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Public Act 098-1007
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| SB3504 Enrolled | LRB098 18973 RPM 55582 b |
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AN ACT concerning regulation.
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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 Section 805.1 as follows:
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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 |
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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, 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. As set forth in |
subsections (a) and (c) of this Section, a policy issued or |
renewed must provide coverage, unless waived in writing by the |
insured, and the insurer must continue to charge the premium |
level set for that coverage by the Fund. If mine subsidence |
coverage is in force when the mine subsidence damage first |
becomes reasonably observable, then the insurer shall notify |
the insured making the mine subsidence claim that continuation |
of that coverage thereafter may not be necessary and is |
optional, but that continued coverage on the damaged residence |
or commercial building shall terminate only upon written waiver |
by the insured. The notification shall be made within 60 days |
after the insurer receives written confirmation from the Fund |
that the cause of loss is active mine subsidence. The |
notification shall be in the form of a separate mailing to the |
insured from the insurer via the United States Postal Service |
and shall include notification to the insured that mine |
subsidence premiums paid for coverage on a damaged residence or |
commercial building subsequent to the established date of loss |
shall be refunded to the insured within 60 days after the |
insured provides a signed waiver of mine subsidence coverage to |