IC 27-2-15
    Chapter 15. Available Insurance Proceeds Set Aside

IC 27-2-15-1
"Available insurance proceeds" defined
    Sec. 1. As used in this chapter, "available insurance proceeds"means the proceeds payable under an insurance policy based upon aclaim for damage to or loss of a building or other structure caused byfire or explosion, minus proceeds paid to:
        (1) the insured for emergency living expenses;
        (2) take emergency action necessary to secure the premises;
        (3) prevent further damage to the premises; or
        (4) a lienholder or mortgagee who is not the target of aninvestigation by an authorized agency (as defined inIC 27-2-13-1).
As added by P.L.247-1989, SEC.2.

IC 27-2-15-2
"City" defined
    Sec. 2. As used in this chapter, "city" refers to a first class orsecond class city, as classified under IC 36-4-1-1.
As added by P.L.247-1989, SEC.2.

IC 27-2-15-3
"Enforcement authority" defined
    Sec. 3. As used in this chapter, "enforcement authority" has themeaning set forth in IC 36-7-9-2.
As added by P.L.247-1989, SEC.2.

IC 27-2-15-4
"Insurer" defined
    Sec. 4. As used in this chapter, "insurer" means a fire and marineinsurance company, as defined in IC 27-1-2-3(u).
As added by P.L.247-1989, SEC.2.

IC 27-2-15-4.5
Notice to enforcement authority of existence of policy
    Sec. 4.5. (a) As used in this section, "city" refers to a city havinga population of more than thirty-five thousand (35,000) that islocated in a county having a population of more than four hundredthousand (400,000) but less than seven hundred thousand (700,000).
    (b) An insurer that issued an insurance policy covering a buildingor other structure that is:
        (1) located in a city; and
        (2) damaged by a fire or explosion;
shall notify the enforcement authority of the city about the existenceof the policy. However, an insurer is not required to notify theenforcement authority under this section if the policy issued by theinsurer is not in effect at the time of the fire or explosion thatdamages the building or structure.    (c) The insurer shall provide the notice required under this sectionif the enforcement authority makes a request for the notice withintwenty (20) days after the damage occurs.
    (d) 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 thebuilding or structure; and
        (4) disclose the nature and extent of the coverage of thebuilding or structure provided by the policy.
    (e) An insurer shall provide notice to the enforcement authorityunder this section within ten (10) days after the insurer is notifiedunder subsection (c) of the damaging of the building or structure byfire or explosion.
    (f) The commissioner may take action under IC 27-1-3-10 andIC 27-1-3-19 against an insurer that violates this section.
As added by P.L.123-1992, SEC.1.

IC 27-2-15-5
Set aside of insurance proceeds; amount
    Sec. 5. (a) If:
        (1) a fire or explosion damages a building or other structurelocated in a city; and
        (2) the enforcement authority of the city certifies to an insurerthat issued a policy covering the building or structure theamount of demolition or rehabilitation expenses that the cityanticipates incurring or has incurred under IC 36-7-9 inconnection with the building or structure;
the insurer shall remit to the city or the enforcement authority theamount determined under subsection (c).
    (b) To require the remittance of money under this section, anenforcement authority must:
        (1) provide the certification under subsection (a) within thirty(30) days after the fire or explosion that damages the buildingor structure; and
        (2) comply with subsection (c).
However, it is not necessary for the enforcement authority to providethe certification within thirty (30) days after the fire or explosion ifthe insurer fails to provide notice to the enforcement authority undersection 4.5 of this chapter within ten (10) days after the fire orexplosion.
    (c) The amount that must be remitted to the city or theenforcement 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 aninterest bearing escrow account to be administered by theenforcement authority and the city. The insured shall be notified bythe enforcement authority of the actions taken under this section.As added by P.L.247-1989, SEC.2. Amended by P.L.123-1992,SEC.2.

IC 27-2-15-6
Claims against set aside
    Sec. 6. Upon a judgment being rendered under IC 36-7-9-13(c) orIC 36-7-9-13(d), the city is entitled to the available insuranceproceeds set aside to the extent of the costs set forth in IC 36-7-9-12.All claims by the city against the available insurance proceeds mustbe made within one (1) year after the date of the fire or explosion orwithin one (1) year after the final outcome of a case or appealinitiated under IC 36-7-9, whichever is later. Proceeds in the escrowaccount that are not claimed in this manner shall be paid to theinsured.
As added by P.L.247-1989, SEC.2.

IC 27-2-15-7
Immunity of insurers
    Sec. 7. An insurer complying with this chapter or attempting ingood faith to comply with this chapter is immune from civil andcriminal liability in connection with actions taken under this chapter,and those actions, including withholding payment of any insuranceproceeds under this chapter or releasing or disclosing anyinformation under this chapter, may not be considered to violateIC 27-4-1.
As added by P.L.247-1989, SEC.2.

IC 27-2-15-8
Satisfaction of contractual liability
    Sec. 8. Insurance proceeds set aside in an escrow account undersection 5 of this chapter shall be considered as having been paid tothe insured in satisfaction of any contractual liability under thepolicy.
As added by P.L.247-1989, SEC.2.

IC 27-2-15-9
Immunity of public officials
    Sec. 9. The state fire marshal, a deputy fire marshal, anenforcement authority, or an officer of a city complying with thischapter or attempting in good faith to comply with this chapter isimmune from civil and criminal liability in connection with actionstaken under this chapter.
As added by P.L.247-1989, SEC.2.

IC 27-2-15-10
Rules
    Sec. 10. The insurance commissioner may adopt rules underIC 4-22-2 necessary to implement this chapter. These rules mustinclude a procedure for the administration of escrow accountsestablished under section 5 of this chapter, including the disposition

of any funds in the escrow account not claimed under section 6 ofthis chapter.
As added by P.L.247-1989, SEC.2.