Prior to 1979, Illinois residents did not have insurance coverage for damages caused by mine subsidence. Since much of the mining was done decades ago, and many of the mining companies are no longer in existence, homeowners had very few opportunities to recover from the responsible party. Through an Act of the Illinois General Assembly, Illinois became the second state to make mine subsidence coverage available. The Act requires that mine subsidence coverage be offered for residences and commercial buildings in the State by all property insurance companies licensed to do business in Illinois. The statute also created the Illinois Mine Subsidence Insurance Fund (IMSIF), making it the reinsurer for primary insurers that offer the coverage.
The Fund is governed by an eleven member Board of Directors comprised of insurance industry and public appointees. Regulatory oversight is provided by the Illinois Department of Insurance.