Public Act 095-0334
 
SB0555 Enrolled LRB095 09976 KBJ 30189 b

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