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Established in 1979, the Illinois Mine Subsidence Insurance Fund reinsures insurance companies, so that insurers can make mine subsidence protection available to Illinois property owners.
The Fund provides the insurance industry with technical assistance, adjuster training, program guidance and primarily, reinsurance. We develop expertise in mine subsidence, mitigation and construction techniques through our research partnerships with major universities and government agencies.
Most importantly, we are committed to addressing the issues of mine subsidence in Illinois neighborhood by neighborhood. Through our investigations, town meetings, community forums and publications, we seek to inform and assist communities in preventing or avoiding mine subsidence damage, and preserving property values.
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 XXXVIIIA 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.
For over a quarter century, the Fund has taken a proactive approach to research and education in the field of property damage caused by mine subsidence and its effects, not only on individuals, but on whole communities, as well. It has worked in tandem with Federal and State agencies to develop new resources to aid those affected by mine subsidence. And, it continues to build a solid framework of public education through participation in community meetings, Trade Show exhibits, as well as providing brochures and making available educational resources to professionals in the fields of Insurance, Real Estate, Home Loans, and Land Development.
Looking to the Future
Experience dictates that mine subsidence does not just affect individuals and their families, it can also affect communities on the whole. Unrepaired damage can have a rippling negative effect on communities, promoting a decline in market values and an increase in rental properties. The Fund challenges all industry related professionals to share in the responsibility of educating those who live in areas that may be at risk for mine subsidence. Our combined effort is sure to make a significant impact on the future of undermined communities.
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