MINE SUBSIDENCE INSURANCE FUND

Illinois General Assembly - Full Text of HB5376

Select Language

×

The Illinois General Assembly offers the Google Translate™ service for visitor convenience. In no way should it be considered accurate as to the translation of any content herein.

Visitors of the Illinois General Assembly website are encouraged to use other translation services available on the internet.

The English language version is always the official and authoritative version of this website.

NOTE: To return to the original English language version, select the "Show Original" button on the Google Translate™ menu bar at the top of the window.

Choose Language

English

Afrikaans

Albanian

Arabic

Armenian

Azerbaijani

Basque

Bengali

Bosnian

Catalan

Croatian

Czech

Danish

Dutch

Esperanto

Estonian

Filipino

Finnish

French

Galician

Georgian

German

Greek

Gujarati

Haitian Creole

Hausa

Hawaiian

Hebrew

Hindi

Hungarian

Icelandic

Indonesian

Interlingua

Interlingue

Inuktitut

Irish

Italian

Japanese

Javanese

Kannada

Khmer

Korean

Latin

Latvian

Lithuanian

Luxembourgish

Macedonian

Malagasy

Malayalam

Maltese

Maori

Marathi

Myanmar

Nepali

Norwegian

Odia

Pashto

Punjabi

Romanian

Russian

Samoan

Sango

Sanskrit

Sardinian

Sindhi

Sinhala

Slovak

Slovenian

Somali

Southern Sotho

Spanish

Sundanese

Swahili

Swedish

Tamil

Telugu

Thai

Tigrinya

Tonga

Turkish

Ukrainian

Urdu

Vietnamese

Welsh

Xhosa

Yiddish

Yoruba

Zulu

Powered by
Translate

Close

Illinois General Assembly

Top Navigation Bar

Translate

Learn

Select General Assembly

Search the 104th General Assembly

Enter search terms for legislation, members, committees, or schedules.

ILGA.GOV

LEGISLATION & LAWS

Bills & Resolutions

Public Acts

Illinois Compiled Statutes

Illinois Constitution

Search Legislation

Glossary

Guide

Reports & Inquiry

Legislative Reports

Special Reports

FTP Site

Legislator Lookup

Capitol Complex Phone Numbers

Rules & Regulations

Illinois Register

Administrative Rules

Senate

Members

Schedules

Committees

Request for Remote Testimony

Journals

Transcripts

Rules

Audio/Video

FOIA Information

Senate Employment Opportunities

Media Guidelines

House

Members

Schedules

Committees

Submit testimony for House Committees

Journals

Transcripts

Rules

Audio/Video

FOIA Information

House Employment Opportunities

Log In

Mobile Top Bar

Search the 104th General Assembly

Enter keywords to search the Illinois General Assembly website.

Full Text of HB5376

Home

Legislation

Full Text

HB5376 - 104th General Assembly

Bill Status

Full Text

Votes

Witness Slips

Select Menu

Bill Status

Full Text

Votes

Witness Slips

Printer Friendly Version

Introduced

Engrossed

Enrolled

House Amendment 001

Public Act

Printer Friendly Version

Introduced

Engrossed

Enrolled

House Amendment 001

Public Act

Open PDF

HB5376 Enrolled
LRB104 20354 BAB 33809 b
1

AN ACT concerning regulation.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 5.
The Illinois Insurance Code is amended by
5
changing Sections 801.1, 802.1, 803.1, 804.1, 805.1, 806.1,
6
807.1, 808.1, 810.1, 811.1, 813.1, 815.1, and 817.1 as
7
follows:

8

(215 ILCS 5/801.1)
9

Sec. 801.1.
Purpose.
The purpose of this Article is to
10
require insurers to make mine subsidence insurance coverage
11
available for residences, living units and commercial
12
buildings located in Illinois; to establish the Illinois Mine
13
Subsidence Insurance Fund; to divide the Fund into separate
14
residential and commercial sub-funds; and to make the Fund
a
15
taxable, private

the
reinsurer for the mine subsidence
16
insurance made available under this Article.
17
(Source: P.A. 88-379.)

