Illinois General Assembly - Full Text of SB3504
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Full Text of SB3504  98th General Assembly




SB3504 EnrolledLRB098 18973 RPM 55582 b

1    AN ACT concerning regulation.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Illinois Insurance Code is amended by
5changing Section 805.1 as follows:
6    (215 ILCS 5/805.1)
7    Sec. 805.1. Mine Subsidence Coverage.
8    (a) Beginning January 1, 1994, every policy issued or
9renewed insuring a residence on a direct basis shall include,
10at a separately stated premium, residential coverage unless
11waived in writing by the insured. Beginning January 1, 1994,
12every policy issued or renewed insuring a commercial building
13on a direct basis shall include at a separately stated premium,
14commercial coverage unless waived in writing by the insured.
15Beginning January 1, 1994, every policy issued or renewed
16insuring a living unit on a direct basis shall include, at a
17separately stated premium, living unit coverage unless waived
18in writing by the insured.
19    (b) If the insured has previously waived mine subsidence
20coverage in writing, the insurer or agent need not offer mine
21subsidence coverage in any renewal or supplementary policy in
22connection with a policy previously issued to such insured by
23the same insurer, unless the insured subsequently makes a



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1written request for mine subsidence coverage.
2    (c) The premium charged for residential, commercial or
3living unit coverage shall be the premium level set by the
4Fund. The loss covered shall be the loss in excess of the
5deductible or retention established by the Fund and contained
6in a mine subsidence endorsement to the policy. For all
7policies issued or renewed on or after January 1, 2008, the
8reinsured loss per residence, per commercial building, and per
9living unit shall be the amounts established by the Fund and
10approved by the Director. For all policies issued or renewed on
11or after January 1, 1996, the amount of reinsurance available
12from the Fund shall not be less than $200,000 per residence,
13$200,000 per commercial building, or $15,000 per living unit.
14The Fund may, from time to time, adjust the amount of
15reinsurance available as long as the minimum set by this
16Section is met.
17    (d) The residential coverage provided pursuant to this
18Article may also cover the additional living expenses
19reasonably and necessarily incurred by the owner of a residence
20who has been temporarily displaced as the direct result of
21damage to the residence caused by mine subsidence if the
22underlying policy also covers this type of loss, provided
23however, that the loss covered under living unit coverage shall
24be limited to losses to improvements and betterments, and
25reimbursement of additional living expenses and assessments
26made against the insured on account of mine subsidence loss.



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1    (e) The total amount of the loss reimbursable to an insurer
2shall be limited to the amount of insurance reinsured by the
3Fund in force at the time when the damage first becomes
4reasonably observable. All damage caused by a single mine
5subsidence event or several subsidence events which are
6continuous shall constitute one occurrence. As set forth in
7subsections (a) and (c) of this Section, a policy issued or
8renewed must provide coverage, unless waived in writing by the
9insured, and the insurer must continue to charge the premium
10level set for that coverage by the Fund. If mine subsidence
11coverage is in force when the mine subsidence damage first
12becomes reasonably observable, then the insurer shall notify
13the insured making the mine subsidence claim that continuation
14of that coverage thereafter may not be necessary and is
15optional, but that continued coverage on the damaged residence
16or commercial building shall terminate only upon written waiver
17by the insured. The notification shall be made within 60 days
18after the insurer receives written confirmation from the Fund
19that the cause of loss is active mine subsidence. The
20notification shall be in the form of a separate mailing to the
21insured from the insurer via the United States Postal Service
22and shall include notification to the insured that mine
23subsidence premiums paid for coverage on a damaged residence or
24commercial building subsequent to the established date of loss
25shall be refunded to the insured within 60 days after the
26insured provides a signed waiver of mine subsidence coverage to



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1the insurer. The notification shall be accompanied by a waiver
2of coverage form for the insured to sign and return to the
4    (f) No insurer shall be required to offer mine subsidence
5coverage in excess of the reinsured limits.
6(Source: P.A. 95-92, eff. 1-1-08; 95-334, eff. 1-1-08.)