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91_HB1470
LRB9102973JSpc
1 AN ACT to amend the Illinois Insurance Code by changing
2 Section 803.1.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Insurance Code is amended by
6 changing Section 803.1 as follows:
7 (215 ILCS 5/803.1)
8 Sec. 803.1. Establishment of Fund.
9 (a) There is established a fund to be known as the
10 "Illinois Mine Subsidence Insurance Fund". The Fund shall
11 operate pursuant to this Article. The Fund is authorized to
12 transact business, provide services, enter into contracts and
13 sue or be sued in its own name.
14 (b) The Fund shall provide reinsurance for mine
15 subsidence losses to all insurers writing mine subsidence
16 insurance pursuant to this Article, including insurers who
17 insure or reinsure intergovernmental cooperatives for mine
18 subsidence losses.
19 (c) The monies in the Fund shall be derived from
20 premiums for mine subsidence insurance collected on behalf of
21 the Fund pursuant to this Article, from investment income and
22 from receipt of Federal or State funds. No insurer shall
23 have any liability to the Fund or to any creditor of the
24 Fund, except as may be set forth in this Article, in the
25 Articles of Governance which may be adopted by the Fund, in a
26 reinsurance agreement executed pursuant to Section paragraph
27 810.1, in the Plan of Operation established by the Fund, or
28 in the rules and procedures adopted by the Fund as authorized
29 by the reinsurance agreement.
30 (d) The Fund shall establish the rates, rating
31 schedules, deductibles and retentions, minimum premiums, and
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1 classifications for mine subsidence insurance which the Fund
2 shall file with the Director. The Director shall have 30
3 days from the date of receipt to approve or disapprove a rate
4 filing. If no action is taken by the Director within 30
5 days, the rate is deemed to be approved. The Director may,
6 in writing, extend the period for an additional 30 days if
7 the Director determines that additional time is needed.
8 (e) The Fund shall establish its rates, rating
9 schedules, deductibles and retentions, minimum premiums, and
10 classification in such a manner as to satisfy all reasonably
11 foreseeable claims and expenses the Fund is likely to incur.
12 The Fund shall give due consideration to loss experience and
13 relevant trends, premium and other income and reasonable
14 reserves established for contingencies in establishing the
15 mine subsidence rates.
16 (f) The Fund shall compile and publish an annual
17 operating report.
18 (g) The Fund shall develop at least 2 consumer
19 information publications to aid the public in understanding
20 mine subsidence and mine subsidence insurance and shall
21 establish a schedule for the distribution of the publications
22 pursuant to the reinsurance agreement. Topics that shall be
23 addressed shall include but are not limited to:
24 (1) Descriptive information about mine subsidence,
25 and what benefits mine subsidence insurance provides to
26 the property owner.
27 (2) Information that will be useful to a
28 policyholder who has filed a mine subsidence claim, such
29 as information that explains the claim investigation
30 process and claim handling procedures.
31 (h) The Fund shall be empowered to conduct research
32 programs in an effort to improve the administration of the
33 mine subsidence insurance program and help reduce and
34 mitigate mine subsidence losses consistent with the public
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1 interest.
2 (i) The Fund may enter into reinsurance agreements with
3 any intergovernmental cooperative that provides joint
4 self-insurance for mine subsidence losses of its members.
5 These reinsurance agreements shall be substantially similar
6 to reinsurance agreements described in Section 810.1.
7 (Source: P.A. 89-206, eff. 7-21-95; 90-499, eff. 8-19-97;
8 revised 10-31-98.)