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Frequently Asked Questions About Mine Subsidence Insurance

1. Can we modify coverage form numbers to meet our needs?
You may delete the dashes and leave a blank space to accommodate your database. If this number is completely replaced by your own number, then you must file your variation with the Department of Insurance.
2. Are builders' risk policies eligible for mine subsidence coverage?
Yes - if the intended occupancy upon completion is a 1-4 family dwelling.
3. Are vacant and/or unoccupied properties eligible for mine subsidence coverage?
4. Our company provides coverage for some 1-4 family dwellings under commercial coverage forms. Are these 1-4 family dwellings eligible for mine subsidence coverage?
Yes - as long as the property is located in an eligible county and is occupied as a 1-4 family dwelling.
5. Can we require the insured/applicant to provide a written “yes” or “no” response indicating their desire for or decision against purchasing mine subsidence coverage?
Each company is obligated to notify its existing policyholders and new applicants of mine subsidence coverage availability. If you prefer to require a formal response from the insured or applicant, this is acceptable, but it is not required. Certainly, a formal response could be helpful to you should your company be called upon to prove that the offer was made.
6. Our company provides coverage under 3, 6, 9 and 12 month policies. If mine subsidence coverage is written, how much premium should be collected?
The annual premium for mine subsidence coverage is $5.00 for optional counties and $1.00 for mandatory counties. Therefore, the premium for an optional county on a 3 month contract would be $1.25, on a 6 month, $2.50, and on a 9 month, $3.75. The premium for a mandatory county on a 3 month contract would be $0.25, on a 6 month, $0.50, and on a 9 month, $0.75
7. Is coverage available for condominium owners under an HO-6?
Yes - if the entire building structure houses 1-4 families only.
8. Are condo units eligible for coverage?
1-4 family dwelling structure condo units used for residential purposes in mandatory and optional counties are eligible for coverage.
9. Are condo associations eligible for coverage?
The Ohio Revised Code states that 1-4 family buildings used for residential purposes in mandatory and optional counties are eligible for coverage.
10. What if a condo unit is covered but the association isn’t?
In the event of a claim, covered damage will be limited to the ownership interest the unit owner has in the property. For example, if the association owns the foundation of the unit, and the unit owner owns the drywall of the unit and both are damaged, there would not be coverage for the damage to the foundation. Unit owners and associations are encouraged to review their contracts and/or bylaws.
11. Can our company decline to provide mine subsidence insurance coverage?
Yes. The Plan of Operations indicates that a structure may not have evidence of unrepaired subsidence damage or mine subsidence damage in progress. Also, the coverage form indicates that property which is vacant or 50% unoccupied for more than 60 consecutive days is not eligible.
12. If our company is providing basic property insurance or tenant homeowners insurance only, can mine subsidence coverage be written with the “contents only” contract?
No - contents coverage is not afforded by the Mine Subsidence Insurance Coverage Form, whether owner or tenant occupied.
13. Can we add our company logo or letterhead to the forms?
Yes. If the form is printed, to assist the customer in returning the form to you, at least your address should be added.
14. Are rules and forms going to be printed by Insurance Services Office (ISO)?
15. Can we print the eligibility notice on one side and print the application on the reverse side?
Yes. Instead, you may wish to use the OFP-MSI-4 which combines both forms into one.
16. Our company intends to mail the Ohio Mine Subsidence Insurance Offer Form for Optional Counties with every expiration notice on 1-4 family dwelling policies. Is this acceptable? And, if so, if an insured in an exempt county wants to buy the mine subsidence coverage, can we collect the premium and attach the coverage form to their contract?
The Ohio Mine Subsidence Insurance Offer Form for Optional Counties may be given to all insureds and prospective insureds. However, the property must be located in an eligible county for MSI coverage to be provided.
17. Is any variation to the Ohio Mine Subsidence Insurance Offer Form, the application or the coverage form permissible?
No variation is permissible in the verbiage of any of the forms. However, your company may have the forms printed in any format.
18. Does the 2% deductible apply to the policy’s total insured value or to the amount of coverage for mine subsidence?
The 2% deductible applies on a per occurrence basis and to the mine subsidence coverage being provided. There is a minimum deductible of $250 and a maximum of $500. E.g. – MSI coverage of $12,500 or less will have a $250 deductible, MSI coverage of $25,000-$300,000 will have a $500 deductible.
