Bulletin 2024-07 — New Premium Rates for the Mine Subsidence Insurance Program
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This bulletin sets the new premium rates, reinsured value limits, and related administrative requirements for the Kentucky Mine Subsidence Insurance Program and applies to all insurers and licensees doing business in Kentucky that provide mine subsidence coverage.
The Department amends the premium rates previously issued in Bulletin 2024-05 and publishes rounded rate tables to be effective January 1, 2025.
The additional living expense limit is increased to $50,000.
A new maximum total reinsured limit of $550,000 is established, including $500,000 for structures and $50,000 for additional living expense.
Mine Subsidence Premiums and Limits
Mine subsidence premium and limit criteria
Premiums and limits are established by calculated premium tables based on insured value bands and differ for residential and commercial structures; outbuilding rates apply to farm dwellings/outbuildings. The total reinsured limit and allocation between structures and additional living expense are specified below.
Residential and Commercial rate tables
- Apply the Residential calculated premium column for structures designated residential (see published bands and premiums).
- Apply the Commercial calculated premium column for structures defined as commercial (see published bands and premiums).
- A commercial structure is defined for rating purposes as a building that is not principally used for residential purposes or a house of more than four family units.
Representative insured value bands and premiums
- Up to $50,000: Residential = 16.00; Commercial = 21.00.
- $120,001 to $130,000: Residential = 32.00; Commercial = 37.00.
- $370,001 to $380,000: Residential = 48.00; Commercial = 53.00.
- $380,001 to $390,000: Residential = 48.00; Commercial = 53.00.
- $480,001 to $490,000: Residential = 50.00; Commercial = 55.00.
- $490,001 to $500,000: Residential = 50.00; Commercial = 55.00.
Coverage limits and premium inclusion
- Maximum total reinsured limit: $550,000 (this is the maximum amount reinsured by the Kentucky Mine Subsidence Insurance Fund).
- Maximum reinsured limit for structures: $500,000.
- Maximum reinsured limit for Additional Living Expense (ALE): $50,000; ALE premium is included in the premium for residential structures.
Maximum Reinsured Amounts
Required Re-execution and Implementation Timing
Execute new reinsurance agreement by Jan 1, 2025
All insurers providing mine subsidence coverage must execute the new reinsurance agreement attached to this bulletin by January 1, 2025; existing policies in effect on January 1, 2025 may remain at their current rate and coverage until renewal when the new reinsured value limits and corresponding premium rates apply.
- Re-execute the Department’s attached reinsurance agreement reflecting the changed total insured value eligible for reinsurance by Jan 1, 2025.
- Implement new reinsured value limits and premium rates at policy renewal; do not need to adjust in-force policies until their renewal date.
Definitions for Rating Purposes
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