This bill amends the Insurance Company Law of 1921, specifically addressing the requirements for insurance companies to pay fire loss claims. It raises the threshold for when a municipal certificate is required from $7,500 to $18,000. Additionally, it increases the amount that must be transferred to the municipality from $2,000 to $4,000 for every $15,000 of the claim when the loss equals or exceeds 60% of the aggregate limits of liability on all fire policies covering the structure.

Furthermore, the bill introduces new subsections that require policyholders to report to the municipality on the utilization of funds received under this section within one year, including a timeline for remaining funds. It outlines the process for the governing board to approve or modify this timeline and stipulates consequences for non-compliance, including the potential confiscation of funds. The bill also assigns the responsibility of auditing these funds to the county auditor if the municipality lacks an auditor or if there is a conflict of interest. The act is set to take effect in 60 days.

Statutes/Laws affected:
Printer's No. 869 (Jun 03, 2025): P.L.682, No.284