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§ 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. 1191
   (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

1191
   Amended, Bill No. 110758 (approved December 21, 2011), effective May 1, 2012.
§ 9-1904. Administration of Fire Insurance Escrow Accounts.
   (1)   After the transfer of proceeds under subsection 9-1903(1)(a), and if the City has not commenced to remove, repair, or secure the building or other structure, then the named insured may submit to the Commissioner a contractor's signed estimate of the costs of removing, repairing or securing the building or other structure, and the Commissioner shall then return to the named insured the amount of proceeds transferred to the City in excess of such estimate. Any such estimate must include the name, address and City business income and receipts tax account number of the contractor. 1192
   (2)   When repairs, removal or securing of the building or other structure have been completed in accordance with all applicable laws and regulations, and when proof of such completion has been received by and in form satisfactory to the Commissioner, then the transferred proceeds shall be returned to the name insured, provided the City has not incurred any costs for repairs, removal or securing of the building or other structure. If the City has incurred such costs, including, but not limited to, any engineering, legal, police or administrative costs incurred in connection with such removal, repair or firefighting costs incurred as a result of the building or other structure not being secured in a timely manner as ordered by the Department, then such costs shall be paid from the transferred proceeds, and if any transferred proceeds remain, the City shall return such remainder to the named insured.

 

Notes

1192
   Amended, Bill No. 110758 (approved December 21, 2011), effective May 1, 2012.
§ 9-1905. Municipal Certificate Required Prior to Payment of Fire Loss Claims. 1193
   (1)   No Insuring Agent shall pay a claim of a named insured for fire damage to a structure located within the City if the amount recoverable for the fire loss to the structure under all policies exceeds seven thousand five hundred dollars ($7,500) unless the Insuring Agent is furnished with a certificate issued pursuant to subsection 9-1905(2), and unless the Insuring Agent complies with Section 9-1903.
   (2)   The City Treasurer (or designee) shall, upon the written request of the named insured specifying the tax description of the property, name and address of the Insuring Agent and the date agreed upon by the Insuring Agent and the named insured as the date of the receipt of a loss report of the claim, furnish the Insuring Agent either of the following within fourteen (14) working days of the request:
      (a)   a certificate or, at the City Treasurer's discretion, a verbal notification which shall be confirmed in writing by the Insuring Agent, to the effect that, as of the date specified in the request, there are no delinquent taxes, assessments, penalties or user charges against the property and that, as of the date of the certificate or verbal notification, no City agency has certified to the City Treasurer any amount as total costs incurred by such agency for the removal, repair or securing of a building or other structure on the property; or
      (b)   a certificate and bill showing the amount of delinquent taxes, assessments, penalties and user charges against the property as of the date specified in the request that have not been paid as of the date of the certificate and also showing, as of the date of the certificate, the amount of the total costs, if any, certified to the City Treasurer that have been incurred by any City agency for the removal, repair or securing of a building or other structure on the property.
   (3)   Upon the receipt of a certificate and bill issued pursuant to subsection 9-1905(2)(b), the Insuring Agent shall return the bill to the City Treasurer and transfer to the City Treasurer an amount from the insurance proceeds necessary to pay the taxes, assessments, penalties, charges and costs as shown on the bill. The City Treasurer shall receive the amount and see to it that the appropriate City agencies apply or credit it to the payment of the items shown in the bill.

 

Notes

1193
   Added and later Sections renumbered, Bill No. 1055 (approved June 28, 1995), 1995 Ordinances, p. 770. Section 3 of the Ordinance provides that it shall be effective as of the effective date of Act No. 93 of 1994, which amended Section 508 of the Insurance Company Law of 1921. Act No. 93 of 1994 became effective on January 11, 1995.
§ 9-1906. General.
   (1)   Nothing in this Chapter shall be construed to limit the ability of the City to recover any deficiency, or to prohibit the City and the named insured from entering into any agreement that permits the transfers of funds to the named insured if some other reasonable disposition of the damaged property has been negotiated.
§ 9-1907. Penalties.
   (1)   The penalty for a violation of any provision of this Chapter or any regulations adopted pursuant to this Chapter is a fine not exceeding three hundred dollars ($300) per violation.