim against a company in rehabilitation, what do I do?
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If the court supervising the proceedings enters an order of rehabilitation on petition of the Director of
Insurance, the court will also approve a mechanism for handling claims. Potential claimants of the company, as
identified in the company's books and records, will be given notice by the Rehabilitator as to how to proceed.
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Who can propose a Plan of Rehabilitation to the supervisory court?
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In Illinois, only the Director of Insurance, as Rehabilitator, can submit a proposed plan of rehabilitation
to the court supervising the receivership proceeding.
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