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| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB0215 Introduced 1/22/2021, by Rep. Adam Niemerg SYNOPSIS AS INTRODUCED:
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Amends the Illinois Insurance Code to provide that the Illinois Mine Subsidence Insurance Fund shall provide monthly letters to insurers and insureds regarding the status of claims.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| | HB0215 | | LRB102 04898 BMS 14917 b |
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| 1 | | AN ACT concerning regulation.
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| 2 | | Be it enacted by the People of the State of Illinois,
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| 3 | | represented in the General Assembly:
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| 4 | | Section 5. The Illinois Insurance Code is amended by |
| 5 | | changing Section 803.1 as follows:
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| 6 | | (215 ILCS 5/803.1)
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| 7 | | Sec. 803.1. Establishment of Fund.
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| 8 | | (a) There is established a fund to be known as the |
| 9 | | "Illinois Mine Subsidence
Insurance Fund". The Fund shall |
| 10 | | operate pursuant to this Article. The Fund is
authorized to |
| 11 | | transact business, provide services, enter into contracts and |
| 12 | | sue
or be sued in its own name.
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| 13 | | (b) The Fund shall provide reinsurance for mine subsidence |
| 14 | | losses to all
insurers writing mine subsidence insurance |
| 15 | | pursuant to this Article.
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| 16 | | (c) The monies in the Fund shall be derived from premiums |
| 17 | | for mine
subsidence
insurance collected on behalf of the Fund |
| 18 | | pursuant to this Article, from
investment income and from |
| 19 | | receipt of Federal or State funds. No insurer shall
have any |
| 20 | | liability to the Fund or to any creditor of the Fund, except as |
| 21 | | may be
set forth in this Article, in the Articles of Governance |
| 22 | | which may be adopted
by the Fund, in a reinsurance agreement |
| 23 | | executed pursuant to Section 810.1,
in
the Plan of Operation |
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| 1 | | established by the Fund, or in the rules and procedures
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| 2 | | adopted by the Fund as authorized by the reinsurance |
| 3 | | agreement.
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| 4 | | (d) The Fund shall establish its rates, rating schedules, |
| 5 | | deductibles and
retentions, minimum premiums,
classifications, |
| 6 | | and the maximum amount of reinsurance available per residence, |
| 7 | | commercial building, and living unit
for mine subsidence |
| 8 | | insurance which the Fund shall file
with the Director. The |
| 9 | | Director shall have 30 days from the
date of
receipt to approve |
| 10 | | or disapprove a rate filing. If no action is taken by the
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| 11 | | Director within 30 days, the rate is deemed to be approved. The
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| 12 | | Director
may, in writing, extend the period for an additional |
| 13 | | 30 days if
the
Director
determines that additional time is |
| 14 | | needed.
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| 15 | | (e) The Fund shall establish its rates, rating schedules, |
| 16 | | deductibles and
retentions, minimum premiums,
classifications, |
| 17 | | and the maximum amount of reinsurance available per residence, |
| 18 | | commercial building, and living unit in such a manner as to |
| 19 | | satisfy all reasonably foreseeable
claims and expenses the |
| 20 | | Fund is likely to incur. The Fund shall give due
consideration |
| 21 | | to loss experience and relevant trends, premium and other |
| 22 | | income
and reasonable reserves established for contingencies |
| 23 | | in establishing the mine
subsidence rates.
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| 24 | | (f) The Fund shall compile and publish an annual operating |
| 25 | | report.
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| 26 | | (g) The Fund shall develop at least 2 consumer information |
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| 1 | | publications to
aid the public in understanding mine |
| 2 | | subsidence and mine subsidence insurance
and shall establish a |
| 3 | | schedule for the distribution of the publications
pursuant
to |
| 4 | | the reinsurance agreement. Topics that shall be addressed |
| 5 | | shall include but
are not limited to:
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| 6 | | (1) Descriptive information about mine subsidence, and |
| 7 | | what benefits mine
subsidence insurance provides to the |
| 8 | | property owner.
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| 9 | | (2) Information that will be useful to a policyholder |
| 10 | | who has filed a mine
subsidence claim, such as information |
| 11 | | that explains the claim investigation
process and claim |
| 12 | | handling procedures.
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| 13 | | (h) The Fund shall be empowered to conduct research |
| 14 | | programs in an effort to
improve the administration of the |
| 15 | | mine subsidence insurance program and help
reduce and mitigate |
| 16 | | mine subsidence losses consistent with the public
interest.
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| 17 | | (i) The Fund may enter into reinsurance agreements with |
| 18 | | any
intergovernmental cooperative that provides joint |
| 19 | | self-insurance for mine
subsidence losses of its members. |
| 20 | | These reinsurance agreements shall be
substantially similar to |
| 21 | | reinsurance agreements described in Section 810.1.
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| 22 | | (j) The Fund shall provide monthly letters to insurers and |
| 23 | | insureds regarding the status of claims. |
| 24 | | (Source: P.A. 95-92, eff. 1-1-08; 95-334, eff. 1-1-08.)
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