NEW PREMIUM RATES FOR THE MINE SUBSIDENCE INSURANCE PROGRAM

COMMONWEALTH OF KENTUCKY
OFFICE OF INSURANCE
Frankfort, Kentucky

BULLETIN 2006-02

NEW PREMIUM RATES FOR THE MINE SUBSIDENCE INSURANCE PROGRAM

      May 8, 2006

THIS BULLETIN IS FOR INFORMATIONAL PURPOSES ONLY.  IT DOES NOT AMEND OR INTERPRET PROVISIONS OF THE KENTUCKY REVISED STATUTES OR THE KENTUCKY ADMINISTRATIVE REGULATIONS.

Pursuant to KRS 304.44-020(4), the Administrator of the Mine Subsidence Insurance Program has established new premium rates for mine subsidence insurance which shall become effective July 1, 2006.    The new rates are set forth in this Bulletin and shall be charged for the appropriate amount of coverage.   

The new rates listed below represent an overall decrease of approximately 33% to mine subsidence premiums in Kentucky.  The majority of policyholders will recognize a decrease in their mine subsidence premium of at least 25%.  Any questions should be addressed to the Division of State Risk, (502) 564-6094.

COMMONWEALTH OF KENTUCKY
COAL MINE SUBSIDENCE RATES

 
AMOUNT OF COAL MINE SUSIDENCE           PREMIUM DWELLING                    PREMIUM NON-DWELLING

INSURANCE ON THE                                         STRUCTURE                                    STRUCTURE
STRUCTURE

 Up to   $50,000                                                   $10.00                                                 $15.00 
  $50,001 to  $60,000                                         $12.00                                                 $17.00
  $60,001 to $70,000                                          $14.00                                                 $19.00
  $70,001 to $80,000                                          $16.00                                                 $21.00
  $80,001 to  $90,000                                         $18.00                                                 $23.00
  $90,001 to $100,000                                        $20.00                                                 $25.00

 
Notes: 

(1)   A non-dwelling structure is defined for rating purposes as a
building that is not principally used for residential purposes or houses more than four family units.

(2) $100,000 is the maximum total insured value, per structure, reinsured by the Kentucky Coal Mine Subsidence Fund.

FOR COMPANY USE ONLY – AMOUNTS ABOVE $100,000

The additional premium rates for dwellings and non-dwellings with a total insured value over $100,000 are as follows:

  (1) Dwellings – for each $10,000 above $100,000 $2.00
 
  (2) Non-dwelling – for each $10,000 above $100,000 $2.00

Effective: 07/01/2006

__/S/ R. Glenn Jennings                             
R. Glenn Jennings, Executive Director
Kentucky Office of Insurance

___05/08/2006                                           
Date