West Virginia Code of State Rules › Agency 115 - Risk And Insurance Management › Title 115 - LEGISLATIVE RULES STATE BOARD OF RISK AND INSURANCE MANAGEMENT › Series 115-01 - Mine Subsidence Insurance › Appendix A

Current through Register Vol. XLI, No. 28, July 12, 2024
COAL MINE SUBSIDENCE COVERAGE PART FORM:
				  WVMS-1(DWELLING STRUCTURE) (Ed. 04-2016)
In consideration of an additional premium, the STRUCTURES are
				  insured against direct loss which occurs within the effective policy dates
				  caused by underground COAL MINE SUBSIDENCE for the limit of liability stated in
				  the policy declarations applicable to COAL MINE SUBSIDENCE insurance.
COAL MINE SUBSIDENCE means loss to a STRUCTURE caused by
				  lateral or vertical movement, including collapse which results therefrom, of
				  STRUCTURES from collapse of man-made underground coal mine.
PROPERTY COVERED. This coverage applies to:
STRUCTURE, meaning any dwelling building or fixture
				  permanently affixed to realty located in West Virginia, including:
(1) Cost of excavations, grading or filling, and
(2) Basements, footings, foundations, septic systems,
				  and
(3) Underground pipes directly servicing the
				  STRUCTURE.
PROPERTY NOT COVERED. This coverage does not apply to the
				  following:
(1) Driveways, sidewalks, parking lots, land, and
(2) Trees, plants, crops or agricultural field drainage
				  tile.
LIMIT OF LIABILITY. The limit of liability for loss under
				  this coverage part shall not exceed the smallest of the following amounts (1),
				  (2), (3), (4) or (5):
(1) The Limit of Liability stated in the policy declarations
				  applicable to COAL MINE SUBSIDENCE INSURANCE;
(2) The replacement cost of the STRUCTURE or any part thereof
				  identical with such STRUCTURE on the same premises and the same occupancy and
				  use,
(3) The amount actually and necessarily expended in repairing
				  or replacing said STRUCTURE or any part thereof intended for the same occupancy
				  and use,
(4) The amount of fire insurance on die STRUCTURE, or
(5) The amount available in the West Virginia Mme Subsidence
				  Insurance Fund to reimburse die company.
SUPPLEMENTAL COVERAGE. The insured may apply up to 10% of the
				  amount of COAL MINE SUBSIDENCE insurance applicable to the dwellings covered
				  under this policy to cover loss to buildings located on the premises used
				  exclusively for private purposes, provided however, that structures rented or
				  leased to other than a tenant and structures used in whole or in part for
				  business purposes are excluded.
PERILS NOT INSURED AGAINST. The insurance afforded by this
				  coverage part does not insure against loss caused by:
(1) Earthquake, landslide, volcanic eruption, collapse of
				  storm and sewer drains and rapid transit tunnels or earth movement other than
				  underground COAL KLINE SUBSIDENCE,
(2) Any ensuing loss covered by die policy to which this
				  coverage part is attached.
DEDUCTIBLE. The following deductible provisions apply:
(1) The sum of $250 shall be deducted from each loss
				  separately occurring to the STRUCTURES insured.
(2) No other deductible provision contained in the policy to
				  which this coverage part is attached applies to loss caused by COAL MINE
				  SUBSIDENCE.
ARBITRATION PROVISION.
(1) In the event that the Insured and the Company, through
				  the West Virginia Board of Risk and Insurance Management (hereinafter BRIM), as
				  called for by statute, are unable to reach agreement as to: (1) whether die
				  insured STRUCTURE has sustained damage, m total and/or in part, during the
				  effective policy dates, due to COAL MINE SUBSIDENCE, and/or (2) the cost of
				  repair of COAL MINE SUBSIDENCE damage to die insured STRUCTURE, and/or (3) the
				  method of repair of COAL MINE SUBSIDENCE damage to the insured structure,
				  and/or (4) die materials necessary to effect repair of COAL MINE SUBSIDENCE
				  damage to the insured STRUCTURE, dien either the Insured or BRIM may request
				  that such issues(s) m dispute will be submitted to binding arbitration.
