Wyo. Code R. 020-0001-5
Abandoned Mine Reclamation Program
Chapter 5: Liens for Reclamation on Private Lands
Effective Date: 12/13/1991 to 12/15/2009
Rule Type: Superceded Rules & Regulations
Reference Number: 020.0001.5.12131991
Date Filed 12/13/91
Expr Date
Supr Date
Repeal Date
Document Type RULES
Section 1. General. This chapter establishes rules and regulations for a program of insurance administered by the Land Quality Division to insure structures in Wyoming from damage resulting from mine subsidence.
Section 2. Definitions. In addition to the definitions contained in W.S. 35-11-1301 the following definitions apply:
(a) 'Aggregate' means the total amount of funds available in the Mine Subsidence Insurance Program at any given time to pay for claims of which the Mine Subsidence Insurance Program has been notified and which are in the process of settlement.
(b) 'Estimated value' means the current fair value of the structure as determined by generally accepted professional standards which take into account local market conditions.
(c) 'Fixture' means sidewalks, driveways, utilities and other physical improvements permanently affixed to the realty which enhance use and enjoyment of the realty which are either owned by or the responsibility of the insured, excluding land, trees, plants and crops.
(d) 'Known subsidence areas' means lands beneath which mining has occurred and such mining has been documented in public records, or where there is physical evidence of subsidence.
(e) 'Loss' means physical damage to a structure or the adverse effect to the utility of a structure as defined by W.S. 35-11-1301(a)(iii).
Section 3. Rights of Subrogation. In the event of a loss, an insured person's rights to recover from another become the rights of the State up to the amount of the covered loss and the insured person must protect these rights and assist representatives of the State in enforcing them.
(a) Coverage shall be for a term of one year and shall renew upon payment of the premium unless cancelled or non-renewed pursuant to Section 11.
(b) Excluded from coverage are:
(i) Existing and unrepaired mine subsidence loss, except that structures damaged prior to June 11, 1986 shall be covered under the conditions enumerated in W.S. 35-11-1302 (a) (i) through (v).
(ii) Any damage not due to mine subsidence.
(iii) Bodily injury or death.
(iv) Damage to contents not attached to and part of the structure, personal property or automobiles (owned or non-owned) or motorized vehicles whether used to service the premises or not.
(v) Except as provided in this paragraph, additional living expenses or the interruption of rental income incurred by an insured person. Reasonable additional living expenses can be covered where a residential structure will be unliveable during a reasonable repair period, or a professional engineer or engineer in a public office having authority to make such decisions finds that there is imminent threat to life as a result of a loss.
(vi) Loss to land, trees, plants and crops.
(vii) Loss to structures vacant or unoccupied for more than 180 days unless the owner has made arrangements for the upkeep and inspection of the structure on a monthly basis.
(viii) Loss to mobile homes except as covered in Section 9.
(ix) Loss to structures excluded under Section 10.
(c) In order to be accepted for insurance the property owner shall allow inspections of the insured structure. The purpose of the inspections shall be to determine structural integrity and to document the extent of any existing damage from mine subsidence.
(d) Insured structures shall be subject to reinspection. All reasonable attempts to notify the property owner shall be made prior to a reinspection.
The deductible per loss on residential structures shall be 1 percent of the amount of the coverage purchased but in no event shall the deductible be less than $250 nor more than $500. The deductible per loss on commercial structures shall be 1 percent of the amount of coverage purchased but in no event shall the deductible be less than $250 nor more than $1,000. After a deductible has been met in any calendar year, no further deductibles shall be charged to any subsequent losses occurring during the remainder of that calendar year. No deductible shall be assessed for property owners who qualify for retroactive coverage under W.S. 35-11-1302(a).
(a) Except as provided by this Section, the maximum amount of insurance available for all losses to an insured residential or commercial structure shall be $150,000 per loss.
(b) Structures shall not be insured for more than their estimated value nor for less than 75 percent of estimated value as limited by this Section. Detached structures which occupy a portion of the realty on which a residential structure is situated may be insured for an amount not to exceed their estimated value.
(a) Losses shall be reported to the Administrator within ninety days from the time loss occurs. The Administrator will verify that the coverage is in force and assign an adjuster to determine the cause and extent of the loss, document the damage and assist the insured in obtaining repair cost estimates and in completing the proof of loss.
(b) The limits for settling losses after payment of the deductible shall be:
(i) Claims adjusters up to $2,000.
(ii) The Subsidence Insurance Program Manager with the concurrence of the Abandoned Mine Land Program Manager up to $10,000.
(iii) The Administrator with the concurrence of the Governor, over $10,000 up to the policy maximum.
(c) Drafts or checks used to pay for losses shall be in such form that endorsement by the insured will constitute a full release to the Mine Subsidence Insurance Program and the State.
(d) Losses shall be settled for the cost to repair the structure to its condition prior to subsidence damage or the amount of insurance on the structure, whichever is less.
(a) Premium rates shall be established by an actuarial evaluation of the mine subsidence risk in Wyoming. Premiums shall be calculated to cover the expenses of administration, the cost of anticipated claims and establishment of a reserve to cover catastrophic losses and ensure solvency of the Mine Subsidence Insurance Program.
(b) Based upon actuarial evaluation premium rates for residential structures shall be set by the Governor within the range of $1.75 and $2.25 per thousand of coverage, and $2.75 and $3.25 per thousand for coverage on commercial structures.
(c) Premiums shall be payable on an annual basis.
Section 9. Mobile Homes. Mobile homes shall be eligible for coverage provided they are anchored to the ground within the downs or are mounted upon a foundation and are connected to water, sewer, and electrical utilities.
Section 10. Structures and Areas to be Excluded. Structures for which construction begins in known subsidence areas after the effective date of these regulations are excluded from the Mine Subsidence Insurance Program, unless:
(a) The property owner can produce evidence that there is a reduced risk that the structure will sustain a loss due to mine subsidence; or
(b) Structures are constructed to tolerate the anticipated effects of subsidence.
(a) The insured may cancel coverage by providing the Administrator a thirty day written notice.
(b) The Administrator after providing an insured thirty days written notice may cancel or refuse to renew coverage under one or more of the following conditions:
(i) Misrepresentation, concealment or fraud: any material fact or circumstance which a person intentionally conceals or misrepresents, either in an effort to obtain insurance coverage or as a result of a loss.
(ii) Exhaustion of the coverage amount appearing on the certificate of insurance.
(iii) Exhaustion of the total amount of funds available to the mine subsidence insurance program.
(iv) Refusal to permit re-inspection of an insured structure.
(c) A policy shall be cancelled if the full renewal premium is not paid within thirty days of the premium due date as it appears on the renewal premium notice.
(d) Policies shall be automatically cancelled if the aggregate becomes exhausted. Losses that have been reported will be settled on a pro-rata basis.
(e) Policies shall be automatically cancelled if coverage limits have been exhausted as established in Section 6.
(f) Any refund of premium due an insured upon cancellation shall be paid on a pro-rata basis.
(g) Notice of a refusal to renew shall be furnished the insured person by mail at least thirty days prior to the renewal date.
Section 12. Limit of Liability. The liability of the State of Wyoming is limited to the amount of funds available for the Mine Subsidence Insurance Program.