102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB0215

 

Introduced 1/22/2021, by Rep. Adam Niemerg

 

SYNOPSIS AS INTRODUCED:
 
215 ILCS 5/803.1

    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.


LRB102 04898 BMS 14917 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB0215LRB102 04898 BMS 14917 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Insurance Code is amended by
5changing Section 803.1 as follows:
 
6    (215 ILCS 5/803.1)
7    Sec. 803.1. Establishment of Fund.
8    (a) There is established a fund to be known as the
9"Illinois Mine Subsidence Insurance Fund". The Fund shall
10operate pursuant to this Article. The Fund is authorized to
11transact business, provide services, enter into contracts and
12sue or be sued in its own name.
13    (b) The Fund shall provide reinsurance for mine subsidence
14losses to all insurers writing mine subsidence insurance
15pursuant to this Article.
16    (c) The monies in the Fund shall be derived from premiums
17for mine subsidence insurance collected on behalf of the Fund
18pursuant to this Article, from investment income and from
19receipt of Federal or State funds. No insurer shall have any
20liability to the Fund or to any creditor of the Fund, except as
21may be set forth in this Article, in the Articles of Governance
22which may be adopted by the Fund, in a reinsurance agreement
23executed pursuant to Section 810.1, in the Plan of Operation

 

 

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1established by the Fund, or in the rules and procedures
2adopted by the Fund as authorized by the reinsurance
3agreement.
4    (d) The Fund shall establish its rates, rating schedules,
5deductibles and retentions, minimum premiums, classifications,
6and the maximum amount of reinsurance available per residence,
7commercial building, and living unit for mine subsidence
8insurance which the Fund shall file with the Director. The
9Director shall have 30 days from the date of receipt to approve
10or disapprove a rate filing. If no action is taken by the
11Director within 30 days, the rate is deemed to be approved. The
12Director may, in writing, extend the period for an additional
1330 days if the Director determines that additional time is
14needed.
15    (e) The Fund shall establish its rates, rating schedules,
16deductibles and retentions, minimum premiums, classifications,
17and the maximum amount of reinsurance available per residence,
18commercial building, and living unit in such a manner as to
19satisfy all reasonably foreseeable claims and expenses the
20Fund is likely to incur. The Fund shall give due consideration
21to loss experience and relevant trends, premium and other
22income and reasonable reserves established for contingencies
23in establishing the mine subsidence rates.
24    (f) The Fund shall compile and publish an annual operating
25report.
26    (g) The Fund shall develop at least 2 consumer information

 

 

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1publications to aid the public in understanding mine
2subsidence and mine subsidence insurance and shall establish a
3schedule for the distribution of the publications pursuant to
4the reinsurance agreement. Topics that shall be addressed
5shall include but are not limited to:
6        (1) Descriptive information about mine subsidence, and
7    what benefits mine subsidence insurance provides to the
8    property owner.
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.
13    (h) The Fund shall be empowered to conduct research
14programs in an effort to improve the administration of the
15mine subsidence insurance program and help reduce and mitigate
16mine subsidence losses consistent with the public interest.
17    (i) The Fund may enter into reinsurance agreements with
18any intergovernmental cooperative that provides joint
19self-insurance for mine subsidence losses of its members.
20These reinsurance agreements shall be substantially similar to
21reinsurance agreements described in Section 810.1.
22    (j) The Fund shall provide monthly letters to insurers and
23insureds regarding the status of claims.
24(Source: P.A. 95-92, eff. 1-1-08; 95-334, eff. 1-1-08.)