Underground mines, some of which have been abandoned for years, can be found in many parts of the state, particularly eastern Ohio. When buildings are constructed above mines, major damage to walls and foundations can occur if the mine collapses.

         The Ohio Legislature enacted Ohio Revised Code sections 3929.50 et seq. in January 1985. This Act authorized the establishment of the Ohio Mine Subsidence Insurance Underwriting Association (OMSIUA), the Mine Subsidence Governing Board and the Mine Subsidence Insurance Fund.

         The Mine Subsidence Insurance Fund (MSIF) is administered by the Governing Board and the Treasurer of State is the custodian of the Fund. The Governing Board consists of the Director of Natural Resources or designee as chairperson, the Superintendent of Insurance or designee, the Treasurer of State or designee, and one (1) representative from an Ohio domiciled member company. The MSIF was initially funded with state and federal government appropriations and is currently funded from premiums for reinsurance assumed by the Mine Subsidence Insurance Underwriting Association on policies written by its members. All state funds have been fully repaid. The premium established by the Governing Board with Superintendent of Insurance approval is intended to cover all foreseeable claims, normal operating expenses, and a reserve for unexpected contingencies.

         The Governing Board has contracted with the Ohio FAIR Plan Underwriting Association for administrative and claims services and has developed a Plan of Operations and the necessary forms for the implementation of this program. Mine subsidence programs in other states were carefully studied to help develop the Ohio Mine Subsidence Insurance Underwriting Association. Ohio FAIR Plan Underwriting Association personnel are trained to handle mine subsidence claims and necessary administrative duties. The Mine Subsidence Insurance Program went into effect 10/21/87.

         Insurers who write, on a direct basis, basic property or multi-peril policies for 1-4 family dwellings in the eligible counties of Ohio are required to become members of the Ohio Mine Subsidence Insurance Underwriting Association and offer this coverage to all eligible applicants.