IllinoisHB5376104th General Assembly (2025–2026)HouseWALLET

MINE SUBSIDENCE INSURANCE FUND

Sponsored By: Sponsor information unavailable

Became Law

Summary

Amends the Mine Subsidence Insurance Article of the Illinois Insurance Code. Makes changes to defined terms. Provides that the moneys in the Illinois Mine Subsidence Insurance Fund shall be derived primarily from premiums for mine subsidence insurance ceded by insurers to the Fund pursuant to the Article and from investment income. In establishing mine subsidence insurance premium rates, provides that the Fund shall give due consideration to factors reasonably considered by an insurer when setting premium rates. Changes terms related to the appointment of directors in provisions concerning management of the Fund and establishes 3-year staggered terms for the directors. Provides that all directors shall be independent and owe a duty of care and duty of loyalty to the Fund. In provisions concerning mine subsidence coverage, provides that the loss covered shall be the loss in excess of any applicable deductible or retention in the policy, subject to the limit of insurance for mine subsidence damage stated in the policy. For all policies issued or renewed on or after January 1, 2027, provides that there shall be no deductible or retention applicable to mine subsidence damage. For all policies issued or renewed on or after the effective date of the amendatory Act, provides that the maximum amount of reinsured loss per residence, per commercial building, and per living unit shall be the amounts established by the Fund and approved by the Director. Provides that the residential and living unit coverage provided under the Article may also cover specified costs of debris removal, moving and storage of contents, and repair or replacement of landscaping. Makes changes in provisions concerning division of the Fund; exemptions; rights of insurers to refuse to provide mine subsidence coverage; arbitration; reinsurance agreements; distribution of premiums; reporting requirements; right of recourse and setoffs; subrogation; and powers of the Director of Insurance.

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Bill Overview

Analyzed Economic Effects

8 provisions identified: 3 benefits, 0 costs, 5 mixed.

Separate accounts; payouts limited to assets

Since January 1, 1994, the Fund keeps separate Residential and Commercial accounts. Money from one account cannot pay the other's claims. Overhead is split based on written premium. Insurers do not have to pay a reinsured subsidence claim beyond the money available in the right account. If that account is short, your claim payment can be reduced or unpaid.

Fund created with board and oversight

The law creates the Illinois Mine Subsidence Insurance Fund and lets it operate and contract. An 11‑member board runs the Fund. The Director regulates the Fund, reviews its rates at least every three years, and can examine records and require reports. The Fund must file rates, deductibles, and reinsurance limits; filings are approved after 30 days unless the Director acts, with one 30‑day extension. Insurers must provide data and cooperate with audits.

Mine subsidence coverage by default, county opt-outs

Beginning January 1, 1994, policies for homes, living units, and commercial buildings include mine subsidence coverage by default with a separate premium. You can remove it only by signing a written waiver. If you waived it before, your insurer sends a written notice about the coverage at each renewal. In counties with 1,000,000+ people and nearby counties, the Director exempts policies from the automatic add, but insurers must still offer coverage on request. The Fund keeps a list of exempt counties.

Unrepaired damage can block coverage, notices

Insurers may refuse subsidence coverage if a building shows unrepaired subsidence damage, until it is repaired. If the Fund confirms an ongoing subsidence loss, the insurer must mail you a separate notice within 60 days. The notice explains that keeping subsidence coverage may not be necessary and is optional after that point.

What subsidence claims cover and cap

Subsidence coverage can pay for debris removal, moving and storage, and landscaping if needed to make covered repairs and actually incurred. If your main policy covers extra living costs, those can also be paid within your limit. All damage from a single or continuous event counts as one occurrence. The Fund reimburses only up to the reinsured amount in force when the damage first became reasonably observable.

Zero deductibles in 2027, set limits

The Fund sets the premium for mine subsidence coverage. For policies issued or renewed on or after January 1, 2027, the deductible or retention is $0. For policies on or after January 1, 1996, minimum Fund reinsurance is $200,000 per residence or commercial building, and $15,000 per living unit. For policies on or after January 1, 2008, the Fund sets the maximum per property, subject to Director approval.

Consumer guides and research on subsidence

The Fund publishes an annual report. It makes at least two consumer guides explaining subsidence risks, claims, and coverage, and sets how they are shared with policyholders. The Fund may sponsor research to cut losses and improve how the program runs.

How insurers join and fund the Fund

Insurers must sign the Fund’s approved reinsurance agreement and cede 100% of subsidence insurance up to set limits. The Fund can reinsure intergovernmental self‑insurance pools on similar terms. The Fund sets a uniform ceding commission insurers may keep and insurers must send the rest of premiums to the Fund. Policy forms protect recovery rights after a loss, and the Fund can take over subrogation and receive recoveries.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

  • Amy Elik

    Affiliation unavailable

  • Anthony DeLuca

    Affiliation unavailable

  • Christopher Belt

    Affiliation unavailable

  • Erica Harriss

    Affiliation unavailable

  • Jawaharial Williams

    Affiliation unavailable

  • Jay Hoffman

    Affiliation unavailable

  • Jeff Keicher

    Affiliation unavailable

Roll Call Votes

All Roll Calls

Yes: 178 • No: 0

Senate vote 5/14/2026

Third Reading - Passed;

Yes: 58 • No: 0

House vote 4/9/2026

Third Reading - Short Debate - Passed

Yes: 106 • No: 0

House vote 3/24/2026

Do Pass as Amended / Short Debate Insurance Committee;

Yes: 14 • No: 0

Actions Timeline

  1. Public Act . . . . . . . . . 104-0519

    6/26/2026House
  2. Effective Date January 1, 2027

    6/26/2026House
  3. Governor Approved

    6/26/2026House
  4. Sent to the Governor

    6/12/2026House
  5. Passed Both Houses

    5/14/2026House
  6. Third Reading - Passed; 058-000-000

    5/14/2026Senate
  7. Placed on Calendar Order of 3rd Reading May 5, 2026

    4/30/2026Senate
  8. Second Reading

    4/30/2026Senate
  9. Placed on Calendar Order of 2nd Reading April 28, 2026

    4/22/2026Senate
  10. Approved for Consideration Assignments

    4/22/2026Senate
  11. Added as Alternate Co-Sponsor Sen. Erica Harriss

    4/16/2026Senate
  12. Referred to Assignments

    4/10/2026Senate
  13. First Reading

    4/10/2026Senate
  14. Chief Senate Sponsor Sen. Christopher Belt

    4/10/2026Senate
  15. Placed on Calendar Order of First Reading

    4/10/2026Senate
  16. Arrive in Senate

    4/10/2026Senate
  17. Third Reading - Short Debate - Passed 106-000-000

    4/9/2026House
  18. Placed on Calendar Order of 3rd Reading - Short Debate

    4/7/2026House
  19. Second Reading - Short Debate

    4/7/2026House
  20. Added Co-Sponsor Rep. Amy Elik

    4/7/2026House
  21. Placed on Calendar 2nd Reading - Short Debate

    3/25/2026House
  22. Added Co-Sponsor Rep. Jeff Keicher

    3/24/2026House
  23. Added Co-Sponsor Rep. Jawaharial Williams

    3/24/2026House
  24. Added Co-Sponsor Rep. Anthony DeLuca

    3/24/2026House
  25. Do Pass as Amended / Short Debate Insurance Committee; 014-000-000

    3/24/2026House

Bill Text

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