Community Unit School District 200 v. Illinois Insurance Guaranty Fund

The General Assembly created the Illinois Insurance Guaranty Fund (the Fund) to assume the obligations of insolvent insurance companies. Community Unit School District No. 200 (the District) saw its workers’ compensation insurer declared insolvent. It thereafter submitted three pending workers’ compensation claims to the Fund for payment. The Fund declined coverage, citing a statutory provision that an entity with a net worth of more than $25 million was not entitled to coverage. The District sued the Fund, claiming that it wrongfully refused to pay the claims. The trial court granted the…