Wyo. Code R. 020-0001-7
Abandoned Mine Reclamation Program
Chapter 7: Mine Subsidence Insurance Program
Effective Date: 06/29/2018 to Current
Rule Type: Current Rules & Regulations
Reference Number: 020.0001.7.06292018
(a) This chapter establishes rules and regulations for a program of insurance administered by the Abandoned Mine Land Division to insure structures in Wyoming from damage resulting from mine subsidence.
(b) These rules incorporate by reference the following rules and regulations, in effect as of September 6, 2016:
(i) Wyoming Department of Administration and Information, Director's Office, Chapter 2, Uniform Procedures, Fees, Costs, and Charges for Inspection, Copying, and Producing Public Records, available at https://rules.wyo.gov.
(c) These rules do not incorporate later amendments or editions of the incorporated matter.
(d) All incorporated matter is available for public inspection at the Department's Cheyenne office. Contact information for the Cheyenne Office may be obtained at http://deq.wyoming.gov or from (307) 777-7937.
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) The division and their consultants, using best engineering and professional judgment based on analysis of the potential impact, shall identify surrounding properties that may reasonably be at risk from subsidence damage due to AML mitigation work.
(b) Prior to initiating subsidence mitigation work, the division's contractor shall notify the owner of all property identified in (a) and offer to purchase subsidence insurance for the property for the duration of the project.
(c) If accepted, the property owner must allow the property to be inspected to establish baseline conditions and allow the property to be inspected at any reasonable time during the project.
(d) This offer will be made to protect the state from subsidence damage claims for the duration of the project.
(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 unlivable 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 10.
(ix) Loss to structures excluded under Section 11.
(x) Loss to structures that were not constructed according to local building codes in effect at the time the structure was built or placed into service.
(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. Failure by the property owner to allow an inspection of the structure or structures, both external and internal, will result in the division rejecting the property owner's request for insurance. Cost of the inspection shall be borne by the division.
(d) Insured structures shall be subject to reinspection. All reasonable attempts to notify the property owner shall be made prior to a reinspection. Cost of the reinspection shall be borne by the division.
(a) Premium rates may 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.
(d) Premiums shall be paid by the State of Wyoming or its contractors if the property has been identified, in accordance with Section 3 of this Chapter, as in an area that may reasonably be at risk from subsidence due to AML mitigation work.
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 or 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 or 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 $275,000.00 per loss.
(b) Structures shall not be insured for more than their estimated fair market value.
(c) Structures shall not be insured for less than 75 percent of estimated fair market value unless limited by (a) above.
(d) Each structure which occupies the realty may be separately insured at the rate established in Section 5 for an amount not to exceed their fair market value but not more than the amount in (a) above nor less than the amount in (c) above.
(a) Losses shall be reported to the Administrator within ninety days from the time loss occurs but no claims will be accepted after the date a policy has been canceled or terminated. 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 if requested by the insured, assist the insured in obtaining repair cost estimates and in completing the proof of loss.
(b) The authority and limits for settling losses after payment of the deductible shall be: (i) The Subsidence Insurance Program Manager with the concurrence of the Abandoned Mine Land Administrator up to $25,000. (ii) The Administrator with the concurrence of the Director, over $25,000 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.
Mobile homes shall be eligible for coverage provided they are anchored to the ground or are mounted upon a foundation and are connected to water, sewer, and electrical utilities and the home was installed according to local codes in effect at the time the structure was installed and/or constructed.
(a) The anchorage's capacity must prevent uplifting and overturning due to wind or seismic activity. Screw-in soil anchors are not considered a permanent anchorage. (b) The anchorage must be attached to a footing sufficiently sized to prevent overloading of the soil-bearing capacity and which also avoids soil settlement. The footing shall be reinforced concrete to be considered permanent. (c) The base of the footing must extend below the maximum frost penetration depth for the area. (d) The foundation must enclose a crawl space with a continuous wall (whether bearing or non-bearing) that separates the crawl space from the backfill, and prohibits vermin and water from entering the enclosed area. (e) The anchorage must have sufficient capacity in both the transverse and longitudinal directions to prevent sliding due to wind and/or seismic activity.
Structures for which construction begins in known subsidence areas after the effective date of the mine subsidence insurance program are excluded from the Mine Subsidence Insurance Program, unless:
(a) The structure has been constructed in accordance with local codes specific for subsidence prone areas; or (b) If there are no local codes specific for subsidence prone areas the property owner can produce evidence that:
(i) There is a reduced risk that the structure will sustain a loss due to mine subsidence; or
(ii) The 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) An individual policy shall be automatically cancelled if a single claim exhausts the coverage limits as established in Section 7.
(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.
The liability of the State of Wyoming is limited to the amount of funds available for the Mine Subsidence Insurance Program