HomeMy Public PortalAbout2013-5 - INSURANCE PROCEEDS SET ASIDE PROGRAMORDINANCE NO. 2013-5
AN ORDINANCE AUTHORIZING AND DIRECTING SUBMISSION OF
A WRITTEN REQUEST TO PARTICIPATE IN
THE INDIANA DEPARTMENT OF INSURANCE'S
INSURANCE PROCEEDS SET ASIDE PROGRAM
WHEREAS, the State of Indiana, through the Indiana Department of Insurance
( "IDOI "), for many years, has administered the available insurance proceeds set aside
program. The program provides cities that specifically elect to be governed by the
applicable law, notice and certain protections in the event that insurance proceeds are
available due to damage to a building in their community caused by fire or explosion. At
the time of final settlement of an eligible insurance claim, participating cities are
provided notice of the settlement and an opportunity to respond to the insurance carrier.
In qualifying instances, the participating city can require a statutorily set percentage or
amount of the insurance proceeds to be paid to the city, to be held in escrow, and
potentially used for demolition, remediation, or other unsafe building expenses following
any necessary legal action. The law is designed to provide some level of protection to
cities from property owners who might choose to take any insurance proceeds and fail to
repair or clean up their damaged property;
WHEREAS, previously, the available insurance proceeds set aside program was
only applicable to a select group of larger cities. As of July 1, 2013, the program became
available to third class cities such as Greencastle. Next year, it will be expanded to
include towns. And, in 2015, it will cover all municipalities. There is a one -time
registration fee of $100.00 for the program. Given this relatively minimal cost, and in
light of the significant potential financial benefits, the City has determined that it would
be advantageous to opt into the available insurance proceeds set aside program; and
WHEREAS, the purpose and intent of this ordinance is to authorize and direct the
City's written request to participate in IDOI's insurance proceeds set aside program, and
to direct payment of the associated registration fee.
NOW, THEREFORE, BE IT ORDAINED by the Common Council of the City of
Greencastle, Indiana as follows:
Section 1. The City of Greencastle, Indiana elects to be governed by Indiana Code § 27-
2-15 et seq. and the Mayor is hereby authorized to and directed to submit a written
request to IDOI, in the same or similar format to the written request letter that is attached
hereto, reflecting the City's election to participate in the available insurance proceeds set
aside program.
Section 2. The Clerk- Treasurer is hereby directed to make payment to IDOI for the one-
time $100.00 available insurance proceeds set aside program registration fee, as is
required by Indiana Code § 27- 2- 15- 4.4(d).
This ordinance shall take full force and effect upon passage.
PASSED AND ADOPTED by the Common Council of the City of Greencastle,
Indiana this 10th day of September, 2013.
Adam Cohen
A(1/1-(
Mdrk N. Hammer
Terry Sn/t
ATTEST:
Dunbar, Clerk- Treasurer
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T sie S. Bingham
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Phylf RokickV
Approved and signed by me this 10th day of September, 2013 at
o'clock .m.
Sue Murray, Mayor