| (A) "Mine subsidence" means loss caused by the collapse or | 20 |
|
lateral or vertical movement of structures resulting from the | 21 |
|
caving in of underground mines, including coal mines, clay mines, | 22 |
|
limestone mines, and salt mines. "Mine subsidence" does not | 23 |
|
include loss caused by earthquake, landslide, volcanic eruption, | 24 |
|
or collapse of strip mines, storm and sewer drains, or rapid | 25 |
|
transit tunnels. | 26 |
| (C) "Basic property insurance" means insurance against
direct | 31 |
loss to property as defined and limited in standarddwelling fire, | 32 |
| homeowners, and farm
policies and extended coverage endorsements | 33 |
| thereon, as approved
by the superintendent of insurance, and | 34 |
| insurance for such types,
classes, and locations of property | 35 |
| against the perils of
vandalism, malicious mischief, burglary, or | 36 |
| theft, as the
superintendent shall designate. | 37 |
| (D) "Homeowners insurance" means insurance on
owner-occupied | 38 |
| dwellings providing personal multi-peril property
and liability | 39 |
coverages commonly known as homeowners insurance,
and is subject | 40 |
to such reasonable underwriting standards,
exclusions, | 41 |
deductibles, rates, and conditions as are customarily
used by | 42 |
member insurers for similar coverages. | 43 |
| Sec. 3929.51. (A) The Ohio mine subsidence insurance | 52 |
|
underwriting association is hereby created, consisting of all | 53 |
|
insurers authorized to write and engaged in writing within the | 54 |
|
state, on a direct basis, basic property insurance or any | 55 |
|
component thereof in multi-peril policies, to operate in | 56 |
|
accordance with the plan of operation adopted pursuant to section | 57 |
|
3929.53 of the Revised Code. Every such insurer shall be a
member | 58 |
| of the association and shall remain a member as a
condition of its | 59 |
| authority to write such insurance in this state. | 60 |
| (C) For the purpose of governing the mine subsidence | 65 |
|
insurance underwriting association, there is hereby created a
mine | 66 |
| subsidence insurance governing board consisting of the
director of | 67 |
natural resources or histhe director's designee, as
chairman | 68 |
chairperson, the
treasurer of state or histhe treasurer of | 69 |
state's designee, the
superintendent of
insurance or histhe | 70 |
| superintendent's designee, and one
representative from member | 71 |
|
companies. The representative from member companies shall be an | 72 |
|
Ohio domiciled member, elected every three years by members of
the | 73 |
association. The representative shall be elected at a
meeting of | 74 |
the members or their authorized representatives, which
shall be | 75 |
held at a time and place designated by the
superintendent. All | 76 |
| actions of the mine subsidence insurance
underwriting association | 77 |
| shall be approved by the governing
board. The board may employ, | 78 |
| compensate, and prescribe the
duties and powers of such employees | 79 |
| and consultants as are
necessary to carry out sections 3929.50 to | 80 |
| 3929.61 of the Revised
Code, and is authorized to enter into a | 81 |
| contract with the Ohio
fair plan underwriting association for | 82 |
| administrative and claims
adjusting services. | 83 |
| (B) Premiums on mine subsidence coverage in policies
written | 93 |
|
by members of the association shall be established by the
plan of | 94 |
|
operation at a rate or within a schedule of rates
sufficient to | 95 |
|
satisfy all foreseeable claims upon the fund during
the period of | 96 |
|
coverage, giving due consideration to relevant loss
or claim | 97 |
|
experience or trends, to cover normal costs of operation
of the | 98 |
|
fund, and to provide a reasonable reserve for unexpected | 99 |
|
contingencies. No deviation shall be allowed from the premium | 100 |
|
established by the plan, but the mine subsidence insurance | 101 |
|
governing board shall periodically review the premium level and | 102 |
|
the experience data applicable to operation of the fund and, with | 103 |
|
the approval of the superintendent of insurance, make changes as | 104 |
|
required. However, the premium level for mine subsidence
coverage | 105 |
|
in any policy delivered, issued for delivery, or renewed
in a | 106 |
|
county designated for optional coverage by the board in
accordance | 107 |
with division (B)(1)(A)(2) of section 3929.56 of the Revised
Code | 108 |
| shall
not exceed an annual rate that is greater than twenty | 109 |
|
dollars, and
the premium level for mine subsidence coverage in
any | 110 |
| policy
delivered, issued for delivery, or renewed in a county | 111 |
|
listed in
division (A)(1) of section 3929.56 of the Revised Code | 112 |
|
shall not
exceed an annual rate that is greater than five
dollars. | 113 |
| (D) The treasurer of state shall be the custodian of the | 121 |
|
fund, which shall not be a part of the state treasury. All | 122 |
|
disbursements from the fund shall be paid by the treasurer of | 123 |
state upon requisitions signed by the
chairmanchairperson of
the | 124 |
mine
subsidence insurance governing board or
histhe chairperson's | 125 |
designee. The
chairmanchairperson of the mine subsidence | 126 |
|
insurance governing
