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 Insurance 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
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.