Full Text of HB2618 98th General Assembly
HB2618eng 98TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning regulation.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Insurance Code is amended by | 5 | | changing Section 805.1 as follows:
| 6 | | (215 ILCS 5/805.1)
| 7 | | Sec. 805.1. Mine Subsidence Coverage.
| 8 | | (a) Beginning January 1, 1994, every policy issued or | 9 | | renewed insuring a
residence on a direct basis shall include, | 10 | | at a separately stated premium,
residential coverage unless | 11 | | waived in writing by the insured. Beginning
January 1, 1994, | 12 | | every policy issued or renewed insuring a commercial building
| 13 | | on a direct basis shall include at a separately stated premium, | 14 | | commercial
coverage unless waived in writing by the insured. | 15 | | Beginning January 1, 1994,
every policy issued or renewed | 16 | | insuring a living unit on a direct basis shall
include, at a | 17 | | separately stated premium, living unit coverage unless waived | 18 | | in
writing by the insured.
| 19 | | (b) If the insured has previously waived mine subsidence | 20 | | coverage in
writing,
the insurer or agent need not offer mine | 21 | | subsidence coverage in any renewal or
supplementary policy in | 22 | | connection with a policy previously issued to such
insured by | 23 | | the same insurer, unless the insured subsequently makes a |
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| 1 | | written
request for mine subsidence coverage.
| 2 | | (c) The premium charged for residential, commercial or | 3 | | living unit coverage
shall be the
premium level set by the | 4 | | Fund. The loss covered shall be the loss in excess of
the | 5 | | deductible or retention established by the Fund and contained | 6 | | in a
mine subsidence endorsement to the policy. For all | 7 | | policies issued or renewed on or after January 1, 2008, the | 8 | | reinsured loss per residence, per commercial building, and per | 9 | | living unit shall be the amounts established by the Fund and | 10 | | approved by the Director.
For all policies issued or renewed on | 11 | | or after January 1, 1996, the amount of
reinsurance available | 12 | | from the Fund shall not be less than $200,000 per
residence, | 13 | | $200,000 per commercial building, or $15,000 per living unit. | 14 | | The
Fund may, from time to time, adjust the amount of | 15 | | reinsurance available as long
as the minimum set by this | 16 | | Section is met.
| 17 | | (d) The residential coverage provided pursuant to this | 18 | | Article may also
cover
the additional living expenses | 19 | | reasonably and necessarily incurred by the owner
of a residence | 20 | | who has been temporarily displaced as the direct result of
| 21 | | damage to the residence caused by mine subsidence if the | 22 | | underlying policy also
covers this type of loss, provided | 23 | | however, that the loss covered under living
unit coverage shall | 24 | | be limited to losses to improvements
and betterments, and | 25 | | reimbursement of additional living expenses and
assessments | 26 | | made against the insured on account of mine subsidence loss.
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| 1 | | (e) The total amount of the loss reimbursable to an insurer | 2 | | shall be limited
to the amount of
insurance reinsured by the | 3 | | Fund in force at the time when the damage first
becomes | 4 | | reasonably observable. All damage caused by a single mine | 5 | | subsidence
event or several subsidence events which are | 6 | | continuous shall constitute one
occurrence. As set forth in | 7 | | subsections (a) and (c) of this Section, a policy issued or | 8 | | renewed must provide coverage, unless waived in writing by the | 9 | | insured, and must continue to charge the premium level set for | 10 | | that coverage by the Fund. If mine subsidence coverage is in | 11 | | force when the mine subsidence event first becomes reasonably | 12 | | observable, then the insurer shall notify the insured that | 13 | | continuation of that coverage thereafter may not be necessary | 14 | | and is optional, but that continued coverage shall terminate | 15 | | only upon written waiver by the insured.
| 16 | | (f) No insurer shall be required to offer mine subsidence | 17 | | coverage in
excess of the reinsured limits.
| 18 | | (Source: P.A. 95-92, eff. 1-1-08; 95-334, eff. 1-1-08.)
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