diff --git a/java/java-psi-api/src/com/intellij/psi/util/TypeConversionUtil.java b/java/java-psi-api/src/com/intellij/psi/util/TypeConversionUtil.java
index 09ef657b4c4a..2a40bbb34bcb 100644
--- a/java/java-psi-api/src/com/intellij/psi/util/TypeConversionUtil.java
+++ b/java/java-psi-api/src/com/intellij/psi/util/TypeConversionUtil.java
@@ -896,7 +896,6 @@ public class TypeConversionUtil {
     PsiSubstitutor leftSubstitutor = leftResult.getSubstitutor();
 
     if (!leftClass.getManager().areElementsEquivalent(leftClass, rightClass)) {
-      if (!allowUncheckedConversion && PsiUtil.isRawSubstitutor(leftClass, leftSubstitutor) && !rightClass.hasTypeParameters() && !(rightClass instanceof PsiTypeParameter)) return false;
       rightSubstitutor = getSuperClassSubstitutor(leftClass, rightClass, rightSubstitutor);
       rightClass = leftClass;
     }
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/IDEA103760.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/IDEA103760.java
new file mode 100644
index 000000000000..93d1143959a9
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/IDEA103760.java
@@ -0,0 +1,9 @@
+import java.util.*;
+public class MyList extends ArrayList {}
+
+public class Test {
+    public void test() {
+        List<? super List> list = new ArrayList<List>();
+        list.add(new MyList());
+    }
+}
\ No newline at end of file
diff --git a/java/java-tests/testSrc/com/intellij/codeInsight/daemon/GenericsHighlightingTest.java b/java/java-tests/testSrc/com/intellij/codeInsight/daemon/GenericsHighlightingTest.java
index 9ce2daa03861..180acb567f08 100644
--- a/java/java-tests/testSrc/com/intellij/codeInsight/daemon/GenericsHighlightingTest.java
+++ b/java/java-tests/testSrc/com/intellij/codeInsight/daemon/GenericsHighlightingTest.java
@@ -204,6 +204,8 @@ public class GenericsHighlightingTest extends LightDaemonAnalyzerTestCase {
   public void testIDEA99061() { doTest5(false); }
   public void testIDEA99347() { doTest5(false); }
   public void testIDEA86875() { doTest5(false); }
+  public void testIDEA103760(){ doTest5(false); }
+
   public void testWildcardsOnRawTypes() { doTest5(false); }
   public void testDisableWithinBoundsCheckForSuperWildcards() {
     doTest(LanguageLevel.JDK_1_7, JavaSdkVersion.JDK_1_7, false);