215 ILCS 5/810.1: Reinsurance Agreements.

(Text of Section before amendment by P.A. 104-519)

All insurers shall enter into a reinsurance agreement with the Fund. The reinsurance agreement shall be filed with and approved by the Director. The agreement shall provide that each insurer shall cede 100% of any subsidence insurance written up to the limits contained in Section 805.1(c) to the Fund and, in consideration of the ceding commission retained by the insurer, agrees to distribute informational publications provided by the Fund on a schedule set by the Fund, undertake adjustment of losses, payment of taxes, and all other expenses of the insurer necessary for sale of policies and administration of the mine subsidence insurance coverage. The Fund shall agree to reimburse the insurer for all amounts reasonably and properly paid policyholders from claims resulting from mine subsidence and for expenses specified in the reinsurance agreement. In addition, the reinsurance agreement may contain, and may authorize the Fund to establish and promulgate deductibles. The reinsurance agreement may also contain reasonable rules and procedures covering insurer documentation of losses; insurer reporting of claims, reports of litigation, premiums and loss payments; loss payment review by the Fund; remitting of premiums to the Fund; underwriting; and cause and origin investigations; and procedures for resolving disputes between the insurers and the Fund.

(Text of Section after amendment by P.A. 104-519)

Reinsurance Agreements. To obtain reinsurance from the Fund for mine subsidence coverage offered under this Article, an insurer shall execute and return to the Fund, prior to receipt by the insurer of any mine subsidence claim for which reinsurance is sought, a reinsurance agreement with the Fund in a form updated from time to time by the Board of Directors and filed with and approved by the Director. The agreement, which may include a specific effective date and expiration date, shall provide that each insurer shall cede 100% of any mine subsidence insurance written up to the limits then established and in effect pursuant to subsection (c) of Section 805.1 to the Fund and, in consideration of the ceding commission retained by the insurer, agrees to distribute informational publications provided by the Fund, undertake adjustment of losses, payment of taxes, and all other expenses of the insurer necessary for sale of policies and administration of the mine subsidence insurance coverage. The Fund shall agree to reimburse the insurer for all amounts reasonably and properly paid to policyholders from claims resulting from mine subsidence and for expenses specified in the reinsurance agreement. The reinsurance agreement may also contain reasonable provisions, rules, and procedures related to underwriting standards; language that insurers must include or not include in mine subsidence coverage forms used by insurers; remitting of premiums to the Fund; insurer documentation of losses; insurer reporting of premiums, claims, loss payments, and litigation; loss payment review by the Fund; determinations of whether claimed damage was caused by mine subsidence, when mine subsidence damage was first reasonably observable, and whether movement was continuous; handling and adjustment of claims for damage caused by mine subsidence; control and direction of litigation or arbitration involving whether claimed damage was caused by mine subsidence, when mine subsidence damage was first reasonably observable, or whether movement was continuous or that may affect the interests of the Fund; subrogation; and procedures for resolving disputes between insurers and the Fund.