Introduced Version






HOUSE BILL No. 1192

_____


DIGEST OF INTRODUCED BILL



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

Synopsis: Notice of insurance after fire or explosion. Requires certain insurers to: (1) notify enforcement authorities in a municipality concerning the existence of coverage for a building or structure that is located in the municipality and damaged by fire or explosion; and (2) provide for a set aside of insurance proceeds payable with regard to the building or structure. (Currently, the law applies to certain cities.) Revises current language to clarify the process for notices. Repeals a definition rendered unnecessary by the act.

Effective: July 1, 2010.





Pelath




    January 7, 2010, read first time and referred to Committee on Insurance.







Introduced

Second Regular Session 116th General Assembly (2010)


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.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2009 Regular and Special Sessions of the General Assembly.

HOUSE BILL No. 1192



    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 27-2-15-4.2; (10)IN1192.1.1. -->     SECTION 1. IC 27-2-15-4.2 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 4.2. As used in this chapter, "municipality" has the meaning set forth in IC 36-1-2-11.
SOURCE: IC 27-2-15-4.5; (10)IN1192.1.2. -->     SECTION 2. IC 27-2-15-4.5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 4.5. (a) As used in this section, "city" refers to a city having a population of more than thirty-five thousand (35,000) that is located in a county having a population of more than four hundred thousand (400,000) but less than seven hundred thousand (700,000).
    (b) (a) An insurer that:
         (1) issued an insurance policy:
             (A) covering a building or other structure that is:
                (1) (i) located in a city; municipality; and
                (2) (ii) damaged by a fire or explosion; and
            (B) that is in effect at the time of the fire or explosion; and
        (2) receives a request for notice about the existence of the

insurance policy:
            (A) from the enforcement authority of the municipality and
            (B) within twenty (20) days after the damage occurs;

shall, within ten (10) days after notice is received under subdivision (2), notify the enforcement authority of the city municipality about the existence of the policy. However, an insurer is not required to notify the enforcement authority under this section if the policy issued by the insurer is not in effect at the time of the fire or explosion that damages the building or structure.
    (c) The insurer shall provide the notice required under this section if the enforcement authority makes a request for the notice within twenty (20) days after the damage occurs.
    (d) (b) The notice required by this section must:
        (1) be in writing;
        (2) identify the insurer and state the insurer's address;
        (3) identify the building or structure and state the location of the building or structure; and
        (4) disclose the nature and extent of the coverage of the building or structure provided by the policy.
    (e) An insurer shall provide notice to the enforcement authority under this section within ten (10) days after the insurer is notified under subsection (c) of the damaging of the building or structure by fire or explosion.
    (f) (c) The commissioner may take action under IC 27-1-3-10 and IC 27-1-3-19 against an insurer that violates this section.

SOURCE: IC 27-2-15-5; (10)IN1192.1.3. -->     SECTION 3. IC 27-2-15-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 5. (a) If:
        (1) a fire or explosion damages a building or other structure located in a city; municipality; and
        (2) the enforcement authority of the city municipality certifies to an insurer that issued a policy covering the building or structure the amount of demolition or rehabilitation expenses that the city municipality anticipates incurring or has incurred under IC 36-7-9 in connection with the building or structure;
the insurer shall remit to the city municipality 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 municipality 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. municipality. The insured shall be notified by the enforcement authority of the actions taken under this section.
SOURCE: IC 27-2-15-6; (10)IN1192.1.4. -->     SECTION 4. IC 27-2-15-6 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 6. Upon a judgment being rendered under IC 36-7-9-13(c) or IC 36-7-9-13(d), the city municipality 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 municipality 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; (10)IN1192.1.5. -->     SECTION 5. IC 27-2-15-9 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 9. The state fire marshal, a deputy fire marshal, an enforcement authority, or an officer of a city municipality 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; (10)IN1192.1.6. -->     SECTION 6. IC 34-30-2-111 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: 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 municipality for compliance with the statute concerning the set aside of insurance proceeds in arson cases).
SOURCE: ; (10)IN1192.1.7. -->     SECTION 7. [EFFECTIVE JULY 1, 2010] IC 27-2-15-2 IS REPEALED.
SOURCE: ; (10)IN1192.1.8. -->     SECTION 8. [EFFECTIVE JULY 1, 2010] (a) IC 27-2-15, as amended by this act, applies to damage occurring by fire or explosion after June 30, 2010.
    (b) This SECTION expires July 1, 2015.