(2) A request for binding arbidation shall be made in writing
				  and dispatched to the other party via certified mail, return receipt requested.
				  At such time as die parties have mutually indicated their written consent to
				  binding arbitration of the issue(s) in dispute, the arbitration process shall
				  thereby commence as provided for herein.
(3) If the Insured and BRIM mutually consent to binding
				  arbidation, then both the Insured and BRIM shall agree to submit to the
				  findings and decision of the QUALIFIED ARBITRATOR or QUALIFIED ARBITRATION
				  PANEL. Any award in an arbitration initiated under this clause shall be limited
				  to monetary damages for COAL MINE SUBSIDENCE in an amount not to exceed two
				  hundred thousand dollars ($200,000) dollars per insured STRUCTURE or an amount
				  not to exceed the LIMIT OF LIABILITY as declared for COAL MINE SUBSIDENCE
				  insurance coverage on the Policy Declarations, whichever is less. In no event
				  can die QUALIFIED ARBITRATOR or QUALIFIED ARBITRATION PANEL award punitive
				  damages, attorney fees, injunctive relief, consequential damages, incidental
				  damages, and/or any other types or sorts of damages other than monetary damages
				  for COAL MINE SUBSIDENCE to the insured structure. Moreover, each party shall
				  bear its own costs and expenses and an equal share of the ADMINISTRATIVE FEES
				  of arbitration, except that if the Insured is the prevailing party in the
				  arbitration BRIM agrees to pay all of the ADMINISTRATIVE FEES of the
				  arbitration, however in no circumstance shall BRIM pay the expenses, legal
				  fees, or expert fees of the Insured. ADMINISTRATIVE FEES shall mean only those
				  fees charged by the QUALIFIED ARBITRATOR or QUALIFIED ARBITRATION PANEL
				  according to the fee schedule as mutually agreed to m writing by the parties at
				  the time the QUALIFIED ARBITRATOR or QUALIFIED ARBITRATION PANEL is
				  selected.
(4) Judgment upon the award rendered by the ARBITRATOR or
				  QUALIFIED ARBITRATION PANEL shall be final and not appealable, but, if
				  necessary, may be entered by the Circuit Court of Kanawha County, West Virginia
				  as provided herein.
(5) Selection of an Arbitrator
(a) Within ten (10) days of their mutual written consent to
				  binding arbitration, the Insured and BRIM shall select a QUALIFIED ARBITRATOR
				  by mutual agreement to resolve the issue(s) in controversy between die parties.
				  Said QUALIFIED ARBITRATOR shall be a professional registered engineer who can
				  produce evidence of at least five (5) years experience in investigating and
				  determining the existence of subsidence caused by underground coal mines, and
				  if requested by mutual agreement of the parties, shall also be qualified to de
				  term me the cost of adequate repairs to structures damaged by COAL MINE
				  SUBSIDENCE.
(b) If the parties are unable to agree upon a single
				  QUALIFIED ARBITRATOR, dien within thirty (30) days after the mutual written
				  consent to binding arbitration, each party shall select one (1) QUALIFIED
				  ARBITRATOR and the two (2) selected shall select a third QUALIFIED ARBITRATOR
				  within ten (10) days of their appointment. Those three (3) QUALIFIED
				  ARBITRATORS shall be hereinafter referred to as the QUALIFIED ARBITRATION PANEL
				  and will resolve die issue(s) m controversy between the parties.
(c) Prior to the commencement of hearings, each of the
				  QUALIFIED ARBITRALOR(S) appointed shall provide an oath or undertaking of
				  impartiality.