18

(215 ILCS 5/802.1)
19

Sec. 802.1.
Definitions.
As used in this Article:
20

(a) "Commercial
building

Building
" means any building
that
21
is classified by the insurer as a commercial building and is

,
22
other than a residence,
permanently affixed to realty located

HB5376 Enrolled
- 2 -
LRB104 20354 BAB 33809 b
1
in Illinois, including basements, footings, foundations,
2
septic systems and underground pipes directly servicing the
3
building
. "Commercial building" does not include any other
4
improvements to real property, including, without limitation
,
5
but does not include
sidewalks, driveways, parking lots,
6
living units, land,
landscaping, lawns,
trees, plants, crops
,

7
or agricultural field drainage tile.
8

(b) "Commercial
coverage

Coverage
" means mine subsidence
9
insurance for a commercial building.
10

(b-5) "Director" means the then-appointed, then-acting, or
11
then-interim Director of Insurance.

12

(c) "Insurer" or
"insurers"

"Insurers"
means
an
insurance
13
company or
companies
, farm mutuals,
and reciprocals licensed
14
and authorized to write Class 3 policies of insurance, as
15
defined in this Code, within Illinois.
16

(d) "Living
unit

Unit
"
means

shall mean
that physical
17
portion designated for separate ownership or
exclusive

18
occupancy for residential purposes, of a building or group of
19
buildings, permanently affixed to realty located in Illinois,
20
having elements which are owned or used in common, including a
21
condominium unit, a cooperative unit or any other similar
22
unit.
23

(e) "Living
unit coverage

Unit Coverage
" means mine
24
subsidence insurance for a living unit
covering the losses
25
described in Section 805.1(d)
.
26

(f) "Mine
subsidence

Subsidence
" means lateral or vertical

HB5376 Enrolled
- 3 -
LRB104 20354 BAB 33809 b
1
ground movement caused by a failure initiated at the mine
2
level, of man-made underground
mineral
mines, including, but
3
not limited to coal mines, clay mines, limestone mines, and
4
fluorspar mines that directly damages residences
, living
5
units,
or commercial buildings. "Mine
subsidence

Subsidence
"
6
does not include lateral or vertical ground movement caused by
7
anything other than a failure initiated at the mine level of
8
man-made underground mineral mines, including, but not limited
9
to, surface mining,
earthquake, landslide, volcanic eruption,
10
soil conditions, soil erosion, soil freezing and thawing,
11
improperly compacted soil, construction defects, roots of
12
trees and shrubs or
collapse of
storm and sewer drains and
13
rapid transit tunnels.
14

(g) "Mine Subsidence Insurance Fund" or "Fund" means the
15
private
fund established by this Article.
16

(h) "Policy" or "policies" means any contract or contracts
17
of insurance providing the coverage of the Standard Fire
18
Policy and Extended Coverage Endorsement
, or substantial
19
equivalent,
on any residence, living unit
,
or commercial
20
building. It does not include those insurance contracts that
21
are referred to as marine or inland marine policies
or that
22
reinsure the liability of another, whether or not those
23
insurance contracts are designated as reinsurance policies
.
24

(i) "Premium" or "premiums" means the gross amount charged
25
to policyholders for the mine subsidence insurance made
26
available under this Article.

HB5376 Enrolled
- 4 -
LRB104 20354 BAB 33809 b
1

(j) "Rates" or "rate schedules" means the rates by which
2
premiums shall be computed for the mine subsidence insurance
3
made available under this Article.
4

(k) "Residence" means a building
that is classified by the
5
insurer as a residence and

used principally for residential
6
purposes
up to and including a
4-family

four family
dwelling,
7
permanently affixed to realty located in Illinois, including
8
appurtenant structures, driveways, sidewalks, basements,
9
footings, foundations, septic systems and underground pipes
10
directly servicing the dwelling or building
. "Residence" does
11
not include any other improvements to real property,
12
including, without limitation
,
but does not include
living
13
units, land,
landscaping, lawns,
trees, plants, crops or
14
agricultural field drainage tile.
15

(l) "Residential
coverage

Coverage
" means mine subsidence
16
insurance for a residence.
17

(m) "Intergovernmental cooperative" means an
18
intergovernmental cooperative organized pursuant to Article
19
VII, Section 10 of the Illinois Constitution and Section 6 of
20
the Intergovernmental Cooperation Act.
21
(Source: P.A. 90-499, eff. 8-19-97.)

