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| Public Act 098-1007 | ||||
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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 | ||||
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 | ||
the insurer. The notification shall be accompanied by a waiver | ||
of coverage form for the insured to sign and return to the | ||
insurer.
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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. 95-92, eff. 1-1-08; 95-334, eff. 1-1-08.)
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