HOUSE BILL No. 1120
DIGEST OF INTRODUCED BILL
Citations Affected: IC 27-7-9-9.
Synopsis: Mine subsidence insurance. Increases the maximum limit
of mine subsidence coverage that an insurer agrees to cede to the
commissioner of the department of insurance under a reinsurance
agreement, from $100,000 to $150,000 per structure insured.
Effective: July 1, 2001.
Becker, Hasler, Avery
January 9, 2001, read first time and referred to Committee on Insurance, Corporations and
First Regular Session 112th General Assembly (2001)
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HOUSE BILL No. 1120
A BILL FOR AN ACT to amend the Indiana Code concerning
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 27-7-9-9; (01)IN1120.1.1. -->
SECTION 1. IC 27-7-9-9 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2001]: Sec. 9. (a) An insurer making the type
of insurance described in Class 3(a) of IC 27-1-5-1 shall enter into a
reinsurance agreement with the commissioner. The reinsurance
agreement must include the following terms:
(1) The insurer agrees to cede to the commissioner one hundred
percent (100%) of any mine subsidence coverage issued under
this chapter, subject to a maximum limit of one hundred fifty
per structure insured.
(2) The insurer shall collect the premiums for mine subsidence
insurance, may retain a ceding commission in an amount set by
the commissioner, and shall remit the remainder of the premiums
to the commissioner for deposit in the mine subsidence insurance
(3) The insurer, in consideration of the ceding commission, shall:
(A) undertake the adjustment of losses under the mine
subsidence coverage issued under this chapter by the insurer,
with technical assistance provided under section 9.5 of this
(B) pay the taxes and absorb all other expenses necessarily
incurred by the insurer in the sale of policies and the
administration of the mine subsidence insurance program
under this chapter.
(4) The commissioner shall reimburse the insurer from the mine
subsidence insurance fund for all amounts paid to policyholders
for mine subsidence insurance claims.
(5) The insurer is not required to pay a claim for any mine
subsidence loss insured under this chapter if the amount available
in the mine subsidence insurance fund is insufficient to reimburse
the insurer for the claim.
(b) The determination of the commissioner as to the amount of the
ceding commission that an insurer may retain under subsection (a)(2)
must be based on a consideration of the insurer's reasonable
administrative costs (including agents' commissions).