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3929.50 DEFINITIONS |
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As used in sections 3929.50 to 3929.61 of the Revised Code:
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(A) |
"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 earthquake, landslide, volcanic eruption,
or collapse of strip mines, storm and sewer drains, or rapid
transit tunnels.
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(B) |
“Structure” means any one- to four-family dwellings 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.
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(C) |
“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, as
approved by the superintendent of insurance, and insurance for
such types, classes, and locations of property against the perils
of vandalism, malicious mischief, burglary, or theft, as the
superintendent shall designate.
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(D) |
“Homeowners insurance” means insurance on owner-occupied dwellings
providing personal multi-peril property and liability coverages
commonly known as homeowners insurance.
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(E) |
“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.
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(F) |
“Farm insurance” means insurance providing property coverage on
farm dwelling buildings.
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(G) |
“Dwelling fire insurance” means a policy providing property
coverage on residential buildings for the perils of fire and
lightning and additional coverages.
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3929.51 MINE SUBSIDENCE INSURANCE UNDERWRITING ASSOCIATION; REINSURANCE; GOVERNING BOARD |
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(A) |
The Ohio mine subsidence insurance underwriting association
is hereby created, consisting of 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 policies, to operate in accordance with the plan
of operation adopted pursuant to section 3929.53 of the Revised
Code. Every such insurer shall be a member as a condition of
its authority to write such insurance in this state.
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(B) |
The association, pursuant to sections 3929.50 to 3929.61 of
the Revised Code, and any plan of operation thereunder with
respect to mine subsidence insurance, may assume and cede
reinsurance on insurable risks written by its members.
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(C) |
For the purpose of governing the mine subsidence insurance
underwriting association, there is hereby created a mine
subsidence insurance governing board consisting of the
director of natural resources or the director’s designee,
as chairperson, the treasurer of state or the treasurer of
state’s designee, the superintendent of insurance or the
superintendent’s designee, and one representative from member
companies. The representative from member companies shall be
an Ohio domiciled member, elected every three years by members
of the association. All actions of the mine subsidence insurance
underwriting association shall be approved by the governing
board. The board may employ, compensate, and prescribe the
duties and powers of such employees and consultants as are
necessary to carry out sections 3929.50 to 3929.61 of the
Revised Code, and is authorized to enter into a contract with
the Ohio fair plan underwriting association for administrative
and claims adjusting services.
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3929.52 MINE SUBSIDENCE INSURANCE FUND |
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There is hereby created the mine subsidence insurance fund, which
shall be administered by the mine subsidence insurance governing
board for the purpose of making available insurance coverage against
mine subsidence as to any structure within this state. All of the
following apply to the fund:
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(A) |
The moneys in the fund shall be derived from premiums for reinsurance
assumed by the mine subsidence insurance underwriting association on
policies written by members of the association.
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(B) |
Premiums on mine subsidence coverage in policies written
by members of the association shall be established by the
plan of operation at a rate or within a schedule of rates
sufficient to satisfy all foreseeable claims upon the fund
during the period of coverage, giving due consideration to
relevant loss or claims experience or trend, to cover normal
costs of operation of the fund, and to provide a reasonable
reserve for unexpected contingencies. No deviation shall be
allowed from the premium established by the plan, but the mine
subsidence insurance governing board shall periodically review
the premium level and the experience data applicable to
operation of the fund and, with the approval of the
superintendent of insurance, make changes as required.
However, the premium level for mine subsidence coverage in
any policy delivered, issued for delivery, or renewed in a
county designated for optional coverage by the board in accordance
with division (A)(2) of section 3929.56 of the Revised Code shall
not exceed an annual rate that is greater than twenty dollars,
and the premium level for mine subsidence coverage in any policy
delivered, issued for delivery, or renewed in a county listed in
division (A)(1) of section 3929.56 of the Revised Code shall not
exceed an annual rate that is greater than five dollars.
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(C) |
Sections 3929.50 to 3929.61 of the Revised Code do not create any
liability on the part of the state beyond the amounts paid into
the fund and earned by the fund, nor is any liability created on
the part of the mine subsidence insurance underwriting association
or its members, the Ohio fair plan underwriting association, or
the Ohio insurance guaranty association or its members.
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(D) |
The treasurer of state shall be the custodian of the fund, which
shall not be part of the state treasury. All disbursements from
the fund shall be paid by the treasurer of state upon requisitions
signed by the chairperson of the mine subsidence insurance governing
board or the chairperson’s designee. The chairperson of the mine
subsidence insurance governing board may designate an authorized
representative of the Ohio fair plan underwriting association to
sign requisitions on the fund if the mine subsidence insurance
underwriting association has entered into a contract with the Ohio
fair plan underwriting association for administrative and claims
adjusting services. The representative, before signing any requisition,
shall file with the secretary of state a good and sufficient bond
payable to the state to insure the faithful performance of the
representative’s duty, in such sum as the board requires.
