Senate Bill 16 Summary

• Expands insurance notification requirements to all municipalities (previously limited to certain cities with populations over 35,000 in counties with 400,000-700,000 residents).

• Requires insurers to notify municipal enforcement authorities within 10 days of receiving notice of fire or explosion damage to an insured building or structure.

• Mandates insurers set aside insurance proceeds (the lesser of 15% of available proceeds or the certified demolition/rehabilitation expenses) in an interest-bearing escrow account administered by the municipality.

• Specifies that municipalities must provide damage certification to insurers within 30 days of receiving the insurance notice, and must file claims against escrowed proceeds within one year of the fire/explosion or final case outcome.

• Effective July 1, 2011 and applies to damage occurring after June 30, 2011.