22

(215 ILCS 5/803.1)
23

Sec. 803.1.
Establishment of Fund.
24

(a) There is established a
private
fund to be known as the
25
"
Illinois Mine Subsidence Insurance Fund
"
. The Fund shall

HB5376 Enrolled
- 5 -
LRB104 20354 BAB 33809 b
1
operate pursuant to this Article. The Fund is authorized to
2
transact business, provide services, enter into contracts
,
and
3
sue or be sued in its own name.
4

(b) The Fund shall provide reinsurance for mine subsidence
5
losses to all insurers writing mine subsidence insurance
6
pursuant to this Article
who have properly executed a
7
reinsurance agreement with the Fund in a form filed with and
8
approved by the Director
.
9

(c) The
moneys

monies
in the Fund shall be derived
10
primarily
from premiums for mine subsidence insurance
ceded by
11
insurers to the Fund

collected on behalf of the Fund
pursuant
12
to this Article
and

,
from investment income
and from receipt
13
of Federal or State funds
. No insurer shall have any liability
14
to the Fund or to any creditor of the Fund, except as may be
15
set forth in this Article, in the Articles of Governance which
16
may be adopted by the Fund, in a reinsurance agreement
17
executed pursuant to Section 810.1, in the Plan of Operation
18
established by the Fund, or in the rules and procedures
19
adopted by the Fund as authorized by the reinsurance
20
agreement.
21

(d) The Fund shall establish its rates, rating schedules,
22
deductibles and retentions,
minimum premiums, classifications,
23
and the maximum amount of reinsurance available per residence,
24
commercial building, and living unit for mine subsidence
25
insurance which the Fund shall file with the Director. The
26
Director shall have 30 days from the date of receipt to approve

HB5376 Enrolled
- 6 -
LRB104 20354 BAB 33809 b
1
or disapprove a rate filing. If no action is taken by the
2
Director within 30 days
after filing, the filing

, the rate
is
3
deemed to be approved. The Director may, in writing, extend
4
the period for an additional 30 days if the Director
5
determines that additional time is needed.
6

(e) The Fund shall establish its rates, rating schedules,
7
deductibles and retentions,
minimum premiums, classifications,
8
and the maximum amount of reinsurance available per residence,
9
commercial building, and living unit in such a manner as to
10
satisfy all reasonably foreseeable claims and expenses the
11
Fund is likely to incur.
In establishing the mine subsidence
12
insurance premium rates, the

The
Fund shall give due
13
consideration to
factors reasonably considered by an insurer
14
when setting premium rates, including
loss experience and
15
relevant trends, premium and other income and reasonable
16
reserves established for contingencies
in establishing the
17
mine subsidence rates
.
18

(f) The Fund shall compile and publish an annual operating
19
report.
20

(g) The Fund shall
maintain or make available

develop
at
21
least 2 consumer information publications to aid the public in
22
understanding mine subsidence and mine subsidence insurance
23
and shall establish a schedule for the distribution of the
24
publications pursuant to the reinsurance agreement
. Topics
25
that shall be addressed shall include but are not limited to:

26

(1) Descriptive information about mine subsidence, and

HB5376 Enrolled
- 7 -
LRB104 20354 BAB 33809 b
1

what benefits mine subsidence insurance provides to the
2

property owner.

3

(2) Information that will be useful to a policyholder
4

who has filed a mine subsidence claim, such as information
5

that explains the claim investigation process and claim
6

handling procedures.
7

(h) The Fund shall be empowered to
sponsor, fund, or

8
conduct research programs in an effort to improve the
9
administration of the mine subsidence insurance program and
10
help reduce and mitigate mine subsidence losses consistent
11
with the public interest.
12

(i) The Fund may enter into reinsurance agreements with
13
any intergovernmental cooperative that provides joint
14
self-insurance for mine subsidence losses of its members.
15
These reinsurance agreements shall be substantially similar to
16
reinsurance agreements described in Section 810.1.
17
(Source: P.A. 95-92, eff. 1-1-08; 95-334, eff. 1-1-08.)

