UNAUTHORIZED FOREIGN OR ALIEN INSURERS NOT REQUIRED TO POST SECURITY PRIOR TO FILING A MOTION
Section 5/123(5) of the Illinois Insurance Code requires unauthorized foreign and alien company’s to post security prior to filing a pleading in any action or arbitration proceeding. An explicit exception is made for the filing of a motion to quash process or set aside service. The Northern District of Illinois recently interpreted this section of the Insurance Code in coverage litigation between an insured and its insurer and determined that the “language does not suggest that the excepted motions are exclusive.” Based on that reasoning, the court denied plaintiff’s motion for an order requiring the defendant to post security prior to filing a motion. Baxter International, Inc. v. AXA Versicherung, Case No. 1:11-cv-09131 (USDC N.D. Ill. Jan. 11, 2013).
This post written by Abigail Kortz.
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