KRS 304.44-030: Separate premium for insurance against loss by subsidence --

Administrative regulation -- Reimbursement of living expenses of displaced

owner.

(1) (a) Every insurance policy issued or renewed insuring on a direct basis a structure

located in a county or portion of a county in this state, except for counties

exempted pursuant to KRS 304.44 -060, shall include, at a separately stated

premium, insurance for loss occurring after July 15, 1984, caused by mine

subsidence unless waived in writing by the insured.

(b) The premium charged for coverage shall be the same as the premium level set

by the administrator.

(c) The loss coverage shall be the loss in excess of two percent (2%) of the

policy's total insured value, but at no time shall the deductible be less than two

hundred fifty dollars ($250) nor more than five hundred dollars ($500).

(d) The maximum total insured value reinsured by the administrator per structure

shall be:

1. Except as provided in subparagraph 2. of this paragraph, five h undred

thousand dollars ($500,000); or

2. Subject to approval by the commissioner and paragraph (e) of this

subsection, an amount determined by the administrator.

(e) Any amount determined under paragraph (d)2. of this subsection shall:

1. Be based on:

a. The solvency of the fund;

b. Premiums; and

c. Deductibles; and

2. Except as provided in paragraph (f) of this subsection, take effect no

sooner than nine (9) months after insurers are notified of the amount.

(f) An insurer may provide coverage in an amo unt determined by the

administrator under this subsection at any time after receiving notification of

the amount.

(g) The commissioner shall promulgate an administrative regulation in

accordance with KRS Chapter 13A to establish a process for notifying

insurers of the amount determined by the administrator under this subsection.

(h) An insurer shall not be required to write a policy for mine subsidence

coverage in excess of the amount reimbursable from the fund as authorized by

this subtitle.

(2) The coverage provided pursuant to subsection (1) of this section shall also include

coverage, up to fifty thousand dollars ($50,000), for the additional living expenses

reasonably and necessarily incurred by the owner of a residence who has been

temporarily displaced as the direct result of damage to the residence caused by mine

subsidence.