18

(215 ILCS 5/804.1)
19

Sec. 804.1.
Management of the Fund.
20

(a) The Fund shall be
governed

managed
by an
11-member

11
21
member
Board of Directors, 6 of whom shall be
designated as

22
insurance
industry-elected

industry
directors, 4 of whom shall
23
be
designated as public-appointed

public
directors, and one of
24
whom shall be
designated as
an
Illinois-licensed

Illinois
25
licensed
insurance producer
public-appointed director
. The

HB5376 Enrolled
- 8 -
LRB104 20354 BAB 33809 b
1
industry directors shall be elected
to 3-year staggered terms

2
annually
in the manner provided in Articles of Governance
3
adopted by the Fund. The public directors shall be appointed
4
to 3-year staggered terms
by the Director, and shall not be
5
employees of or otherwise affiliated with the insurance
6
industry. The
Illinois-licensed

Illinois licensed
insurance
7
producer shall be appointed
to a 3-year term
by the Director.
8

(b)
Each member of the Board of Directors on the effective
9
date of this amendatory Act of the 104th General Assembly
10
shall continue to be a member of the Board of Directors until
11
the conclusion of that Director's existing 3-year term or, in
12
the case of an appointed director, until the Director makes an
13
official appointment, whichever is later.

The members of the
14
Governing Committee of the Illinois Mine Subsidence Insurance
15
Fund established by Article XXXVIII who are members of the
16
Governing Committee as of December 31, 1993 shall become the
17
members of the Board of Directors of the Fund established by
18
this Article on the effective date of this Act, and shall
19
continue to hold office until the next annual meeting of the
20
Fund.
21

(c) No later than the date of the next annual meeting of
22
the Fund following the effective date of this Act, the
23
Director shall appoint 4 public directors, one for a one-year
24
term, one for a two-year term and 2 for three-year terms. No
25
later than the date of the next annual meeting of the Fund
26
following the effective date of this amendatory Act of 1994,

HB5376 Enrolled
- 9 -
LRB104 20354 BAB 33809 b
1
the Director shall appoint the Illinois licensed insurance
2
producer for a 2-year term. Thereafter, all public directors
3
and the licensed insurance producer shall be appointed for 3
4
year terms.
5

(c) The

(d) As soon as practical after the effective date
6
of this Act, the
Fund shall adopt Articles of Governance,
7
which shall be submitted to the Director for
his
review and
8
approval.
The Board of Directors of the Fund may amend the
9
Articles of Governance, subject to review and approval by the
10
Director.

11
(Source: P.A. 88-379; 88-667, eff. 9-16-94; 89-206, eff.
12
7-21-95.)

13

(215 ILCS 5/805.1)
14

Sec. 805.1.
Mine Subsidence Coverage.
15

(a) Beginning January 1, 1994, every policy issued or
16
renewed insuring a residence on a direct basis shall include,
17
at a separately stated premium, residential coverage unless
18
waived in writing by the insured. Beginning January 1, 1994,
19
every policy issued or renewed insuring a commercial building
20
on a direct basis shall include at a separately stated
21
premium, commercial coverage unless waived in writing by the
22
insured. Beginning January 1, 1994, every policy issued or
23
renewed insuring a living unit on a direct basis shall
24
include, at a separately stated premium, living unit coverage
25
unless waived in writing by the insured.

