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91_HB1470ham001
LRB9102973JSpcam
1 AMENDMENT TO HOUSE BILL 1470
2 AMENDMENT NO. . Amend House Bill 1470 by replacing
3 the title with the following:
4 "AN ACT to amend the Illinois Insurance Code by changing
5 Section 803.1."; and
6 by replacing everything after the enacting clause with the
7 following:
8 "Section 5. The Illinois Insurance Code is amended by
9 changing Section 803.1 as follows:
10 (215 ILCS 5/803.1)
11 Sec. 803.1. Establishment of Fund.
12 (a) There is established a fund to be known as the
13 "Illinois Mine Subsidence Insurance Fund". The Fund shall
14 operate pursuant to this Article. The Fund is authorized to
15 transact business, provide services, enter into contracts and
16 sue or be sued in its own name.
17 (b) The Fund shall provide reinsurance for mine
18 subsidence losses to all insurers writing mine subsidence
19 insurance pursuant to this Article.
20 (c) The monies in the Fund shall be derived from
21 premiums for mine subsidence insurance collected on behalf of
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1 the Fund pursuant to this Article, from investment income and
2 from receipt of Federal or State funds. No insurer shall
3 have any liability to the Fund or to any creditor of the
4 Fund, except as may be set forth in this Article, in the
5 Articles of Governance which may be adopted by the Fund, in a
6 reinsurance agreement executed pursuant to Section paragraph
7 810.1, in the Plan of Operation established by the Fund, or
8 in the rules and procedures adopted by the Fund as authorized
9 by the reinsurance agreement.
10 (d) The Fund shall establish the rates, rating
11 schedules, deductibles and retentions, minimum premiums, and
12 classifications for mine subsidence insurance which the Fund
13 shall file with the Director. The Director shall have 30
14 days from the date of receipt to approve or disapprove a rate
15 filing. If no action is taken by the Director within 30
16 days, the rate is deemed to be approved. The Director may,
17 in writing, extend the period for an additional 30 days if
18 the Director determines that additional time is needed.
19 (e) The Fund shall establish its rates, rating
20 schedules, deductibles and retentions, minimum premiums, and
21 classification in such a manner as to satisfy all reasonably
22 foreseeable claims and expenses the Fund is likely to incur.
23 The Fund shall give due consideration to loss experience and
24 relevant trends, premium and other income and reasonable
25 reserves established for contingencies in establishing the
26 mine subsidence rates.
27 (f) The Fund shall compile and publish an annual
28 operating report.
29 (g) The Fund shall develop at least 2 consumer
30 information publications to aid the public in understanding
31 mine subsidence and mine subsidence insurance and shall
32 establish a schedule for the distribution of the publications
33 pursuant to the reinsurance agreement. Topics that shall be
34 addressed shall include but are not limited to:
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1 (1) Descriptive information about mine subsidence,
2 and what benefits mine subsidence insurance provides to
3 the property owner.
4 (2) Information that will be useful to a
5 policyholder who has filed a mine subsidence claim, such
6 as information that explains the claim investigation
7 process and claim handling procedures.
8 (h) The Fund shall be empowered to conduct research
9 programs in an effort to improve the administration of the
10 mine subsidence insurance program and help reduce and
11 mitigate mine subsidence losses consistent with the public
12 interest.
13 (i) The Fund may enter into reinsurance agreements with
14 any intergovernmental cooperative that provides joint
15 self-insurance for mine subsidence losses of its members.
16 These reinsurance agreements shall be substantially similar
17 to reinsurance agreements described in Section 810.1.
18 (Source: P.A. 89-206, eff. 7-21-95; 90-499, eff. 8-19-97;
19 revised 10-31-98.)".