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Sen. William R. Haine
Filed: 5/21/2013
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| 1 | | AMENDMENT TO HOUSE BILL 2618
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| 2 | | AMENDMENT NO. ______. Amend House Bill 2618, AS AMENDED, by |
| 3 | | replacing everything after the enacting clause with the |
| 4 | | following:
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| 5 | | "Section 5. The Illinois Insurance Code is amended by |
| 6 | | changing Section 805.1 as follows:
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| 7 | | (215 ILCS 5/805.1)
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| 8 | | Sec. 805.1. Mine Subsidence Coverage.
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| 9 | | (a) Beginning January 1, 1994, every policy issued or |
| 10 | | renewed insuring a
residence on a direct basis shall include, |
| 11 | | at a separately stated premium,
residential coverage unless |
| 12 | | waived in writing by the insured. Beginning
January 1, 1994, |
| 13 | | every policy issued or renewed insuring a commercial building
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| 14 | | on a direct basis shall include at a separately stated premium, |
| 15 | | commercial
coverage unless waived in writing by the insured. |
| 16 | | Beginning January 1, 1994,
every policy issued or renewed |
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| 1 | | insuring a living unit on a direct basis shall
include, at a |
| 2 | | separately stated premium, living unit coverage unless waived |
| 3 | | in
writing by the insured.
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| 4 | | (b) If the insured has previously waived mine subsidence |
| 5 | | coverage in
writing,
the insurer or agent need not offer mine |
| 6 | | subsidence coverage in any renewal or
supplementary policy in |
| 7 | | connection with a policy previously issued to such
insured by |
| 8 | | the same insurer, unless the insured subsequently makes a |
| 9 | | written
request for mine subsidence coverage.
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| 10 | | (c) The premium charged for residential, commercial or |
| 11 | | living unit coverage
shall be the
premium level set by the |
| 12 | | Fund. The loss covered shall be the loss in excess of
the |
| 13 | | deductible or retention established by the Fund and contained |
| 14 | | in a
mine subsidence endorsement to the policy. For all |
| 15 | | policies issued or renewed on or after January 1, 2008, the |
| 16 | | reinsured loss per residence, per commercial building, and per |
| 17 | | living unit shall be the amounts established by the Fund and |
| 18 | | approved by the Director.
For all policies issued or renewed on |
| 19 | | or after January 1, 1996, the amount of
reinsurance available |
| 20 | | from the Fund shall not be less than $200,000 per
residence, |
| 21 | | $200,000 per commercial building, or $15,000 per living unit. |
| 22 | | The
Fund may, from time to time, adjust the amount of |
| 23 | | reinsurance available as long
as the minimum set by this |
| 24 | | Section is met.
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| 25 | | (d) The residential coverage provided pursuant to this |
| 26 | | Article may also
cover
the additional living expenses |
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| 1 | | reasonably and necessarily incurred by the owner
of a residence |
| 2 | | who has been temporarily displaced as the direct result of
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| 3 | | damage to the residence caused by mine subsidence if the |
| 4 | | underlying policy also
covers this type of loss, provided |
| 5 | | however, that the loss covered under living
unit coverage shall |
| 6 | | be limited to losses to improvements
and betterments, and |
| 7 | | reimbursement of additional living expenses and
assessments |
| 8 | | made against the insured on account of mine subsidence loss.
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| 9 | | (e) The total amount of the loss reimbursable to an insurer |
| 10 | | shall be limited
to the amount of
insurance reinsured by the |
| 11 | | Fund in force at the time when the damage first
becomes |
| 12 | | reasonably observable. All damage caused by a single mine |
| 13 | | subsidence
event or several subsidence events which are |
| 14 | | continuous shall constitute one
occurrence. As set forth in |
| 15 | | subsections (a) and (c) of this Section, a policy issued or |
| 16 | | renewed must provide coverage, unless waived in writing by the |
| 17 | | insured, and the insurer must continue to charge the premium |
| 18 | | level set for that coverage by the Fund. If mine subsidence |
| 19 | | coverage is in force when the mine subsidence damage first |
| 20 | | becomes reasonably observable, then the insurer shall notify |
| 21 | | the insured making the mine subsidence claim that continuation |
| 22 | | of that coverage thereafter may not be necessary and is |
| 23 | | optional, but that continued coverage shall terminate only upon |
| 24 | | written waiver by the insured. This notification shall be made |
| 25 | | within 60 days after the insurer receives written confirmation |
| 26 | | from the Fund that the cause of loss is active mine subsidence.
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