HB5376 Enrolled
- 10 -
LRB104 20354 BAB 33809 b
1

(b) If the insured has previously waived mine subsidence
2
coverage in writing, the insurer
shall provide written notice
3
of the availability of

or agent need not offer
mine subsidence
4
coverage in
conjunction with
any renewal or supplementary
5
policy in connection with a policy previously issued to such
6
insured by the same insurer,
but need not obtain an additional
7
written waiver of mine subsidence coverage

unless the insured
8
subsequently makes a written request for mine subsidence
9
coverage
.
10

(c) The premium charged for residential, commercial or
11
living unit coverage shall be the premium level set by the
12
Fund. The loss covered shall be the loss in excess of
any
13
applicable

the
deductible or retention
in

established by the
14
Fund and contained in a mine subsidence endorsement to
the
15
policy
, subject to the limit of insurance for mine subsidence
16
damage stated in the policy; however, for all policies issued
17
or renewed on or after January 1, 2027, there shall be no
18
deductible or retention applicable to mine subsidence damage
.
19
For all policies issued or renewed on or after
the effective
20
date of this amendatory Act of the 104th General Assembly

21
January 1, 2008
, the
maximum amount of
reinsured loss per
22
residence, per commercial building, and per living unit shall
23
be the amounts established by the Fund and approved by the
24
Director. For all policies issued or renewed on or after
25
January 1, 1996, the amount of reinsurance available from the
26
Fund shall not be less than $200,000 per residence, $200,000

HB5376 Enrolled
- 11 -
LRB104 20354 BAB 33809 b
1
per commercial building, or $15,000 per living unit. The Fund
2
may, from time to time, adjust the amount of reinsurance
3
available as long as the minimum set by this Section is met.
4

(d) The residential and living unit coverage provided
5
pursuant to this Article may also cover, as part of the cost of
6
repairs of covered mine subsidence damage to a residence or
7
living unit, the costs of debris removal, moving and storage
8
of contents, and repair or replacement of landscaping, but
9
only if made necessary by the repairs of covered mine
10
subsidence damage to a residence or living unit and only when
11
and to the extent such costs are actually incurred.

12

(e)

(d)
The residential
and living unit
coverage provided
13
pursuant to this Article may also cover the additional living
14
expenses reasonably and necessarily incurred by the owner of a
15
residence who has been temporarily displaced as the direct
16
result of damage to the residence
or living unit
caused by mine
17
subsidence if the underlying policy also covers this type of
18
loss,
except

provided however,
that the
additional living
19
expenses

loss
covered under living unit coverage shall be
20
limited to
those additional living expenses incurred by an
21
owner who has been temporarily displaced as the direct result
22
of damage

losses
to improvements and betterments
caused by
23
mine subsidence

, and reimbursement of additional living
24
expenses
and
special
assessments made against the insured on
25
account of mine subsidence loss
and shall be paid within, and
26
not in addition to, the applicable limit for residential or

HB5376 Enrolled
- 12 -
LRB104 20354 BAB 33809 b
1
living unit coverage
.
2

(f)

(e)
The total amount of the loss reimbursable to an
3
insurer shall be limited to the amount of insurance reinsured
4
by the Fund in force at the time when the damage first becomes
5
reasonably observable. All damage caused by a single mine
6
subsidence event or several subsidence events which are
7
continuous shall constitute one occurrence. As set forth in
8
subsections (a) and (c) of this Section, a policy issued or
9
renewed must provide coverage, unless waived in writing by the
10
insured, and the insurer must continue to charge the premium
11
level set for that coverage by the Fund. If mine subsidence
12
coverage is in force when the mine subsidence damage first
13
becomes reasonably observable,
and the mine subsidence
14
occurrence is still ongoing,
then the insurer shall notify the
15
insured making the mine subsidence claim that continuation of
16
that coverage thereafter may not be necessary and is optional,
17
but that continued coverage on the damaged residence
, living
18
unit,
or commercial building shall terminate only upon written
19
waiver by the insured. The notification shall be made within
20
60 days after the insurer receives written confirmation from
21
the Fund that the cause of loss is active mine subsidence. The
22
notification shall be in the form of a separate mailing to the
23
insured from the insurer
through

via
the United States Postal
24
Service
or other commercial mail delivery service
and shall
25
include notification to the insured that mine subsidence
26
premiums paid for coverage on a damaged residence
, living

HB5376 Enrolled
- 13 -
LRB104 20354 BAB 33809 b
1
unit,
or commercial building subsequent to the established
2
date of loss shall be refunded to the insured within 60 days
3
after the insured provides a signed waiver of mine subsidence
4
coverage to the insurer. The notification shall be accompanied
5
by a waiver of coverage form for the insured to sign and return
6
to the insurer.
7

(g)

(f)
No insurer shall be required to offer mine
8
subsidence coverage in excess of the reinsured limits
as
9
established from time to time by the Fund and approved by the
10
Director
.
11
(Source: P.A. 98-1007, eff. 1-1-15
.)

