summary
Introduced
02/02/2026
02/02/2026
In Committee
02/10/2026
02/10/2026
Crossed Over
Passed
Dead
Introduced Session
Potential new amendment
104th General Assembly
Bill Summary
Amends the Mine Subsidence Insurance Article of the Illinois Insurance Code. Makes changes to defined terms. Provides that the moneys in the Illinois Mine Subsidence Insurance Fund shall be derived primarily from premiums for mine subsidence insurance ceded by insurers to the Fund pursuant to the Article and from investment income. In establishing mine subsidence insurance premium rates, provides that the Fund shall give due consideration to factors reasonably considered by an insurer when setting premium rates and to the fact that the Fund does not receive taxpayer funding or have the ability to issue assessments to the insurance industry to support its long-term financial viability. Changes terms related to the appointment of directors in provisions concerning management of the Fund and establishes 3-year staggered terms for the directors. Provides that all directors shall be independent and owe a duty of care and duty of loyalty to the Fund. In provisions concerning mine subsidence coverage, provides that the loss covered shall be the loss in excess of any applicable deductible or retention in the policy, subject to the limit of insurance for mine subsidence damage stated in the policy. For all policies issued or renewed on or after January 1, 2027, provides that there shall be no deductible or retention applicable to mine subsidence damage. For all policies issued or renewed on or after the effective date of the amendatory Act, provides that the maximum amount of reinsured loss per residence, per commercial building, and per living unit shall be the amounts established by the Fund and approved by the Director. Provides that the residential and living unit coverage provided under the Article may also cover specified costs of debris removal, moving and storage of contents, and repair or replacement of landscaping. Makes changes in provisions concerning division of the Fund; exemptions; rights of insurers to refuse to provide mine subsidence coverage; arbitration; reinsurance agreements; distribution of premiums; reporting requirements; right of recourse and setoffs; subrogation; and powers of the Director of Insurance.
AI Summary
This bill amends the Mine Subsidence Insurance Article of the Illinois Insurance Code to clarify the operations and financial structure of the Illinois Mine Subsidence Insurance Fund, which provides reinsurance for mine subsidence insurance to insurers. Key provisions include that the Fund's money will primarily come from insurance premiums ceded by insurers and investment income, and that when setting premium rates, the Fund must consider factors insurers use and acknowledge it doesn't receive taxpayer funding or have assessment powers. The bill also restructures the Fund's management by establishing 3-year staggered terms for its 11-member Board of Directors, all of whom must be independent and owe duties of care and loyalty to the Fund. For policies issued or renewed on or after January 1, 2027, deductibles or retentions for mine subsidence damage will be eliminated, and for policies issued or renewed after the bill's effective date, the maximum reinsured loss amounts will be set by the Fund and approved by the Director of Insurance. Additionally, residential and living unit coverage may now include costs for debris removal, moving and storage of contents, and landscaping repair if necessitated by covered mine subsidence damage. The bill also makes various technical changes to definitions, reporting requirements, and the powers of the Director of Insurance.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Senate Committee Amendment No. 1 Referred to Assignments (on 02/17/2026)
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