Authorizing and Directing Submission of a Written Request to Participate in the Indiana Department of Insurance's Available Insurance Proceeds Set Aside Program

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ORDINANCE NO. AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA AUTHORIZING AND DIRECTING SUBMISSION OF A WRITTEN REQUEST TO PARTICIPATE IN THE INDIANA DEPARTMENT OF INSURANCE'S AVAILABLE INSURANCE PROCEEDS SET ASIDE PROGRAM STATEMENT OF PURPOSE AND INTENT The State of Indiana, through the Indiana Department of Insurance ( "ID01 "), administers the "available insurance proceeds set aside" program. For municipalities that specifically elect to be governed by the applicable law, this program provides them with notice and certain protections in the event that insurance proceeds are available due to damage caused by fire or explosion to a building in their community. At the time of the final settlement of an eligible claim, participating cities are given 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 protection to cities from property owners who might choose to take insurance proceeds and fail to repair or clean up their damaged property. The potential benefits from this program far outweigh the modest $100.00 registration fee to participate in the program. As a result, the City of South Bend has determined that it would be advantageous to opt into the available insurance proceeds set aside program. The purpose and intent of this ordinance is to confirm South Bend's election to be governed by Indiana Code § 27 -2 -15 et seq., and further to authorize and direct South Bend's participation in 1130I's available 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 SOUTH BEND, INDIANA as follows: Section I. Pursuant to Indiana Code § 27- 2- 15- 4.4(a)(1), the City of South Bend, Indiana elects to be governed by Indiana Code 27 -2 -15 et seq., otherwise known as the Indiana Department of Insurance's "Available Insurance Proceeds Set Aside" program. Section II. Pursuant to Indiana Code § 27- 2- 15- 4.4(a)(2), the City of South Bend designates its Director of the Department of Code Enforcement as the specific individual who will act on behalf of the enforcement authority with respect to Indiana Department of Insurance Proceeds Set Aside Program. The contact information for the Director of the Department of Code Enforcement is: Director, Department of Code Enforcement City of South Bend