Bill Text: IL HB0215 | 2021-2022 | 102nd General Assembly | Introduced
Bill Title: 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.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2021-03-27 - Rule 19(a) / Re-referred to Rules Committee [HB0215 Detail]
Download: Illinois-2021-HB0215-Introduced.html
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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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