12

(215 ILCS 5/806.1)
13

Sec. 806.1.
Division of Fund Into Separate Residential and
14
Commercial Sub-funds.
15

(a) Effective January 1, 1994, the Fund shall establish 2
16
separate sub-funds, a Residential Fund to provide reinsurance
17
for mine subsidence losses arising from residential and living
18
unit coverage and a Commercial Fund to provide reinsurance for
19
mine subsidence losses arising from commercial coverage. The
20
assets and liabilities of the Fund shall be allocated to the
2

21
two
sub-funds in such manner as determined by the Board of
22
Directors, with the approval of the Director. The
2

two

23
sub-funds shall continue to be
governed

managed
by the Board
24
of Directors. Beginning January 1, 1994, all premiums received
25
by the Fund for residential coverage or living unit coverage

HB5376 Enrolled
- 14 -
LRB104 20354 BAB 33809 b
1
shall be credited to the Residential Fund, all losses and
2
expenses for residential coverage or living unit coverage
3
shall be charged to the Residential Fund. All premiums
4
received by the Fund for commercial coverage shall be credited
5
to the Commercial Fund, and all losses and expenses for
6
commercial coverage shall be charged to the Commercial Fund.
7
The Fund's overhead expenses shall be allocated between the
8
Residential Fund and the Commercial Fund on the basis of
9
annual written premium credited to each sub-fund. The assets
10
and liabilities of the Residential and Commercial Funds shall
11
be accounted for separately. The assets of the Residential
12
Fund shall not be used to reimburse insurers for losses for
13
Commercial Coverage and the assets of the Commercial Fund
14
shall not be used to reimburse insurers for losses for
15
residential coverage or living unit coverage.
16

(b) No insurer shall be required to pay any claim for any
17
loss reinsured under this Article except to the extent that
18
the amount available in the Residential Fund or the Commercial
19
Fund, as the case may be, is sufficient to reimburse the
20
insurer for such payment.
21
(Source: P.A. 88-379; 89-206, eff. 7-21-95.)

22

(215 ILCS 5/807.1)
23

Sec. 807.1.
Exemption of Certain Counties by the Director.
24
The Director shall exempt
from the obligations of subsection
25
(a) of Section 805.1
every policy insuring residences, living

HB5376 Enrolled
- 15 -
LRB104 20354 BAB 33809 b
1
units or commercial buildings located in any county of
2
1,000,000 or more inhabitants or any county contiguous to any
3
such county, and, upon request of the Fund, may exempt every
4
policy insuring residences, living units or commercial
5
buildings located in any other specified county of this State,
6
from the provisions of
subsection (a) of
Section 805.1 of this
7
Article.
However, in any county exempted by this Section from
8
the obligations of subsection (a) of Section 805.1, an insurer
9
shall make available mine subsidence coverage upon request by
10
a policyholder. The Fund shall maintain and make available to
11
insurers a list of the exempt and non-exempt counties as
12
described in this Section.

13
(Source: P.A. 91-357, eff. 7-29-99.)

14

(215 ILCS 5/808.1)
15

Sec. 808.1.
Right of Insurers to Refuse to Provide Mine
16
Subsidence Coverage. An insurer may refuse to provide mine
17
subsidence coverage on a residence
, living unit,
or commercial
18
building evidencing unrepaired mine subsidence damage until
19
such damage has been repaired.
20
(Source: P.A. 88-379.)

