Current through all regulations passed and filed through September 16, 2024
(A) Purpose
The purpose of this rule is to implement sections
3929.50
to
3929.53
and
3929.55
to
3929.56
and
3929.58
to
3929.61
of the Revised Code which:
(1)
Establishes the "Ohio Mine Subsidence Underwriting Association,"
(2) Provides for the transfer of risk from
member insurers to the association, and
(3) Creates the "Mine Subsidence Insurance
Fund."
(B) Authority
This rule is promulgated pursuant to the authority vested in
the superintendent under section
3901.041
of the Revised Code.
(C)
Definitions
(1) "Basic property insurance"
means insurance against direct loss to property as defined and limited in
dwelling fire, homeowners, and farm policies and extended coverage endorsements
thereon, and insurance for such types, classes and locations of property
against the perils of vandalism, malicious mischief, burglary or theft, as the
superintendent of insurance shall designate.
(2) "Board" means the four-member board of
governors, empowered by division (C) of section
3929.51
of the Revised Code to govern the "Ohio Mine Subsidence Insurance Underwriting
Association" and the "Ohio Mine Subsidence Insurance Fund."
(3) "Homeowners insurance" means insurance on
owner-occupied dwellings providing personal multi-peril property and liability
coverages, commonly known as "homeowners insurance."
(4) "Farm insurance" means insurance
providing property coverage on farm dwelling buildings.
(5) "Dwelling fire insurance" means a policy
providing property coverage on residential buildings for the perils of fire and
lightning and additional coverages.
(6) "Member" means all insurers authorized to
write and engaged in writing within the state, on
a direct basis, basic property insurance or any component thereof in
multi-peril and policies.
(7) "Mine
subsidence" means loss caused by the collapse or lateral or vertical movement
of structures resulting from the caving in of underground mines, including coal
mines, clay mines, limestone mines, and salt mines. Mine subsidence does not
include loss caused by earthquakes, landslide, volcanic eruption, or collapse
of strip mines, storm and sewer drains or rapid transit tunnels.
(8) "Mine subsidence coverage" means the
limits and type of coverage as defined by the mine subsidence insurance
governing board in the coverage form and approved by the
superintendent.
(9) "Mine
Subsidence Insurance Underwriting Association," hereinafter referred to as
"association" means the association of members formed pursuant to section
3929.51
of the Revised Code.
(10) "Mine
Subsidence Insurance Fund," hereinafter referred to as "fund," means the fund
formed pursuant to section
3929.52
of the Revised Code which is administered by the board for the purpose of
making available insurance coverage against mine subsidence. The state
treasurer is the custodian of the fund.
(11) "Plan of operation," hereinafter
referred to as "plan," means the plan of operation approved by the
superintendent for the economical, fair and nondiscriminatory administration of
the requirements identified in sections
3929.50
to
3929.53
and
3929.55
to
3929.56
and
3929.58
to
3929.61
of the Revised Code.
(12) "Strip
mines" means any surface mine.
(13)
"Structure" means any one to four-family dwelling as defined and limited in
dwelling fire, homeowners, and farm policies and other structures as described,
defined, or limited in the mine subsidence insurance form.
(14) "Superintendent" means the
superintendent of insurance of the state of Ohio.
(15) "Treasurer" means the treasurer of the
state of Ohio.
(16) "Auditor" means
the auditor of the state of Ohio.
(D) Board of governors
(1) The association and fund shall be
administered by the board consisting of the director of natural resources or
the director's designee, as chairperson, the treasurer of the state or the
treasurer of state's designee, and one representative
from member companies. The representative from the member companies shall be an
Ohio-domiciled member of the association.
(2) The board shall approve all actions of
the association, have the responsibility of administering the association and
fund.
(3) The board shall meet as
often as is required to perform the duties of administration, and shall meet
upon the request of any single member of the board. In no event shall the board
meet less than two times per year.
(E) Meeting of members
(1) Members shall elect their authorized
representative every three years. The member company representative elected to
the board shall be an Ohio-domiciled company.
(2) The members may hold meetings as needed
and during any such meeting, a quorum shall consist of a simple majority of
members present.
(3) Each member
shall be entitled to one vote. Members in the same group of insurers shall be
entitled to one vote only.
(F) Liability
Every policy of mine subsidence insurance written hereunder
shall provide that such policy does not create any liability on the part of the
member issuing such policy, the association, or any organization with which it
may contract for administrative or claims services, beyond the net premium on
such policies paid into the fund. Such policies shall create no liability
beyond the amounts in the fund, on the part of the state of Ohio, the "Ohio
Insurance Guaranty Association" and its member companies or any other person or
organization.
(G) Notice of
availability of mine subsidence insurance
(1)
Every insurer that offers basic property and homeowners insurance insuring on a
direct basis a structure located in the counties of Athens, Belmont, Carroll,
Columbiana, Coshocton, Gallia, Guernsey, Harrison, Hocking, Holmes, Jackson,
Jefferson, Lawrence, Mahoning, Meigs, Monroe, Morgan, Muskingum, Noble, Perry,
Scioto, Stark, Trumbull, Tuscarawas, Vinton and Washington shall include mine
subsidence coverage provided by the Ohio mine subsidence insurance underwriting
association in each policy of basic property and homeowners insurance that is
delivered, issued for delivery or renewed in any of such counties.
