Public Act 098-1007
 
SB3504 EnrolledLRB098 18973 RPM 55582 b

    AN ACT concerning regulation.
 
    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 Section 805.1 as follows:
 
    (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, 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. 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.
    (f) No insurer shall be required to offer mine subsidence
coverage in excess of the reinsured limits.
(Source: P.A. 95-92, eff. 1-1-08; 95-334, eff. 1-1-08.)

Effective Date: 1/1/2015