19. Are there any buildings covered for mine subsidence damage besides the dwelling?
Yes - private garages are covered. Please refer to the Mine Subsidence Insurance Coverage Form for eligibility and limitations.
20. Must the companies provide the supplies of applications, coverage forms and notices of mine subsidence insurance to their agents?
Yes – the verbiage must be identical to that provided in the sample forms; these sample forms may also be duplicated by the company for distribution to agents.
21. Must my company file the MSI Coverage Form with the Department of Insurance?
No - the coverage form has been approved for use by the Department of Insurance for all members of the OMSIUA.
22. The coverage form indicates that the OMSIUA may cancel the mine subsidence coverage. For what reason might the OMSIUA cancel the mine subsidence coverage and will my company be advised of such cancellation?
On rare occasions, the Association may give a direct Notice of Cancellation. Reasons include fraud, material misrepresentation or other appropriate reasons. If such notice is given, the company who has provided the coverage would be provided a copy of such notice. The company would then refund the unearned portion of the premium for the mine subsidence coverage and would indicate that refund as a debit to premium collected when filing its next quarterly report.
23. If my company cancels its policy and the insured requests that the mine subsidence coverage be left intact, can we allow this?
No. Under the Mine Subsidence Insurance Coverage Form, the mine subsidence coverage will terminate when your company’s policy terminates.
24. Can an insured endorse the mine subsidence coverage onto a policy mid-term?
Yes - however, there will be a 15 day waiting period for coverage being provided mid-term. Such an endorsement would only be made for properties in optional counties.
25. Our Company issues some basic property insurance policies on a schedule providing coverage to more than one location. Should an application for MSI be completed for each location? Should the appropriate premium be remitted for each location?
One application may be completed by the applicant indicating that the “Address of Property” is “scheduled per the attached.” A schedule listing specific amounts for each location should then be attached to the application and should be retained by your company. The appropriate premium should be remitted for each of the 1-4 family dwelling properties to be insured. If the 1-4 family dwelling are in a mandatory county, the coverage would automatically be “rolled on” and premium collected for each structure.
26. How does our company report data?
Companies report their quarterly activity online. Please access our website at www.ohiominesubsidence.com. To register, go to “Member Companies” and click Login/Register.
27. To whom should checks be made payable when our company forwards premium with its quarterly reports?
Your company should make its check payable to: Treasurer of State - Mine Subsidence Insurance Fund.
28. My company feels it qualifies for an exemption from the Mine Subsidence Insurance Underwriting Association. What is the process for filing for exempt status?
A request for an exemption may be started by filling out an exemption form. These are available in this OMSIUA Procedural Guide or on the OMSIUA website (https://members.ohiofairplan.com/OMSI/OMSIHome.aspx) under the Member Companies section. Once it is received by the OMSIUA, it will be submitted to the Ohio Department of Insurance for approval. If it is approved, the company will be marked as exempt in the OMSIUA system and a copy of the approved exemption will be sent to the company. Unless approved, quarterly reports are required by state law.

The exemption form should be completed and emailed to OMSIUA at omsi@ohiofairplan.com. The forms will be forwarded to the Director of Insurance for approval of the exemption. Once the exemption is approved, a copy of the approved and signed exemption form will be emailed to the company.
29. What should our company do when a mine subsidence claim is presented?
The Ohio FAIR Plan Claim Department will adjust all claims on behalf of the Ohio Mine Subsidence Insurance Underwriting Association. Please report claims at www.ohiominesubsidence.com. If the claim requires immediate attention, please contact the claims department at 614-823-6008.
30. How can I get my new company setup with the OMSIUA?
Once a company has been licensed by the Ohio Department of Insurance, the OMSIUA will send a letter to the company outlining anything that is needed.
31. When are you sending the email for the self-audit?
The email for the self-audit will be sent out in the beginning of the 2nd quarter. A company only has to submit a self-audit once every three years. If a self-audit is needed that year, an email will be sent outlining all due dates for the acknowledgement and the audit.
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