§ 9-1903.  Required Establishment of Fire Insurance Escrow Accounts.
   (1)   For every Covered Claim as defined in Section 9-1901, the Insuring Agent or Agents shall transfer to the Commissioner from the insurance proceeds either:
      (a)   two thousand dollars ($2,000) for each fifteen thousand dollars ($15,000) of a claim, or two thousand dollars ($2,000) if the claim is less than fifteen thousand dollars ($15,000), or such other amount as may be provided by Section 508 of The Insurance Company Law of 1921, as amended; or
      (b)   If at the time of a loss report of the claim, the named insured has submitted a contractor's signed estimate of the costs of removing, repairing or securing the building or other structure in an amount less than the amount calculated under the formula set forth in subsection 9-1903(1)(a), then the amount specified in such estimate. Any such estimate must include the name, address and City business income and receipts tax account number of the contractor. 1120
   (2)   Whenever an Insuring Agent transfers proceeds to the City under subsection 9-1903(1), it shall provide the Commissioner with the following information:
      (a)   The name and address of the named insured;
      (b)   The address of the insured property;
      (c)   The date of loss;
      (d)   The amount of the loss agreed to between the named insured and the Insuring Agent;
      (e)   The aggregate limits of liability for all fire insurance policies issued by the Insuring Agent covering the property; and
      (f)   A copy of the certificate issued by the City Treasurer to the named insured pursuant to Section 9-1905.
   (3)   If there is more than one (1) Insuring Agent for a Covered Claim, then the transfer of insurance proceeds required by subsection 9-1903(1) shall be on a pro rata basis by all Insuring Agents.
   (4)   Upon receipt of such proceeds, the Commissioner shall:
      (a)   Deposit such proceeds with the City Treasurer, who shall place such proceeds, together with any other proceeds received pursuant to this Chapter, in a separate fund to be used solely in accordance with Section 9-1904;
      (b)   Certify to the named insured that the proceeds have been received by the City, and notify the named insured that the procedures set forth in Section 9-1904 will be followed.

 

Notes

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   Amended, Bill No. 110758 (approved December 21, 2011), effective May 1, 2012.