Effects Of Mine Subsidence On Structures - Mine Subsidence Insurance Program In Illinois

Yarbrough, Ronald E.
Organization: Society for Mining, Metallurgy & Exploration
Pages: 6
Publication Date: Jan 1, 1982
As a result of concern for the citizens of the State of Illinois who owned structures above underground mine workings, the Illinois State Legislature passed House Bill 158 in 1978. This bill amends the Illinois lnsurance Code and creates the Mine Subsidence Reinsurance Fund which is an insurance pool that is to receive a state appropriation of $500,000 as "start-up" money. One hundred thousand dollars has been paid to the fund as of October, 1982. The Fund is to return this appropriation to the State and is to remain self-supporting from premiums. The Fund utilized a pre-existing institution, which also was an insurance pool, the "Fair Plan Facility" and its governing Board, consisting primarily of insurance executives, to administer the program. The Mine Subsidence lnsurance Act went into effect October 1, 1979, and the bill provides that property owners in the State of Illinois may purchase up to $50,000 of mine subsidence insurance which is attached to their fire insurance policy. The deductible is normally 2%, but cannot be less than $250 or more than $500. The annual rate structure for residential structures in 1981 for $50,000 coverage is $10 (frame), and $12 (masonry). The rate structure for commercial buildings is based on the value of the building and the rates for $50,000 maximum coverage is adjusted upward. The insurance was mandated by the State Department of lnsurance and rolled onto the insurance policies of the homeowners in 34 counties which had been recognized as having sufficient exposure to subsidence damage to be covered by the Act. One percent or more of the land surface is undermined in each of the 34 counties. In the other counties undermined in the State of Illinois, insurance is available to the homeowner upon request to the private insurance carrier.
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