Introduced Version






HOUSE BILL No. 1178

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 27-2-15; IC 34-30-2-111.

Synopsis: Insurance proceeds set aside. Applies, to any municipality or county that adopts an unsafe building law ordinance, the requirement for insurance proceeds to be set aside to pay certain expenses incurred by the municipality or county with respect to an unsafe building damaged by fire or explosion. Makes conforming amendments. Repeals a definition no longer used in these provisions.

Effective: July 1, 2006.





McClain




    January 9, 2006, read first time and referred to Committee on Insurance.







Introduced

Second Regular Session 114th General Assembly (2006)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
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Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2005 Regular Session of the General Assembly.

HOUSE BILL No. 1178



    A BILL FOR AN ACT to amend the Indiana Code concerning insurance.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 27-2-15-4.3; (06)IN1178.1.1. -->     SECTION 1. IC 27-2-15-4.3 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 4.3. As used in this chapter, "local unit" refers to a:
        (1) municipality; or
        (2) county;
described in IC 36-7-9-1.

SOURCE: IC 27-2-15-5; (06)IN1178.1.2. -->     SECTION 2. IC 27-2-15-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 5. (a) If:
        (1) a fire or explosion damages a building or other structure located in a city; local unit; and
        (2) the enforcement authority of the city local unit certifies to an insurer that issued a policy covering the building or structure the amount of demolition or rehabilitation expenses that the city local unit anticipates incurring or has incurred under IC 36-7-9 in connection with the building or structure;
the insurer shall remit to the city local unit or the enforcement authority the amount determined under subsection (c).
    (b) To require the remittance of money under this section, an enforcement authority must:
        (1) provide the certification under subsection (a) within thirty (30) days after the fire or explosion that damages the building or structure; and
        (2) comply with subsection (c).
However, it is not necessary for the enforcement authority to provide the certification within thirty (30) days after the fire or explosion if the insurer fails to provide notice to the enforcement authority under section 4.5 of this chapter within ten (10) days after the fire or explosion.
    (c) The amount that must be remitted to the city local unit or the enforcement agency under subsection (a) is the lesser of:
        (1) fifteen percent (15%) of the available insurance proceeds, if any; or
        (2) an amount equal to the amount certified.
    (d) The amount remitted under this section shall be placed in an interest bearing escrow account to be administered by the enforcement authority and the city. local unit. The insured shall be notified by the enforcement authority of the actions taken under this section.
SOURCE: IC 27-2-15-6; (06)IN1178.1.3. -->     SECTION 3. IC 27-2-15-6 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 6. Upon a judgment being rendered under IC 36-7-9-13(c) or IC 36-7-9-13(d), the city local unit is entitled to the available insurance proceeds set aside to the extent of the costs set forth in IC 36-7-9-12. All claims by the city local unit against the available insurance proceeds must be made within one (1) year after the date of the fire or explosion or within one (1) year after the final outcome of a case or appeal initiated under IC 36-7-9, whichever is later. Proceeds in the escrow account that are not claimed in this manner shall be paid to the insured.
SOURCE: IC 27-2-15-9; (06)IN1178.1.4. -->     SECTION 4. IC 27-2-15-9 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 9. The state fire marshal, a deputy fire marshal, an enforcement authority, or an officer of a city local unit complying with this chapter or attempting in good faith to comply with this chapter is immune from civil and criminal liability in connection with actions taken under this chapter.
SOURCE: IC 34-30-2-111; (06)IN1178.1.5. -->     SECTION 5. IC 34-30-2-111 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 111. IC 27-2-15-9 (Concerning the state fire marshal, a deputy fire marshal, an enforcement authority, or an officer of a city local unit for compliance with the statute concerning the set aside of insurance proceeds in arson cases).
SOURCE: IC 27-2-15-2; (06)IN1178.1.6. -->     SECTION 6. IC 27-2-15-2 IS REPEALED [EFFECTIVE JULY 1, 2006].