§ 27-7-9-8 — Extent of coverage necessary; deductible

(a) Coverage for damage due to mine subsidence
must be available as an additional form of coverage under any
insurance policy providing the type of insurance described in Class 3(a)
of IC 27-1-5-1 to directly cover one (1) or more structures located in a
county identified under section 6 of this chapter. The mine subsidence
coverage must be available in an amount adequate to indemnify the
insured to the extent of:
(1) the loss in actual cash value of the covered structure due to
mine subsidence, less a deductible that:
(A) must be equal to two percent (2%) of the insured value of
the structure under the policy; but
(B) must be:
(i) no less than two hundred fifty dollars ($250); and
(ii) no more than five hundred dollars ($500); and
(2) up to fifteen thousand dollars ($15,000) for additional living
expenses reasonably and necessarily incurred by an insured who
is temporarily displaced as a direct result of damage caused by
mine subsidence to the covered structure in which the insured
resides, if no other type of coverage provided by the policy of the
insured indemnifies the insured for these living expenses.
An insured who elects to purchase coverage under subdivision (1) may
waive coverage under subdivision (2) at the election of the insured.
(b) An insurer proposing to issue a policy providing the type of
insurance described in Class 3(a) of IC 27-1-5-1 to cover one (1) or
more structures located in a county identified under section 6 of this
chapter shall inform the prospective policyholder of the availability of
mine subsidence coverage under this section. An insurer shall inform
the prospective policyholder of the availability of mine subsidence
coverage under this subsection when a policy described in this
subsection is issued.
(c) When an insurer informs a prospective policyholder of the
amount of the premium for the mine subsidence coverage that is
available as an additional form of coverage under a policy as required
by subsection (a), the premium for the mine subsidence coverage must
be stated separately from the premium for the other coverage provided
by the policy. The amount of the premium for mine subsidence
coverage provided by an insurer under this section must be set
according to the premium level set by the commissioner under section
10 of this chapter.
(d) Except as provided in subsection (f), an insurance policy
providing the type of insurance described in Class 3(a) of IC 27-1-5-1
to directly cover one (1) or more structures located in a county
identified under section 6 of this chapter must include the mine
subsidence coverage provided for under subsection (a) if the
prospective insured (before issuance of the policy) or the insured
(before renewal of the policy) indicates that the coverage is to be
included in the policy.
(e) An insurer is not required to provide mine subsidence coverage
under subsection (a) under any insurance policy in an amount
exceeding the amount that is reimbursable from the fund under section
9(a)(4) of this chapter.
(f) An insurer must decline to make the mine subsidence coverage
provided for under subsection (a) available to cover a structure
evidencing unrepaired mine subsidence damage, until necessary repairs
are made. An insurer may also decline to make the mine subsidence
coverage available under an insurance policy if the insurer has:
(1) declined to issue the policy;
(2) declined to renew the policy; or
(3) canceled all coverage under the policy for underwriting
reasons unrelated to mine subsidence.

Legislative History

As added by P.L.164-1986, SEC.1. Amended by P.L.29-1987, SEC.2; P.L.150-1990, SEC.1; P.L.124-1992, SEC.4; P.L.1-1993, SEC.206; P.L.116-1994, SEC.57; P.L.91-1998, SEC.9; P.L.132-2001, SEC.3; P.L.182-2001, SEC.3; P.L.101-2016, SEC.4.