§ 27-2-15-5 — Evidence of repair contract; set aside of insurance proceeds; amount in escrow

Indiana § 27-2-15-5

• Jurisdiction: Indiana
• Title 27: INSURANCE
• Art. 2: POWERS AND DUTIES OF INSURERS
• Ch. 15: Available Insurance Proceeds Set Aside

Text

(a) This section does not apply to damage or
loss to a building or structure described in section 4.5 of this chapter if:
(1) not more than fifteen (15) days after final settlement has
occurred concerning the building or structure, the named insured
files with the insurer evidence of a contract to repair the building
or structure; and
(2) upon receipt of the evidence of a contract to repair, the insurer
notifies the municipality that this section does not apply due to the
existence of the evidence.
(b) If:
(1) the requirements of subsection (a) are not met; and
(2) the enforcement authority of a municipality that receives
notice from an insurer under section 4.5(a) of this chapter certifies
to the insurer the amount of demolition or rehabilitation expenses
that the municipality anticipates incurring or has incurred under
IC 36-7-9 in connection with the building or structure;
the insurer shall remit to the municipality or the enforcement authority
the amount determined under subsection (d).
(c) To require the remittance of money under this section, an
enforcement authority must:
(1) provide the certification under subsection (b) within fifteen
(15) days after the enforcement authority receives notice under
section 4.5(a) of this chapter; and
(2) comply with subsection (d).
(d) The amount that must be remitted to the municipality or the
enforcement authority under subsection (b) is the lesser of:
(1) ten percent (10%) of the available insurance proceeds, if any;
(2) an amount equal to the amount certified; or
(3) the following:
(A) Seven thousand dollars ($7,000) for a residential building
or structure.
(B) Fifteen thousand dollars ($15,000) for a nonresidential
building or structure.
For purposes of this subsection, "a residential building or structure"
means real property consisting of not more than four (4) residential
units, one (1) of which is the principal place of residence of the named
insured.
(e) The amount remitted under this section shall be placed by the
enforcement authority in an interest bearing escrow account to be
administered by the enforcement authority and the municipality. The
insured shall be notified by the enforcement authority of the actions
taken under this section.

Legislative History

As added by P.L.247-1989, SEC.2. Amended by P.L.123-1992, SEC.2; P.L.238-2013, SEC.8.