Illinois Mine Subsidence Insurance Fund

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Description

The Illinois Mine Subsidence Insurance Fund provides reinsurance for losses caused by mine subsidence. Simply stated, claims are paid by the insurance companies and reimbursed by the Fund. In addition to providing reinsurance for losses resulting from mine subsidence claims, the Fund's responsibilities include establishing rates, providing underwriting guidance to insurers, and investigating reported mine subsidence claims.The Fund was created by an act of the Illinois General Assembly in 1979. As specified in Article XXXVIIA of the Illinois Insurance Code, all insurance companies licensed by the state of Illinois are required to provide mine subsidence coverage as part of their property insurance, making Illinois the second State in the nation to make this type of coverage available to its residents. Prior to this legislation, property owners were unable to obtain mine subsidence coverage from their insurance carriers because conventional property insurance does not provide for any coverage that might be categorized as "ground movement".A Board of Directors comprised of six members from the insurance industry, four public members, and a licensed Illinois insurance agent is responsible for managing the Fund. Day to day activities are carried out by the Fund's President. All operations and expenses are funded by the premiums ceded by the insurance companies. The Fund is a tax paying entity and no financial subsidy of any kind is provided by the insurance industry or the state of Illinois.

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