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| Public Act 095-0092 |
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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 | ||||
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 | ||||
"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.
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(b) The Fund shall provide reinsurance for mine subsidence | ||||
losses to all
insurers writing mine subsidence insurance | ||||
pursuant to this Article.
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(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.
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(d) The Fund shall establish its
the rates, rating | ||
schedules, deductibles and
retentions, minimum premiums,
and
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classifications, and the maximum amount of reinsurance | ||
available per residence, commercial building, and living unit
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for mine subsidence insurance which the Fund shall file
with | ||
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 | ||
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.
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(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
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consideration to loss experience and relevant trends, premium | ||
and other income
and reasonable reserves established for | ||
contingencies in establishing the mine
subsidence rates.
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(f) The Fund shall compile and publish an annual operating | ||
report.
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(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:
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(1) Descriptive information about mine subsidence, and | ||
what benefits mine
subsidence insurance provides to the | ||
property owner.
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(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.
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(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.
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(i) The Fund may enter into reinsurance agreements with any
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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.
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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 | ||
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
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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.
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(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.
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(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
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$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.
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(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
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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.
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(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.
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(f) No insurer shall be required to offer mine subsidence | ||
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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