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90_HB0829eng
215 ILCS 5/802.1
Amends the Illinois Insurance Code in relation to mine
subsidence insurance. Includes within the definition of
"insurer" intergovernmental cooperatives that provide
Standard Fire Policy and Extended Coverage Endorsements.
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1 AN ACT to amend the Illinois Insurance Code by changing
2 Sections 802.1 and 803.1.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Insurance Code is amended by
6 changing Sections 802.1 and 803.1 as follows:
7 (215 ILCS 5/802.1)
8 Sec. 802.1. Definitions. As used in this Article:
9 (a) "Commercial Building" means any building, other than
10 a residence, permanently affixed to realty located in
11 Illinois, including basements, footings, foundations, septic
12 systems and underground pipes directly servicing the
13 building, but does not include sidewalks, driveways, parking
14 lots, living units, land, trees, plants, crops or
15 agricultural field drainage tile.
16 (b) "Commercial Coverage" means mine subsidence
17 insurance for a commercial building.
18 (c) "Insurer" or "Insurers" means insurance companies
19 and reciprocals licensed and authorized to write Class 3
20 policies of insurance, as defined in this Code, within
21 Illinois and also means intergovernmental cooperatives
22 organized pursuant to Article VII, Section 10 of the Illinois
23 Constitution and the Intergovernmental Cooperation Act,
24 which provide the coverage of the standard fire policy and
25 extended coverage endorsement on a residence, living unit, or
26 commercial building within Illinois.
27 (d) "Living Unit" shall mean that physical portion
28 designated for separate ownership or occupancy for
29 residential purposes, of a building or group of buildings,
30 permanently affixed to realty located in Illinois, having
31 elements which are owned or used in common, including a
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1 condominium unit, a cooperative unit or any other similar
2 unit.
3 (e) "Living Unit Coverage" means mine subsidence
4 insurance for a living unit covering the losses described in
5 Section 805.1(d).
6 (f) "Mine Subsidence" means lateral or vertical ground
7 movement caused by a failure initiated at the mine level, of
8 man-made underground mines, including, but not limited to
9 coal mines, clay mines, limestone mines, and fluorspar mines
10 that directly damages residences or commercial buildings.
11 "Mine Subsidence" does not include lateral or vertical ground
12 movement caused by earthquake, landslide, volcanic eruption,
13 soil conditions, soil erosion, soil freezing and thawing,
14 improperly compacted soil, construction defects, roots of
15 trees and shrubs or collapse of storm and sewer drains and
16 rapid transit tunnels.
17 (g) "Mine Subsidence Insurance Fund" or "Fund" means the
18 fund established by this Article.
19 (h) "Policy" or "policies" means any contract or
20 contracts of insurance, including joint self-insurance issued
21 by an intergovernmental cooperative organized pursuant to the
22 Article VII, Section 10 of the Illinois Constitution and the
23 Intergovernmental Cooperation Act, providing the coverage of
24 the Standard Fire Policy and Extended Coverage Endorsement on
25 any residence, living unit or commercial building. It does
26 not include those insurance contracts that are referred to as
27 marine or inland marine policies.
28 (i) "Premium" or "premiums" means the gross amount
29 charged to policyholders for the mine subsidence insurance
30 made available under this Article.
31 (j) "Rates" or "rate schedules" means the rates by which
32 premiums shall be computed for the mine subsidence insurance
33 made available under this Article.
34 (k) "Residence" means a building used principally for
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1 residential purposes up to and including a four family
2 dwelling, permanently affixed to realty located in Illinois,
3 including appurtenant structures, driveways, sidewalks,
4 basements, footings, foundations, septic systems and
5 underground pipes directly servicing the dwelling or
6 building, but does not include living units, land, trees,
7 plants, crops or agricultural field drainage tile.
8 (l) "Residential Coverage" means mine subsidence
9 insurance for a residence.
10 (m) "Intergovernmental cooperative" means an
11 intergovernmental cooperative organized pursuant to Article
12 VII, Section 10 of the Illinois Constitution and Section 6 of
13 the Intergovernmental Cooperation Act.
14 (Source: P.A. 88-379.)
15 (215 ILCS 5/803.1)
16 Sec. 803.1. Establishment of Fund.
17 (a) There is established a fund to be known as the
18 "Illinois Mine Subsidence Insurance Fund". The Fund shall
19 operate pursuant to this Article. The Fund is authorized to
20 transact business, provide services, enter into contracts and
21 sue or be sued in its own name.
22 (b) The Fund shall provide reinsurance for mine
23 subsidence losses to all insurers writing mine subsidence
24 insurance pursuant to this Article.
25 (c) The monies in the Fund shall be derived from
26 premiums for mine subsidence insurance collected on behalf of
27 the Fund pursuant to this Article, from investment income and
28 from receipt of Federal or State funds. No insurer shall
29 have any liability to the Fund or to any creditor of the
30 Fund, except as may be set forth in this Article, in the
31 Articles of Governance which may be adopted by the Fund, in a
32 reinsurance agreement executed pursuant to paragraph 810.1,
33 in the Plan of Operation established by the Fund, or in the
34 rules and procedures adopted by the Fund as authorized by the
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1 reinsurance agreement.
2 (d) The Fund shall establish the rates, rating
3 schedules, deductibles and retentions, minimum premiums, and
4 classifications for mine subsidence insurance which the Fund
5 shall file with the Director. The Director shall have 30
6 days from the date of receipt to approve or disapprove a rate
7 filing. If no action is taken by the Director within 30
8 days, the rate is deemed to be approved. The Director may,
9 in writing, extend the period for an additional 30 days if
10 the Director determines that additional time is needed.
11 (e) The Fund shall establish its rates, rating
12 schedules, deductibles and retentions, minimum premiums, and
13 classification in such a manner as to satisfy all reasonably
14 foreseeable claims and expenses the Fund is likely to incur.
15 The Fund shall give due consideration to loss experience and
16 relevant trends, premium and other income and reasonable
17 reserves established for contingencies in establishing the
18 mine subsidence rates.
19 (f) The Fund shall compile and publish an annual
20 operating report.
21 (g) The Fund shall develop at least 2 consumer
22 information publications to aid the public in understanding
23 mine subsidence and mine subsidence insurance and shall
24 establish a schedule for the distribution of the publications
25 pursuant to the reinsurance agreement. Topics that shall be
26 addressed shall include but are not limited to:
27 (1) Descriptive information about mine subsidence,
28 and what benefits mine subsidence insurance provides to
29 the property owner.
30 (2) Information that will be useful to a
31 policyholder who has filed a mine subsidence claim, such
32 as information that explains the claim investigation
33 process and claim handling procedures.
34 (h) The Fund shall be empowered to conduct research
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1 programs in an effort to improve the administration of the
2 mine subsidence insurance program and help reduce and
3 mitigate mine subsidence losses consistent with the public
4 interest.
5 (i) The Fund may enter into reinsurance agreements with
6 any intergovernmental cooperative that provides joint
7 self-insurance for mine subsidence losses of its members.
8 These reinsurance agreements shall be substantially similar
9 to reinsurance agreements described in Section 810.1.
10 (Source: P.A. 88-379; 89-206, eff. 7-21-95.)