Sen. William R. Haine

Filed: 5/21/2013

 

 


 

 


 
09800HB2618sam003LRB098 09390 RPM 46197 a

1
AMENDMENT TO HOUSE BILL 2618

2    AMENDMENT NO. ______. Amend House Bill 2618, AS AMENDED, by
3replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Illinois Insurance Code is amended by
6changing Section 805.1 as follows:
 
7    (215 ILCS 5/805.1)
8    Sec. 805.1. Mine Subsidence Coverage.
9    (a) Beginning January 1, 1994, every policy issued or
10renewed insuring a residence on a direct basis shall include,
11at a separately stated premium, residential coverage unless
12waived in writing by the insured. Beginning January 1, 1994,
13every policy issued or renewed insuring a commercial building
14on a direct basis shall include at a separately stated premium,
15commercial coverage unless waived in writing by the insured.
16Beginning January 1, 1994, every policy issued or renewed

 

 

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1insuring a living unit on a direct basis shall include, at a
2separately stated premium, living unit coverage unless waived
3in writing by the insured.
4    (b) If the insured has previously waived mine subsidence
5coverage in writing, the insurer or agent need not offer mine
6subsidence coverage in any renewal or supplementary policy in
7connection with a policy previously issued to such insured by
8the same insurer, unless the insured subsequently makes a
9written request for mine subsidence coverage.
10    (c) The premium charged for residential, commercial or
11living unit coverage shall be the premium level set by the
12Fund. The loss covered shall be the loss in excess of the
13deductible or retention established by the Fund and contained
14in a mine subsidence endorsement to the policy. For all
15policies issued or renewed on or after January 1, 2008, the
16reinsured loss per residence, per commercial building, and per
17living unit shall be the amounts established by the Fund and
18approved by the Director. For all policies issued or renewed on
19or after January 1, 1996, the amount of reinsurance available
20from the Fund shall not be less than $200,000 per residence,
21$200,000 per commercial building, or $15,000 per living unit.
22The Fund may, from time to time, adjust the amount of
23reinsurance available as long as the minimum set by this
24Section is met.
25    (d) The residential coverage provided pursuant to this
26Article may also cover the additional living expenses

 

 

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1reasonably and necessarily incurred by the owner of a residence
2who has been temporarily displaced as the direct result of
3damage to the residence caused by mine subsidence if the
4underlying policy also covers this type of loss, provided
5however, that the loss covered under living unit coverage shall
6be limited to losses to improvements and betterments, and
7reimbursement of additional living expenses and assessments
8made against the insured on account of mine subsidence loss.
9    (e) The total amount of the loss reimbursable to an insurer
10shall be limited to the amount of insurance reinsured by the
11Fund in force at the time when the damage first becomes
12reasonably observable. All damage caused by a single mine
13subsidence event or several subsidence events which are
14continuous shall constitute one occurrence. As set forth in
15subsections (a) and (c) of this Section, a policy issued or
16renewed must provide coverage, unless waived in writing by the
17insured, and the insurer must continue to charge the premium
18level set for that coverage by the Fund. If mine subsidence
19coverage is in force when the mine subsidence damage first
20becomes reasonably observable, then the insurer shall notify
21the insured making the mine subsidence claim that continuation
22of that coverage thereafter may not be necessary and is
23optional, but that continued coverage shall terminate only upon
24written waiver by the insured. This notification shall be made
25within 60 days after the insurer receives written confirmation
26from the Fund that the cause of loss is active mine subsidence.

 

 

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1    (f) No insurer shall be required to offer mine subsidence
2coverage in excess of the reinsured limits.
3(Source: P.A. 95-92, eff. 1-1-08; 95-334, eff. 1-1-08.)".