HB 5376 — MINE SUBSIDENCE INSURANCE FUND

HB5376 EngrossedEnrolled LRB104 20354 BAB 33809 b AN ACT concerning regulation.

(a) "Commercial building Building" means any building that is classified by the insurer as a commercial building and is , other than a residence, permanently affixed to realty located HB5376 EngrossedEnrolled - 2 - LRB104 20354 BAB 33809 b in Illinois, including basements, footings, foundations, septic systems and underground pipes directly servicing the building.

(f) "Mine subsidence Subsidence" means lateral or vertical HB5376 EngrossedEnrolled - 3 - LRB104 20354 BAB 33809 b ground movement caused by a failure initiated at the mine level, of man-made underground mineral mines, including, but not limited to coal mines, clay mines, limestone mines, and fluorspar mines that directly damages residences, living units, or commercial buildings.

HB5376 EngrossedEnrolled - 4 - LRB104 20354 BAB 33809 b (j) "Rates" or "rate schedules" means the rates by which premiums shall be computed for the mine subsidence insurance made available under this Article.

The Fund shall HB5376 EngrossedEnrolled - 5 - LRB104 20354 BAB 33809 b operate pursuant to this Article.

The Director shall have 30 days from the date of receipt to approve HB5376 EngrossedEnrolled - 6 - LRB104 20354 BAB 33809 b or disapprove a rate filing.

(1) Descriptive information about mine subsidence, and HB5376 EngrossedEnrolled - 7 - LRB104 20354 BAB 33809 b what benefits mine subsidence insurance provides to the property owner.

The HB5376 EngrossedEnrolled - 8 - LRB104 20354 BAB 33809 b industry directors shall be elected to 3-year staggered terms annually in the manner provided in Articles of Governance adopted by the Fund.

No later than the date of the next annual meeting of the Fund following the effective date of this amendatory Act of 1994, HB5376 EngrossedEnrolled - 9 - LRB104 20354 BAB 33809 b the Director shall appoint the Illinois licensed insurance producer for a 2-year term.

HB5376 EngrossedEnrolled - 10 - LRB104 20354 BAB 33809 b (b) If the insured has previously waived mine subsidence coverage in writing, the insurer shall provide written notice of the availability of or agent need not offer mine subsidence coverage in conjunction with any renewal or supplementary policy in connection with a policy previously issued to such insured by the same insurer, but need not obtain an additional written waiver of mine subsidence coverage unless the insured subsequently makes a written request for mine subsidence coverage.

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 HB5376 EngrossedEnrolled - 11 - LRB104 20354 BAB 33809 b per commercial building, or $15,000 per living unit.

(e) (d) The residential and living unit 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 or living unit caused by mine subsidence if the underlying policy also covers this type of loss, except provided however, that the additional living expenses loss covered under living unit coverage shall be limited to those additional living expenses incurred by an owner who has been temporarily displaced as the direct result of damage losses to improvements and betterments caused by mine subsidence , and reimbursement of additional living expenses and special assessments made against the insured on account of mine subsidence loss and shall be paid within, and not in addition to, the applicable limit for residential or HB5376 EngrossedEnrolled - 12 - LRB104 20354 BAB 33809 b living unit coverage.

The notification shall be in the form of a separate mailing to the insured from the insurer through via the United States Postal Service or other commercial mail delivery service and shall include notification to the insured that mine subsidence premiums paid for coverage on a damaged residence, living HB5376 EngrossedEnrolled - 13 - LRB104 20354 BAB 33809 b unit, 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 the insurer.

Beginning January 1, 1994, all premiums received by the Fund for residential coverage or living unit coverage HB5376 EngrossedEnrolled - 14 - LRB104 20354 BAB 33809 b shall be credited to the Residential Fund, all losses and expenses for residential coverage or living unit coverage shall be charged to the Residential Fund.

The Director shall exempt from the obligations of subsection (a) of Section 805.1 every policy insuring residences, living HB5376 EngrossedEnrolled - 15 - LRB104 20354 BAB 33809 b units or commercial buildings located in any county of 1,000,000 or more inhabitants or any county contiguous to any such county, and, upon request of the Fund, may exempt every policy insuring residences, living units or commercial buildings located in any other specified county of this State, from the provisions of subsection (a) of Section 805.1 of this Article.

To obtain reinsurance from the Fund for mine subsidence coverage offered under this Article, an insurer All insurers shall execute and return to HB5376 EngrossedEnrolled - 16 - LRB104 20354 BAB 33809 b the Fund, prior to receipt by the insurer of any mine subsidence claim for which reinsurance is sought, enter into a reinsurance agreement with the Fund in a form updated from time to time by the Board of Directors and .

rules and HB5376 EngrossedEnrolled - 17 - LRB104 20354 BAB 33809 b procedures covering insurer documentation of losses;

HB5376 EngrossedEnrolled - 18 - LRB104 20354 BAB 33809 b The ceding commission rate for residential mine subsidence coverage and commercial mine subsidence coverage may differ, but the commission rates commission shall be uniform in all reinsurance agreements entered into pursuant to Section 810.1 of this Article and shall be based on reasonable administrative costs to the insurers, including agents' commissions.

(a) The insurer's residential coverage, living unit HB5376 EngrossedEnrolled - 19 - LRB104 20354 BAB 33809 b coverage, and commercial coverage forms shall include a provision stating that the policyholder shall do nothing after a loss to impair the policyholder's rights of recovery against third parties.

HB5376 EngrossedEnrolled - 20 - LRB104 20354 BAB 33809 b (a) to examine the operation of the Fund through free access to all books, records, files, papers and documents relating to its operation and may summon, qualify and examine as witnesses all persons having knowledge of such operation, including officers, agents or employees thereof;

7-30-98.) HB5376 EngrossedEnrolled - 21 - LRB104 20354 BAB 33809 b INDEX Statutes amended in order of appearance 215 ILCS 5/801.1 215 ILCS 5/802.1 215 ILCS 5/803.1 215 ILCS 5/804.1 215 ILCS 5/805.1 215 ILCS 5/806.1 215 ILCS 5/807.1 215 ILCS 5/808.1 215 ILCS 5/809.1 215 ILCS 5/810.1 215 ILCS 5/811.1 215 ILCS 5/813.1 215 ILCS 5/814.1 215 ILCS 5/815.1 215 ILCS 5/817.1