Full Text of SB0555 95th General Assembly
SB0555 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 SB0555
Introduced 2/8/2007, by Sen. William R. Haine SYNOPSIS AS INTRODUCED: |
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215 ILCS 5/803.1 |
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215 ILCS 5/805.1 |
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Amends the Illinois Insurance Code. Provides that the Illinois Mine Subsidence
Insurance Fund shall establish the maximum amount of reinsurance available per residence, commercial building, and living unit for mine subsidence insurance. Provides that, for all policies issued or renewed on or after January 1, 2008, the reinsured loss per residence, per commercial building, and per living unit shall be the amounts established by the Fund and approved by the Director (now, the reinsured loss shall not exceed
$350,000 per residence, $350,000 per commercial building, or $15,000 per living
unit).
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A BILL FOR
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SB0555 |
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LRB095 09976 KBJ 30189 b |
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| AN ACT concerning insurance.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Insurance Code is amended by | 5 |
| changing Sections 803.1 and 805.1 as follows:
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| (215 ILCS 5/803.1)
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| Sec. 803.1. Establishment of Fund.
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| (a) There is established a fund to be known as the | 9 |
| "Illinois Mine Subsidence
Insurance Fund". The Fund shall | 10 |
| operate pursuant to this Article. The Fund is
authorized to | 11 |
| transact business, provide services, enter into contracts and | 12 |
| sue
or be sued in its own name.
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| (b) The Fund shall provide reinsurance for mine subsidence | 14 |
| losses to all
insurers writing mine subsidence insurance | 15 |
| pursuant to this Article.
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| (c) The monies in the Fund shall be derived from premiums | 17 |
| for mine
subsidence
insurance collected on behalf of the Fund | 18 |
| pursuant to this Article, from
investment income and from | 19 |
| receipt of Federal or State funds. No insurer shall
have any | 20 |
| liability to the Fund or to any creditor of the Fund, except as | 21 |
| may be
set forth in this Article, in the Articles of Governance | 22 |
| which may be adopted
by the Fund, in a reinsurance agreement | 23 |
| executed pursuant to Section 810.1,
in
the Plan of Operation |
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| established by the Fund, or in the rules and procedures
adopted | 2 |
| by the Fund as authorized by the reinsurance agreement.
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| (d) The Fund shall establish its
the rates, rating | 4 |
| schedules, deductibles and
retentions, minimum premiums,
and | 5 |
| classifications , and the maximum amount of reinsurance | 6 |
| available per residence, commercial building, and living unit | 7 |
| for mine subsidence insurance which the Fund shall file
with | 8 |
| the Director. The Director shall have 30 days from the
date of
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| receipt to approve or disapprove a rate filing. If no action is | 10 |
| taken by the
Director within 30 days, the rate is deemed to be | 11 |
| approved. The
Director
may, in writing, extend the period for | 12 |
| an additional 30 days if
the
Director
determines that | 13 |
| additional time is needed.
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| (e) The Fund shall establish its rates, rating schedules, | 15 |
| deductibles and
retentions, minimum premiums,
classifications, | 16 |
| and the maximum amount of reinsurance available per residence, | 17 |
| commercial building, and living unit
and classification in such | 18 |
| a manner as to satisfy all reasonably foreseeable
claims and | 19 |
| expenses the Fund is likely to incur. The Fund shall give due
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| consideration to loss experience and relevant trends, premium | 21 |
| and other income
and reasonable reserves established for | 22 |
| contingencies in establishing the mine
subsidence rates.
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| (f) The Fund shall compile and publish an annual operating | 24 |
| report.
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| (g) The Fund shall develop at least 2 consumer information | 26 |
| publications to
aid the public in understanding mine subsidence |
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| and mine subsidence insurance
and shall establish a schedule | 2 |
| for the distribution of the publications
pursuant
to the | 3 |
| reinsurance agreement. Topics that shall be addressed shall | 4 |
| include but
are not limited to:
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| (1) Descriptive information about mine subsidence, and | 6 |
| what benefits mine
subsidence insurance provides to the | 7 |
| property owner.
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| (2) Information that will be useful to a policyholder | 9 |
| who has filed a mine
subsidence claim, such as information | 10 |
| that explains the claim investigation
process and claim | 11 |
| handling procedures.