(6) Applicable law
This arbitration agreement shall be governed by the laws of
				  the state of West Virginia. Furthermore, die parties hereto consent to the
				  personal jurisdiction and venue of the Circuit Court of Kanawha County, West
				  Virginia and further consent that any process, notice of motion, or other
				  application to die court or a judge thereof may be served outside the State of
				  West Virginia by registered or certified mail or by personal service, provided
				  that a reasonable time for appearance is allowed.
(7) Arbitration Mechanism
(a) Thirty (30) days after selection of a QUALIFIED
				  ARBITRATOR or a QUALIFIED ARBITRATION PANEL, both the Insured and BRIM shall
				  make written submissions to the QUALIFIED ARBITRATOR or a QUALIFIED ARBITRATION
				  PANEL in which die respective party presents the facts of die case, with a copy
				  to be provided to the other party. These written submissions may be made by the
				  party or die party's designated representative.
(b) Upon receipt of these materials, the QUALIFIED ARBITRATOR
				  or QUALIFIED ARBITRATION PANEL may request additional materials from either
				  party. Any request for additional materials shall be made within thirty (30)
				  days from the date the written submission, required by paragraph (7)(a), was
				  made.
(c) After due consideration of the facts, as presented by the
				  parties, the ARBITRATOR or QUALIFIED ARBITRATION PANEL, by majority opinion,
				  shall issue a written decision with regard to all of the issues presented by
				  the parties. Upon receipt of the written decision, the parties shall have
				  thirty (30) days to resolve the claim in accordance with the decision.
(8) Duration of Arbitration
The award of the ARBITRATOR or QUALIFIED ARBITRATION PANEL
				  shall be made within nine (9) months of the filing of the notice of intention
				  to arbitrate (demand), and each QUALIFIED ARBITRATOR shall agree to comply with
				  this schedule before accepting appointment. However, this time limit may be
				  extended by agreement of the parties.
OTHER PROVISIONS.
(1) In file event of loss to any STRUCTURE insured by this
				  coverage part in excess of the deductible amount, this company shall be liable
				  for no greater proportion of such excess than the amount provided by this COAL
				  MINE SUBSIDENCE coverage part shall bear to all COAL MINE SUBSIDENCE insurance,
				  whether collectible or not.
(2) The insurance afforded by this coverage part shall not be
				  subject to the provisions of West Virginia Code Section
				  33-17-9, commonly known as the
				  West Virginia Valued Policy Law. It is further agreed that no co-insurance
				  clause shall be applicable to this coverage part.
(3) All claims shall be paid within 120 days after Proof of
				  Loss is presented to the company unless otherwise agreed by the company and the
				  insured.
(4) The insurance afforded by this coverage part shall become
				  effective no earlier than 30 calendar days after the application date.
(5) Acceptance by the Insured of payment from the Company
				  shall be proof of the Insured's agreement with the Company and BRIM as to the
				  extent and scope of any and all covered damages under this coverage part, and
				  the repair thereof; further, any and all such repairs to the insured STRUCTURE
				  required by the Company and BRIM must be completed not later than 12 months
				  after issuance of the settlement check by the Company to the insured. Failure
				  by the insured to comply with this policy condition shall result in the right
				  of the Company or BRIM to deny any further claim for damage to the insured
				  structure caused directly or indirectly by such failure to complete the agreed
				  on repairs.
(6) In die event of any payment under this policy, the
				  Company or BRIM shall be subrogated to all of the Insured's rights to recovery
				  therefore against any person or organization and the Insured shall execute and
				  deliver instruments and papers and do whatever else is necessary to secure such
				  rights. The Insured shall do notiiing after loss to impair or prejudice such
				  rights. At the request of the Company or BRIM, the Insured will bring suit or
				  transfer those rights to the Company or BRIM and help the Company or BRIM
				  enforce them.
(7) Except as modified by this coverage part, this insurance
				  is subject to all the provisions of the policy to which the coverage part is
				  attached except:
(a) Coverage for additional living expense;
(b) Coverage provided under any extensions of
				  coverage;
(c) Coverage for indirect or consequential
				  loss.