Crossword Genius

Laid up in old island state (8)

Ross

I believe the answer is:

illinois

'state' is the definition.
(Illinois is an example)

'laid up in old island' is the wordplay.
'laid up' becomes 'ill' (similar in meaning).
'old' becomes 'o' (common abbreviation eg in OE for Old English).
'island' becomes 'is'.
'ill'+'in'+'o'+'is'='ILLINOIS'

(Other definitions for illinois that I've seen before include "USstate (Chicago)" , "State to west of Indiana" , "The Prairie State" , "US state and river" , "Chicago state" .)

I've seen this clue in The Guardian.
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