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| (h) The Fund shall be empowered to conduct research | 13 |
| programs in an effort to
improve the administration of the mine | 14 |
| subsidence insurance program and help
reduce and mitigate mine | 15 |
| subsidence losses consistent with the public
interest.
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| (i) The Fund may enter into reinsurance agreements with any
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| intergovernmental cooperative that provides joint | 18 |
| self-insurance for mine
subsidence losses of its members. These | 19 |
| reinsurance agreements shall be
substantially similar to | 20 |
| reinsurance agreements described in Section 810.1.
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| (Source: P.A. 90-499, eff. 8-19-97; 91-357, eff. 7-29-99.)
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| (215 ILCS 5/805.1)
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| Sec. 805.1. Mine Subsidence Coverage.
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| (a) Beginning January 1, 1994, every policy issued or | 25 |
| renewed insuring a
residence on a direct basis shall include, |
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| at a separately stated premium,
residential coverage unless | 2 |
| waived in writing by the insured. Beginning
January 1, 1994, | 3 |
| every policy issued or renewed insuring a commercial building
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| on a direct basis shall include at a separately stated premium, | 5 |
| commercial
coverage unless waived in writing by the insured. | 6 |
| Beginning January 1, 1994,
every policy issued or renewed | 7 |
| insuring a living unit on a direct basis shall
include, at a | 8 |
| separately stated premium, living unit coverage unless waived | 9 |
| in
writing by the insured.
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| (b) If the insured has previously waived mine subsidence | 11 |
| coverage in
writing,
the insurer or agent need not offer mine | 12 |
| subsidence coverage in any renewal or
supplementary policy in | 13 |
| connection with a policy previously issued to such
insured by | 14 |
| the same insurer, unless the insured subsequently makes a | 15 |
| written
request for mine subsidence coverage.
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| (c) The premium charged for residential, commercial or | 17 |
| living unit coverage
shall be the
premium level set by the | 18 |
| Fund. The loss covered shall be the loss in excess of
the | 19 |
| deductible or retention established by the Fund and contained | 20 |
| in a
mine subsidence endorsement to the policy. For all | 21 |
| policies issued or renewed on or after January 1, 2008, the | 22 |
| reinsured loss per residence, per commercial building, and per | 23 |
| living unit shall be the amounts established by the Fund and | 24 |
| approved by the Director.
For all policies issued
or renewed on | 25 |
| or after January 1, 1994, the reinsured loss shall not exceed
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| $350,000 per residence, $350,000 per commercial building or |
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| $15,000 per living
unit.
For all policies issued or renewed on | 2 |
| or after January 1, 1996, the amount of
reinsurance available | 3 |
| from the Fund shall not be less than $200,000 per
residence, | 4 |
| $200,000 per commercial building, or $15,000 per living unit. | 5 |
| The
Fund may, from time to time, adjust the amount of | 6 |
| reinsurance available as long
as the minimum set by this | 7 |
| Section is met.
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| (d) The residential coverage provided pursuant to this | 9 |
| Article may also
cover
the additional living expenses | 10 |
| reasonably and necessarily incurred by the owner
of a residence | 11 |
| who has been temporarily displaced as the direct result of
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| damage to the residence caused by mine subsidence if the | 13 |
| underlying policy also
covers this type of loss, provided | 14 |
| however, that the loss covered under living
unit coverage shall | 15 |
| be limited to losses to improvements
and betterments, and | 16 |
| reimbursement of additional living expenses and
assessments | 17 |
| made against the insured on account of mine subsidence loss.
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| (e) The total amount of the loss reimbursable to an insurer | 19 |
| shall be limited
to the amount of
insurance reinsured by the | 20 |
| Fund in force at the time when the damage first
becomes | 21 |
| reasonably observable. All damage caused by a single mine | 22 |
| subsidence
event or several subsidence events which are | 23 |
| continuous shall constitute one
occurrence.
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| (f) No insurer shall be required to offer mine subsidence | 25 |
| coverage in
excess of the reinsured limits.
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| (Source: P.A. 88-379; 89-206, eff. 7-21-95.)
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