21

(215 ILCS 5/810.1)
22

Sec. 810.1.
Reinsurance Agreements.
To obtain reinsurance
23
from the Fund for mine subsidence coverage offered under this
24
Article, an insurer

All insurers
shall
execute and return to

HB5376 Enrolled
- 16 -
LRB104 20354 BAB 33809 b
1
the Fund, prior to receipt by the insurer of any mine
2
subsidence claim for which reinsurance is sought,

enter into
a
3
reinsurance agreement with the Fund
in a form updated from
4
time to time by the Board of Directors and

. The reinsurance
5
agreement shall be
filed with and approved by the Director.
6
The agreement
, which may include a specific effective date and
7
expiration date,
shall provide that each insurer shall cede
8
100% of any
mine
subsidence insurance written up to the limits
9
then established and in effect pursuant to subsection (c) of

10
contained in
Section 805.1
(c)
to the Fund and, in
11
consideration of the ceding commission retained by the
12
insurer, agrees to distribute informational publications
13
provided by the Fund
on a schedule set by the Fund
, undertake
14
adjustment of losses, payment of taxes, and all other expenses
15
of the insurer necessary for sale of policies and
16
administration of the mine subsidence insurance coverage. The
17
Fund shall agree to reimburse the insurer for all amounts
18
reasonably and properly paid
to
policyholders from claims
19
resulting from mine subsidence and for expenses specified in
20
the reinsurance agreement.
In addition, the reinsurance
21
agreement may contain, and may authorize the Fund to establish
22
and promulgate deductibles.
The reinsurance agreement may also
23
contain reasonable
provisions, rules, and procedures related
24
to underwriting standards; language that insurers must include
25
or not include in mine subsidence coverage forms used by
26
insurers; remitting of premiums to the Fund;

rules and

HB5376 Enrolled
- 17 -
LRB104 20354 BAB 33809 b
1
procedures

covering
insurer documentation of losses; insurer
2
reporting of
premiums,
claims,
loss payments, and

reports of

3
litigation
, premiums and loss payments
; loss payment review by
4
the Fund;
determinations of whether claimed damage was caused
5
by mine subsidence, when mine subsidence damage was first
6
reasonably observable, and whether movement was continuous;
7
handling and adjustment of claims for damage caused by mine
8
subsidence; control and direction of litigation or arbitration
9
involving whether claimed damage was caused by mine
10
subsidence, when mine subsidence damage was first reasonably
11
observable, or whether movement was continuous or that may
12
affect the interests of the Fund; subrogation;

remitting of
13
premiums to the Fund; underwriting; and cause and origin
14
investigations;
and procedures for resolving disputes between
15
the
insurers and the Fund.
16
(Source: P.A. 90-655, eff. 7-30-98; 91-357, eff. 7-29-99.)

17

(215 ILCS 5/811.1)
18

Sec. 811.1.
Distribution of Premiums.
The Fund is
19
authorized to establish
, by way of the reinsurance agreement,
20
Plan of Operation, or operating rules and procedures,
the
21
proportion of total mine subsidence insurance premiums
22
collected by each insurer which shall be retained by the
23
insurer as a ceding commission, subject to review of the
24
Director. The remainder of such premiums shall be remitted by
25
the insurer to the Fund at times to be determined by the Fund.

HB5376 Enrolled
- 18 -
LRB104 20354 BAB 33809 b
1
The ceding
commission rate for residential mine subsidence
2
coverage and commercial mine subsidence coverage may differ,
3
but the commission rates

commission
shall be uniform in all
4
reinsurance agreements entered into pursuant to Section 810.1
5
of this Article and shall be based on reasonable
6
administrative costs to the insurers, including agents'
7
commissions.
8
(Source: P.A. 88-379.)

9

(215 ILCS 5/813.1)
10

Sec. 813.1.
Reporting Requirements.
Every insurer must
11
report, at times designated by the Fund, such information as
12
is reasonably required by the Fund to conduct its affairs,
13
including, without limitation, information regarding losses
14
incurred and paid, premiums written and collected, and
15
exposures insured. Insurers must cooperate with the Fund's
16
periodic examination and audit of the insurer's mine
17
subsidence insurance books and records and with reasonable
18
data requests necessary to evaluate and price the exposure

19
establish claim reserves, and reimburse insurers for losses
20
paid to insureds
.
21
(Source: P.A. 88-379.)