(2) The mine subsidence insurance governing
board herein designates Delaware, Erie, Geauga, Lake, Licking, Medina, Ottawa,
Portage, Preble, Summit and Wayne counties as counties in which mine subsidence
coverage must be offered, on an optional basis, by an insurer.
(a) Every insurer that offers basic property
and homeowners insurance insuring on a direct basis to a structure located in
any county designated in paragraph (G)(2) of this rule shall offer to include,
on an optional basis, mine subsidence coverage provided by the association in
each policy of basic property insurance that is delivered, issued for delivery,
or renewed in any such designated county.
(b) This offer shall contain language and be
in a form approved by the superintendent which includes a description of mine
subsidence coverage, a statement that the purchase of the coverage is optional,
and the premium charged for the coverage.
(H) Application for coverage
A member insurer who receives a request from a named insured or
applicant for mine subsidence shall forward to that named insured or applicant
an application for mine subsidence coverage. Such application may be included,
at the insurer's option, with the offer described in paragraph (G)(2)(a) of
this rule. The form of the application shall be approved by the
superintendent.
(I)
Administration and claims processing
The board may retain a contractor to provide administrative and
claims processing. When a contractor is retained, the board may from time to
time review:
(1) The performance of
the contractor;
(2) The procedures
and standards used by the contractor for administration and claims processing;
and
(3) The application of those
procedures and standards to applicants for insurance and to claims of
insureds.
(J)
Underwriting
(1) Mine subsidence coverage will
be available on eligible property. Eligible property must be:
(a) A structure as defined in this
rule;
(b) Covered by a valid basic
property or homeowners insurance policy.
(2) The member may refuse to provide mine
subsidence coverage on an otherwise eligible property where:
(a) The structure evidences un-repaired
subsidence damage; or
(b) The
structure evidences any mine subsidence damage in progress.
(3) The limit of liability for
direct loss caused by mine subsidence under this plan of operation shall not
exceed an amount equal to the coverage on the dwelling provided by a basic
property or homeowners policy, or three hundred thousand dollars, whichever is
less, and shall not exceed the amount expressed in the mine subsidence coverage
form as approved by the mine subsidence insurance governing board and approved
by the superintendent of insurance.
(4) All coverage provided pursuant to this
plan of operation is subject to a deductible as expressed in the mine
subsidence coverage form as approved by the mine subsidence insurance governing
board and approved by the superintendent of insurance, but at no time shall the
deductible be less than two hundred fifty dollars, or more than five hundred
dollars.
(K) Rates and
forms
(1) Rates. The board shall periodically
review the premium level and experience data and recommend to the
superintendent a rate or schedule of rates sufficient to satisfy:
(a) All foreseeable claims;
(b) Normal cost of operation; and
(c) A reserve for unexpected contingencies.
However, the premium level for mine subsidence coverage in a
county designated for optional coverage shall not exceed an annual rate that is
greater than twenty dollars. The premium level for mine subsidence coverage in
a county as designated in paragraph (G)(1) of this rule shall not exceed an
annual rate that is greater than five dollars.
(2) Forms. The policy forms and language
shall be approved by the superintendent.
(L) Audits
The auditor shall audit the affairs of the fund in accordance
with section
3929.55
of the Revised Code at least once each year. The auditor shall ascertain the
expenses incurred in making any such audit and shall certify the amount to the
board for payment from the fund.
(M) Reporting and statistics
(1) Claim reports. Members shall, upon
receipt of notice of claims from policyholder(s), confirm coverage and provide
formal notice of claim to the association.
(2) Financial reports:
(a) The fiscal period shall be the calendar
year.
(b) Members reports are
required quarterly and shall be due on the forty-fifth day following the close
of the quarter.
(c) Members'
reports shall be in forms approved by the board and shall include, at minimum:
(i) Gross written premium on a per county
basis.
(ii) Premium
cancelled/returned on a per county basis.
(iii) Ceding commission withheld (for
optional counties only).
(d) Members reports shall be accompanied by
the appropriate remittance which shall be full premium collected for mine
subsidence coverage in the counties denoted in paragraph (G)(1) of this rule
and the net premium (gross premium written, less ceding commission) in the
counties denoted in paragraph (G)(2) of this rule less any
cancellation/returns. In the event a balance is due to the insurer, that
balance shall be carried forward as a credit against future written premiums.
An insurer may apply for a refund only if it ceases to issue basic property or
homeowner insurance coverage.
(e)
Members shall report and pay premium taxes as required.
(f) The association shall review, verify and
reconcile members' reports and research, and rectify any
inconsistencies.
(g) The
association shall remit receipts to the fund, said remittance to be supported
by a summary report of premium written, cancelled/non-renewed, net premium
written and commission taken.
