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TABLE OF CONTENTS

• CITATION
• STATUS
• WHAT'S NEW
• ENACTED TEXT

CITATION
2007 IL H 1004


STATUS
This legislation was assigned the status of Enacted
 on 08/13/2007.

Author: Mautino
Session: Illinois 95th General Assembly
StateNet Processing Date: 08/14/2007


ENACTED TEXT
    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.)

WHAT'S NEW
Description of Changes
There are no recorded changes for this document.

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