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3929.53 GOVERNING BOARD TO SUBMIT PROPOSED PLAN OF OPERATION; APPROVAL; AMENDMENTS |
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The mine subsidence insurance governing board shall submit to the
superintendent of insurance, for his approval, a proposed plan of
operation for the economical, fair, and nondiscriminatory administration
of the mine subsidence insurance fund under sections 3929.50 to 3929.61
of the Revised Code. If the superintendent of insurance disapproves
the proposed plan of operation, the governing board shall, within
fifteen days, submit for approval an appropriately revised plan of
operation and if the governing board fails to do so, or if the revised
plan is unacceptable, the superintendent shall promulgate a plan of
operation; provided, that the superintendent shall not approve or
promulgate a plan of operation until adequate financial resources
have been secured for start-up costs and initial reserves for the
insurance program established pursuant to sections 3929.50 to 3929.61
of the Revised Code.
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If amendment of the plan of operation is requested by the superintendent
or the governing board, the governing board shall submit to the
superintendent, for his approval, such amendments. If such amendments
are not approved by the superintendent, the governing board shall,
within fifteen days, submit for approval an appropriately revised
amendment. If the governing board fails to do so, or if the amendment
is not approved by the superintendent, the superintendent shall
promulgate such amendment as he finds necessary.
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The superintendent of insurance shall adopt the plan of operation
and all amendments thereto pursuant to Chapter 119 of the Revised
Code.
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3929.55 AUDITS BY AUDITOR OF STATE |
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The auditor of state shall, at least once a year, audit the
affairs of the mine subsidence insurance fund in order to
ascertain its financial condition and ability to fulfill
its obligations, whether the mine subsidence insurance
underwriting association in managing the fund has complied
with the law relating to the fund, and the equity of the
association’s plans and dealing with its subscribers.
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The auditor shall ascertain the expenses incurred in making
any such audit and shall certify the amount to the mine
subsidence insurance governing board for payment from the
fund.
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3929.56 MINE SUBSIDENCE COVERAGE FOR HOMEOWNERS |
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(A) |
(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.
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(2) |
Every insurer that offers basic property and homeowners
insurance insuring on a direct basis a structure located
in the counties of Delaware, Erie, Geauga, Lake, Licking,
Medina, Ottawa, Portage, Preble, Summit, and Wayne shall
offer to include, on an optional basis, mine subsidence
coverage provided by the association in each policy of basic
property and homeowners insurance that is delivered, issued
for delivery, or renewed in any such designated county.
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(B) |
The premium charged for mine subsidence coverage shall be
the same as the premium level set by the plan of operation
formulated pursuant to section 3929.53 of the Revised Code.
Any deductible shall be 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,
and the total insured value reinsured by the association shall
not exceed three hundred thousand dollars. This section does
not preclude any insurance company from selling insurance
coverage under this section in excess of three hundred
thousand dollars.
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3929.58 REINSURANCE AGREEMENT WITH PROPERTY INSURERS; CLAIMS ADJUSTING STAFF |
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All companies authorized to write basic property insurance in
this state shall enter into a reinsurance agreement with the
Ohio mine subsidence underwriting association in which each
company agrees to cede one hundred percent, up to three
hundred thousand dollars, of any subsidence insurance
underwritten to the association and, in consideration of the
ceding commission retained by the company, agrees to undertake
payment of taxes and all other expenses of the company necessary
for sale of policies. The association shall agree to provide a
claims adjusting staff and to pay from the mine subsidence
insurance fund all valid policyholder claims resulting from
subsidence.
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3929.59 DISPOSITION OF PREMIUMS COLLECTED |
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Thirty per cent of all mine subsidence insurance premiums
collected by each insurer for policies delivered, issued
for delivery, or renewed in a county designated for optional
coverage in accordance with division (A)(2) of section 3929.56
of the Revised Code, excluding premiums collected under such
policies for mine subsidence insurance coverage which is not
reinsured by the mine subsidence insurance underwriting
association, shall be retained by the insurer as a ceding
commission. The remainder of such premiums shall be remitted
by the insurer to the mine subsidence insurance underwriting
association.
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3929.60 REPORT OF AMOUNT OF PREMIUMS |
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Every mine subsidence insurance underwriting association member
shall report at times designated by the superintendent of
insurance the amounts of mine subsidence insurance premiums
collected by such member.
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3929.61 ASSOCIATION’S RIGHT OF RECOURSE |
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Except in case of fraud by the company, the Ohio mine subsidence
insurance underwriting association shall have no right of
recourse against the company.
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