(3) Statistical reports. Members shall
compile and file, on a quarterly basis with the financial reports, a summary
report of statistics in a form approved by the board. Such reports shall, at
minimum, contain:
(a) Quarter and year-to-date
policy count by county and in total;
(b) Quarter and year-to-date premium written
by county.
(N) "Mine Subsidence Insurance Fund" The fund
shall receive all revenues, appropriations and investment earnings pursuant to
this plan of operation. Premiums collected will be considered program income in
accordance with the uniform administrative requirements for grants to state and
local governments and be used:
(1) To enable
the fund to be self-sustaining, with the fund invested by the treasurer of
state under guidelines established by the board;
(2) To provide a reserve for payment of
claims for verified claims from all types of mine subsidence, including
non-coal mining, post-1977 underground mines and active underground
mines;
(O) Investment of
custodial funds
With the approval of the board, the treasurer of state may
invest any monies in the fund that are in excess of the amounts required to
meet the immediate cash needs and operating expenses of the fund. The board
shall not provide guidelines for the investment of excess funds that are
broader or more liberal than the investment provisions for property casualty
insurance companies set forth in Chapter 3925. of the Revised Code.
(P) Reinsurance agreement
(1) Every insurer authorized and engaged in
writing on a direct basis any property coverages in the state of Ohio shall
execute a reinsurance agreement with the association. The form of the
reinsurance agreement shall be in a form approved by the board.
(2) An insurer may request exemption from the
requirements of paragraph (P) of this rule by filing the exemption form with
the superintendent. The exemption shall be effective after review and approved
by the superintendent of insurance.
(3) Any insurer who has received an exemption
shall notify the association of any change in any circumstances that would be
reason to revoke the exemption.
(Q) Effective date of the plan
This plan of operation shall be effective upon the effective
date of this rule.
(R)
Amendments
Amendments to the plan may be requested by the board or
superintendent of insurance in accordance with the provisions of section
3929.53
of the Revised Code.
(S)
Meeting notice
(1) The board and each of its
committees and subcommittees shall provide notice of regular, special, and
emergency meetings as the same are scheduled by posting the dates, times,
locations, and agendas (if applicable) on the board's official web
site.
(2) The board maintains a
list of individuals who have requested individual notice of each meeting.
Individual notice may be given via mail, electronic mail, or facsimile.
(a) Any person who desires individual mail
notice of the meetings described in paragraph (S)(1) of this rule shall make
the request in writing to the board at its business address. The board may
refuse to honor a request for individual mail notice unless the person
requesting such notice has first supplied the board with a self-addressed,
stamped envelope for the transmission of each requested notice.
(b) Any person who desires individual
electronic mail notice of the meetings described in paragraph (S)(1) of this
rule shall make a request in writing to the board at its business address. The
board shall maintain a list of all persons who have requested individual
electronic mail notice in this manner. The board may purge the list of all
entries as it deems appropriate provided, however, that the board shall first
provide notice to any individual whose contact information will be purged at
least thirty days in advance.
(c)
Any person who desires individual facsimile mail notice of the meetings
described in paragraph (S)(1) of this rule shall make a request in writing to
the board at its business address. The board shall maintain a list of all
persons who have requested individual facsimile notice in this manner. The
board may purge the list of all entries as it deems appropriate provided,
however, that the board shall first provide notice to any individual whose
contact information will be purged at least thirty days in advance.
(d) The board may, at its sole option,
provide for an electronic means of requesting individual electronic mail of
facsimile notice of the meetings described in paragraph (S)(1) of this
rule.
(3) A
representative of the news media may obtain notice of all special or emergency
meetings of the council, its committees or its subcommittees by requesting such
in writing to the "Ohio Mine Subsidence Insurance Governing Board" at its
business address.
(a) The request must provide
the name of the person to be contacted, the agency whom the person represents,
and shall state whether the person wishes to be notified of regular, special,
or emergency meetings, or any combination thereof. Additionally, the request
shall specify whether the person wishes to be notified by mail, electronic
mail, or facsimile, and shall include the appropriate contact
information.
(b) The board shall
maintain a list of all news media representatives requesting notice of special
meetings. The board may purge the list of all entries as it deems appropriate
provided, however, that the board shall first provide notice to an individual
whose contact information will be purged at least thirty days in
advance.
(c) Notice of special
meetings shall be provided to news media representatives at least twenty-four
hours prior to the special meeting. Notice of emergency meetings shall be
provided to news media representatives by telephone or electronic means as soon
as practicable.
(4)
Notice given by mail is effective upon mailing. Notice given by telephone is
effective upon providing actual notice, leaving a message containing the
meeting information with any individual who answers the number provided by the
requestor or leaving a recorded message, or, if the board makes three
unsuccessful attempts to contact the requestor directly or to leave a voice
message. Notice given by electronic means shall be complete upon
transmission.
(T)
Severability
If any paragraph, term or provision of this rule is adjudged
invalid for any reason, the judgment shall not affect, impair or invalidate any
other paragraph, term or provision of this rule, but the remaining paragraphs,
terms and provisions shall be and continue in full force and effect.
