96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB4114


 
Introduced 2/27/2009, by Rep. David R. Leitch
 
SYNOPSIS AS INTRODUCED:
 		








  




55 ILCS 5/3-5048 new





215 ILCS 5/805.1









    Amends the Counties Code and the Illinois Insurance Code.  Provides that when an insurer pays a claim to an insured for mine subsidence, the insurer must file notice of that claim with the recorder of the county where the insured's property is located.  Provides that every recorder must accept notice of a payment of a claim for mine subsidence insurance and file  this information in a way that allows it  to be accessed in a title search of the property.
















LRB096 11656 RPM 22235 b

















FISCAL NOTE ACT MAY APPLY


STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
















 


 


A BILL FOR









 











HB4114

LRB096 11656 RPM 22235 b






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    AN ACT concerning insurance.

 
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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 Counties Code is amended  by adding Section 
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3-5048 as follows:
 
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    (55 ILCS 5/3-5048  new)
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    Sec. 3-5048. Mine subsidence claims; title search. Every 
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recorder must accept notice of a payment of a claim for mine 
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subsidence insurance and file  this information in a way that 
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allows it  to be accessed in a title search of the property.
 
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    Section 10. The Illinois Insurance Code is amended  by 
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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 
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renewed insuring a
residence on a direct basis shall include, 
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at a separately stated premium,
residential coverage unless 
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waived in writing by the insured.  Beginning
January 1, 1994, 
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every policy issued or renewed insuring a commercial building

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on a direct basis shall include at a separately stated premium, 
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commercial
coverage unless waived in writing by the insured.  
 


 






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Beginning January 1, 1994,
every policy issued or renewed 
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insuring a living unit on a direct basis shall
include, at a 
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separately stated premium, living unit coverage unless waived 
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in
writing by the insured.

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    (b) If the insured has previously waived mine subsidence 
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coverage in
writing,
the insurer or agent need not offer mine 
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subsidence coverage in any renewal or
supplementary policy in 
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connection with a policy previously issued to such
insured by 
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the same insurer, unless the insured subsequently makes a 
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written
request for mine subsidence coverage.

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    (c) The premium charged for residential, commercial or 
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living unit coverage
shall be the
premium level set by the 
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Fund.  The loss covered shall be the loss in excess of
the 
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deductible or retention established by the Fund and contained 
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in a
mine subsidence endorsement to the policy.  For all 
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policies issued or renewed on or after January 1, 2008, the 
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reinsured loss per residence, per commercial building, and per 
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living unit shall be the amounts established by the Fund and 
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approved by the Director.

For all policies issued or renewed on 
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or after January 1, 1996, the amount of
reinsurance available 
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from the Fund shall not be less than $200,000 per
residence, 
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$200,000 per commercial building, or $15,000 per living unit.  
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The
Fund may, from time to time, adjust the amount of 
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reinsurance available as long
as the minimum set by this 
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Section is met.

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    (d) The residential coverage provided pursuant to this 
 


 






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Article may also
cover
the additional living expenses 
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reasonably and necessarily incurred by the owner
of a residence 
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who has been temporarily displaced as the direct result of

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damage to the residence caused by mine subsidence if the 
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underlying policy also
covers this type of loss, provided 
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however, that the loss covered under living
unit coverage shall 
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be limited to losses to improvements
and betterments, and 
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reimbursement of additional living expenses and
assessments 
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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 
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shall be limited
to the amount of
insurance reinsured by the 
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Fund in force at the time when the damage first
becomes 
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reasonably observable.  All damage caused by a single mine 
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subsidence
event or several subsidence events which are 
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continuous shall constitute one
occurrence.

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    (f) No insurer shall be required to offer mine subsidence 
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coverage in
excess of the reinsured limits.

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    (g) If an insurer pays a claim to an insured for mine 
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subsidence, the insurer must file notice of that claim with the 
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recorder of the county where the insured's property is located. 
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(Source: P.A. 95-92, eff. 1-1-08; 95-334, eff. 1-1-08.)