22

(215 ILCS 5/815.1)
23

Sec. 815.1.
Subrogation.
24

(a)
The insurer's residential coverage, living unit

HB5376 Enrolled
- 19 -
LRB104 20354 BAB 33809 b
1
coverage, and commercial coverage forms shall include a
2
provision stating that the policyholder shall do nothing after
3
a loss to impair the policyholder's rights of recovery against
4
third parties. An insurer issuing residential coverage, living
5
unit coverage, or commercial coverage

All insurers issuing
6
mine subsidence policies
shall retain the right of subrogation
7
and do nothing after the loss to impair that right
.
8

(b) The Fund, on its own behalf, may exercise the right of
9
subrogation
to the extent permitted by law
.
10

(c)
Upon request by the Fund, an insurer with a reinsured
11
claim shall assign to the Fund any rights of subrogation it may
12
have, whether or not the rights of subrogation transfer to the
13
Fund by operation of law

Every insurer shall include in its
14
reports an itemized list of all losses in subrogation and
15
shall remit to the Fund all monies, less expenses, recovered
16
as the result of subrogation actions
.
17
(Source: P.A. 88-379.)

18

(215 ILCS 5/817.1)
19

Sec. 817.1.
Powers of Director.
In addition to any powers
20
conferred upon
the Director

him
by this or any other law, the
21
Director shall have the authority to
regulate

supervise
the
22
operations of the Fund
as set forth in this Article
and shall
23
review the Fund's rates once every
3

three
years. In addition
,

24
the Director or any person designated by
the Director

him
has
25
the power:

HB5376 Enrolled
- 20 -
LRB104 20354 BAB 33809 b
1

(a) to examine the operation of the Fund through free
2

access to all books, records, files, papers and documents
3

relating to its operation and may summon, qualify and
4

examine as witnesses all persons having knowledge of such
5

operation, including officers, agents or employees
6

thereof;

7

(b) to do all things necessary to enable the State of
8

Illinois and any insurer participating in any program
9

approved by the Director to fully participate in any
10

federal program which may be enacted for purposes similar
11

to the purposes of this Article;

12

(c) to require such reports as the Director may deem
13

necessary.
14
(Source: P.A. 90-655, eff. 7-30-98.)

HB5376 Enrolled
- 21 -
LRB104 20354 BAB 33809 b
1

INDEX

2

Statutes amended in order of appearance

3

215 ILCS 5/801.1
4

215 ILCS 5/802.1
5

215 ILCS 5/803.1
6

215 ILCS 5/804.1
7

215 ILCS 5/805.1
8

215 ILCS 5/806.1
9

215 ILCS 5/807.1
10

215 ILCS 5/808.1
11

215 ILCS 5/809.1
12

215 ILCS 5/810.1
13

215 ILCS 5/811.1
14

215 ILCS 5/813.1
15

215 ILCS 5/814.1
16

215 ILCS 5/815.1
17

215 ILCS 5/817.1

Footer

Disclaimer

This site is maintained for the Illinois General Assembly by the
Legislative Information System, 705 Stratton Building, Springfield, Illinois 62706.

Contact ILGA Webmaster

ILGA.gov uses cookies to ensure you get the best experience on our website. By continuing to browse ILGA.gov you consent to our use of cookies.
Read About Cookies

ILGA.GOV

2026 ILGA.gov | All Rights Reserved |
ADA

|
Disclaimers
|
Learn

This site is maintained for the Illinois General Assembly by the
Legislative Information System, 705 Stratton Building, Springfield, Illinois 62706.
Contact ILGA Webmaster

ILGA.gov uses cookies to ensure you get the best experience on our website. By continuing to browse ILGA.gov you consent to our use of cookies.
Read About Cookies

ILGA.GOV

2026 ILGA.gov | All Rights Reserved |
ADA

|
Disclaimers
|
Learn