SB 3504

Abstract

Amends the Illinois Insurance Code in the provision concerning mine subsidence coverage. Provides that as set forth in the provisions concerning (1) the inclusion of certain coverage at separately stated premiums and (2) premium levels, losses, and reinsurance, a policy issued or renewed must provide coverage, unless waived in writing by the insured, and the insurer must continue to charge the premium level set for that coverage by the Mine Subsidence Insurance Fund. Provides that if mine subsidence coverage is in force when the mine subsidence damage first becomes reasonably observable, then the insurer shall notify the insured making the mine subsidence claim that continuation of that coverage thereafter may not be necessary and is optional, but that continued coverage on the damaged residence or commercial building shall terminate only upon written waiver by the insured. Provides that the notification shall (i) be made within 60 days after the insurer receives written confirmation from the Fund that the cause of loss is active mine subsidence; (ii) be in the form of a separate mailing to the insured from the insurer via the United States Postal Service; (iii) include notification to the insured that mine subsidence premiums paid for coverage on a damaged residence or commercial building subsequent to the established date of loss shall be refunded to the insured within 60 days after the insured provides a signed waiver of mine subsidence coverage to the insurer; and (iv) be accompanied by a waiver of coverage form for the insured to sign and return to the insurer.