Coal Mine Subsidence: Several States May Not Meet Federal Insurance Program Objectives
RCED-91-140
Published: May 28, 1991. Publicly Released: Jun 10, 1991.
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Highlights
Pursuant to a congressional request, GAO examined: (1) the Department of the Interior's Office of Surface Mining Reclamation and Enforcement's (OSMRE) efforts to implement the federally assisted coal mine subsidence insurance program; and (2) six states' efforts to develop self-sustaining insurance programs.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of the Interior | To ensure that states implement coal mine subsidence insurance programs that have a reasonable probability of achieving self-sustainability, the Secretary of the Interior should direct the Director, OSMRE, to follow the requirements of the OSMRE Financial Assistance Manual as it manages this grant program. |
Interior stated that it continues to follow its financial assistance manual.
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| Office of Surface Mining Reclamation and Enforcement | As part of OSMRE enhanced oversight, the Director, OSMRE, should: (1) monitor the states' progress toward achieving self-sustaining programs; (2) encourage those actions that will enhance their prospects of achieving self-sustainability; and (3) as a last resort, terminate a state's grant if it becomes clear that a self-sustaining program is not obtainable. In particular, the Director should encourage states to automatically include subsidence insurance coverage in all property owner policies and inform mortgage lenders of the availability of the insurance. |
Interior notified Ohio and Indiana that their programs might be terminated. Subsequently, Ohio passed legislation requiring subsidence insurance and Indiana passed legislation encouraging participation. Both states completed actuarial studies which are being reviewed to see if programs are self-sustaining.
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state relationsFinancial managementGrant monitoringGrants to statesInsurance companiesInsurance regulationLiability insuranceMining industryProperty damagesState-administered programs