3.1.
Date coverage to be offered. --On and after the effective date of this rule,
all insurance policies issued in the State of West Virginia by insurance
companies subject to this rule which provide fire insurance on structures
eligible for mine subsidence insurance shall include coverage for mine
subsidence insurance unless such insurance is waived by the insured. The waiver
shall conform to the requirements of Section 3.10 of this rule.
3.2. Amount of insurance. - Each policy
issued pursuant to this rule shall provide up to two hundred thousand dollars
($200,000) of mine subsidence insurance in an amount not to exceed the amount
of fire insurance on the structure.
3.3. Premium rate. --The premium rate
schedule established by the Board is attached hereto as Appendix C. For the
purpose of selecting rates a non-dwelling structure is defined as a building
not used principally for residential purposes or which houses more than four
(4) family units.
3.4. Coverage
form. - Each policy issued pursuant to this rule shall include only those
coverage forms for mine subsidence insurance which have been approved by both
the Board and the Insurance Commissioner of West Virginia [coverage Form WVMS-1
( most current edition) Coal Mine Subsidence Coverage Part (Dwelling Structure)
or coverage Form WVMS-2 (most current edition), Coal Mine Subsidence Coverage
Part (Non-Dwelling Structure)]. Refer to Appendix A and B respectively, for
coverage part wording. These forms may be reproduced under the name of the
issuing insurance company.
3.5.
Structures eligible for mine subsidence insurance. --Both dwelling structures
and non-dwelling structures are eligible for mine subsidence
insurance.
3.6. Exemption of
certain mobile home forms. --Insurance companies whose mobile home policy forms
currently provide subsidence insurance are exempt from the provisions of this
rule: Provided, however, that this exemption applies only to mobile home policy
forms.
3.7. Loss deductible. - The
sum of two hundred fifty dollars ($250) shall be deducted from each loss caused
by mine subsidence.
3.8. Ceding
commission. --A ceding commission of thirty percent (30%) of the gross premium
shall be assessed.
3.9. Reinsurance
agreement. --Each insurance company subject to this rule shall enter into a
reinsurance agreement with the Board. Refer to Appendix F for the wording of
the Reinsurance Agreement.
3.10.
Waivers. - All insurance policies subject to this rule, written after February
28, 1983, shall include mine subsidence insurance UNLESS waived in writing by
the policy holder. Insurance Companies shall retain a copy of each signed
waiver for a period of five years from the date of the waiver. The Board
recommends the following waiver clause be used:
WAIVER OF INSURANCE
I (we) do not desire Coal Mine Subsidence Insurance coverage
and hereby waive any right to such coverage, under this policy or any future
policy concerning my (our) interest in the property described in the policy (in
the application), unless I (we) request Coal Mine Subsidence Insurance
coverage, in writing, at some future date.
Signature of Named Insured(s)
Policy Number (If Renewal)
Date Signed
3.11. Exclusion. --Insurance companies
holding a signed waiver under the date of the previous rule, April 1, 2007,
will not be required to obtain a new waiver, and waivers shall not be required
on property located in the following fifteen (15) counties:
Berkeley, Cabell, Calhoun, Hampshire, Hardy, Jackson,
Jefferson, Monroe, Morgan, Pendleton, Pleasants, Ritchie, Roane, Wirt or
Wood.
3.12. Waiting period.
- Mine subsidence insurance becomes effective no earlier than thirty (30)
calendar days after the application date.