board may
designate an authorized | 127 |
|
representative of the Ohio fair plan
underwriting association to | 128 |
|
sign requisitions on the fund if the
mine subsidence insurance | 129 |
|
underwriting association has entered
into a contract with the Ohio | 130 |
|
fair plan underwriting association
for administrative and claims | 131 |
|
adjusting services. The
representative, before signing any | 132 |
|
requisition, shall file with
the secretary of state a good and | 133 |
|
sufficient bond payable to the
state to insure the faithful | 134 |
performance of
histhe
representative's duty, in such sum
as the | 135 |
|
board requires. | 136 |
| Sec. 3929.56. (A)(1) Every insurer that offers basic | 143 |
|
property and homeowners insurance insuring on a direct basis a | 144 |
|
structure located in the counties of Athens, Belmont, Carroll, | 145 |
|
Columbiana, Coshocton, Gallia, Guernsey, Harrison, Hocking, | 146 |
|
Holmes, Jackson, Jefferson, Lawrence, Mahoning, Meigs, Monroe, | 147 |
|
Morgan, Muskingum, Noble, Perry, Scioto, Stark, Trumbull, | 148 |
|
Tuscarawas, Vinton, and Washington shall include mine
subsidence | 149 |
| coverage provided by the Ohio mine subsidence
insurance | 150 |
| underwriting association in each policy of
basic
property and | 151 |
| homeowners insurance that is delivered, issued for
delivery, or | 152 |
renewed in any of such counties on or after January
1, 1993. | 153 |
(B)(1) The mine subsidence insurance governing board may | 154 |
designate any county, other than a county listed in division (A) | 155 |
of this section, in which mine subsidence coverage must be | 156 |
offered, on an optional basis, by an insurer in accordance with | 157 |
division (B)(2) of this section. Any designation made by the
board | 158 |
under division (B)(1) of this section shall be made by the
board | 159 |
in the plan of operation of the association and shall be
based on | 160 |
a county's risk of loss due to mine subsidence and other
criteria | 161 |
established by the board. | 162 |
| (2) Every insurer that offers basic property and
homeowners | 163 |
insurance insuring on a direct basis a structure
located in any | 164 |
county designated by the board in accordance with
division (B)(1) | 165 |
of this sectionthe counties of Delaware, Erie, Geauga, Lake, | 166 |
| Licking, Medina, Ottawa, Portage, Preble, Summit, and Wayne shall | 167 |
| offer to include, on an
optional basis, mine subsidence coverage | 168 |
| provided by the
association in each policy of basic property and | 169 |
| homeowers
insurance that is delivered, issued for delivery, or | 170 |
renewed in
any such designated county on or after January 1, 1993. | 171 |
(C)(B) The premium charged for mine subsidence coverage shall | 172 |
|
be the same as the premium level set by the plan of operation | 173 |
formulated pursuant to section 3929.53 of the Revised Code. The | 174 |
loss covered shall be the loss in excess of two per cent of the | 175 |
policy's total insured valueAny deductible shall be expressed in | 176 |
| the mine subsidence coverage form as approved by the mine | 177 |
| subsidence insurance governing board and approved by the | 178 |
| superintendent of insurance, but at no time shall the deductible | 179 |
be less than two hundred fifty dollars or more than five hundred | 180 |
dollars, and the total insured value reinsured by the association | 181 |
shall not exceed fifty thousand dollars. This section does not | 182 |
preclude any insurance company from selling insurance coverage | 183 |
under this section in excess of fifty thousand dollars. | 184 |
| Sec. 3929.58. All companies authorized to write basic | 185 |
|
property insurance in this state shall enter into a reinsurance | 186 |
|
agreement with the Ohio mine subsidence insurance underwriting | 187 |
|
association in which each company agrees to cede one hundred per | 188 |
cent, up to fifty thousand dollars, of any subsidence insurance | 189 |
|
underwritten to the association for an amount as determined by the | 190 |
| mine subsidence governing board and approved by the superintendent | 191 |
| of insurance and, in consideration of the
ceding commission | 192 |
| retained by the company, agrees to undertake
payment of taxes and | 193 |
| all other expenses of the company necessary
for sale of policies. | 194 |
| The association shall agree to provide a
claims adjusting staff | 195 |
| and to pay from the mine subsidence
insurance fund all valid | 196 |
| policyholder claims resulting from
subsidence. | 197 |
| Sec. 3929.59. Thirty per cent of all mine subsidence | 198 |
| insurance premiums
collected by each insurer for policies | 199 |
| delivered, issued for delivery, or
renewed in a county designated | 200 |
for optional coverage in accordance with
division (B)(1)(A)(2) of | 201 |
| section 3929.56 of the Revised Code, excluding premiums
collected | 202 |
| under such policies for mine subsidence insurance coverage which | 203 |
| is
not reinsured by the mine subsidence insurance underwriting | 204 |
| association, shall
be retained by the insurer as a ceding | 205 |
| commission. The remainder of such
premiums shall be remitted by | 206 |
| the insurer to the mine subsidence insurance
underwriting | 207 |
| association. | 208 |