Ill. Appellate Panel Affirms ‘General Creditor’ Priority Level for Legion Reinsurer’s Claim

CHICAGO — An Illinois appellate panel has affirmed that a claim for unpaid premiums, attorneys’ fees and arbitration interest asserted by the reinsurer of an insolvent insurer should be distributed at the priority level for claims of general creditors rather than at the level for costs and expenses of administration.

In a May 12 opinion, the Illinois Court of Appeal, 1st District, panel explained that “the Illinois legislature did not intend to include as costs and expenses of administration an adverse award of attorney fees, costs, and interest of a claimant incurred while defending a claim from the Director, …