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, meaning that insurance companies cannot pay claims exceeding this amount without the necessary municipal documentation. Additionally, the bill 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 is significant.

Furthermore, the bill introduces new reporting requirements for policyholders who receive funds under this section. They must report to the municipality within one year on how the funds are utilized and provide a timeline for any remaining funds. If the timeline is not met, the municipality has the authority to confiscate the funds for a special purpose. The bill also stipulates that if a municipality lacks an auditor or if there is a conflict of interest, the county auditor will take on the responsibility of auditing the funds. This act will take effect in 60 days.

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