Ind. Code ch. 27-2-15

Ind. Code ch. 27-2-15
in effect

Ind. Code § 27-2-15-1 "Available insurance proceeds" defined

Sec. 1. As used in this chapter, "available insurance proceeds" means the proceeds payable under an insurance policy based upon a claim for damage to or loss of a building or other structure caused by fire or explosion, minus proceeds paid to: (1) the insured for emergency living expenses; (2) take emergency action necessary to secure the premises; (3) prevent further damage to the premises; or (4) a lienholder or mortgagee who is not the target of an investigation by an authorized agency (as defined in IC 27-2-13-1). As added by P.L.247-1989, SEC.2.

Ind. Code § 27-2-15-2.5 "Department"

Sec. 2.5. As used in this chapter, "department" refers to the department of insurance created by IC 27-1-1-1. As added by P.L.238-2013, SEC.2.

Ind. Code § 27-2-15-3 "Enforcement authority" defined

Sec. 3. As used in this chapter, "enforcement authority" has the meaning set forth in IC 36-7-9-2. As added by P.L.247-1989, SEC.2.

Ind. Code § 27-2-15-3.2 "Final settlement"

Sec. 3.2. (a) As used in this chapter, "final settlement" means a determination: (1) of the amount owed to an insured: (A) under the building coverage part of an insurance policy issued by an insurer; and (B) for damage to or loss of a building or other structure caused by fire or explosion; and (2) made by any of the following means: (A) Acceptance of a proof of loss by the insurer. (B) Execution of a release by the named insured. (C) Acceptance of an arbitration award by the named insured and the insurer. (D) Judgment of a court of competent jurisdiction. (b) The term "final settlement" does not apply to damage or loss related to contents, personal property, or another loss that is not covered under the building coverage part of an insurance policy. As added by P.L.238-2013, SEC.3.

Ind. Code § 27-2-15-4 "Insurer" defined

Sec. 4. As used in this chapter, "insurer" means a fire and marine insurance company, as defined in IC 27-1-2-3(u). As added by P.L.247-1989, SEC.2.

Ind. Code § 27-2-15-4.2 "Municipality"

Sec. 4.2. As used in this chapter, "municipality" has the meaning set forth in IC 36-1-2-11. As added by P.L.238-2013, SEC.4.

Ind. Code § 27-2-15-4.3 Application of chapter

Sec. 4.3. (a) This chapter applies to damage to or loss of a building or structure caused by fire or explosion only if all of the following are true: (1) The municipality in which the building or structure is located is included on the list maintained by the department under section 4.4(b) of this chapter. (2) The fire or explosion occurs on or after the effective date specified by the department for the municipality under section 4.4(b) of this chapter. (3) The amount of the final settlement concerning the damage or loss exceeds seventy-five percent (75%) of available insurance proceeds. (4) If the insurer, in good faith, withheld payment under an insurance policy due to: (A) suspected arson; (B) suspected fraud; or (C) another question concerning coverage; the reason for withholding payment has been resolved and final settlement concerning the damage or loss has occurred. As added by P.L.238-2013, SEC.5.

Ind. Code § 27-2-15-4.4 Municipality election regarding governance by chapter

Sec. 4.4. (a) A municipality may elect to be governed by this chapter by submitting to the department a written request. The request must: (1) be approved by adoption of an ordinance by the municipality's legislative body; and (2) contain contact information for the specific individual who will act on behalf of the enforcement authority with respect to this chapter. (b) The department shall: (1) maintain a list of all municipalities that submit a request under subsection (a), including the contact information required by subsection (a)(2); (2) specify the effective date of each addition of a municipality to the list; and (3) publish the list on an Internet web site. (c) A municipality that made an election under subsection (a) may elect to cease being governed by this chapter and may be removed from the list maintained under subsection (b) as follows: (1) The municipality shall submit to the department a written request, approved by adoption of an ordinance by the municipality's legislative body, to cease being governed by this chapter and to be removed from the list. (2) The department shall: (A) amend the list by removing the municipality; (B) specify on the amended list the effective date of the municipality's removal from the list; and (C) publish the amended list on the Internet web site described in subsection (b)(3). (d) A municipality that is governed by this chapter shall remit to the department a one (1) time fee of one hundred dollars ($100). As added by P.L.238-2013, SEC.6.

Ind. Code § 27-2-15-4.5 Notice to enforcement authority of existence of policy

Sec. 4.5. (a) An insurer that: (1) issued an insurance policy that: (A) covers a building or other structure that is: (i) located in a municipality governed by this chapter; and (ii) damaged by a fire or explosion; and (B) is in effect at the time that the fire or explosion occurs; and (2) receives notice of a claim for the damage by the named insured; shall, not more than fifteen (15) days after a final settlement is reached, notify the enforcement authority of the municipality about the existence of the policy. (b) The notice to an enforcement authority required by subsection (a) must: (1) be in writing; (2) identify the insurer and state the insurer's address; and (3) identify the building or structure and state the location of the building or structure. (c) The commissioner may take action under IC 27-1-3-10 and IC 27-1-3-19 against an insurer that violates this section. As added by P.L.123-1992, SEC.1. Amended by P.L.119-2012, SEC.159; P.L.238-2013, SEC.7.

Ind. Code § 27-2-15-5 Evidence of repair contract; set aside of insurance proceeds; amount in escrow

Sec. 5. (a) This section does not apply to damage or loss to a building or structure described in section 4.5 of this chapter if: (1) not more than fifteen (15) days after final settlement has occurred concerning the building or structure, the named insured files with the insurer evidence of a contract to repair the building or structure; and (2) upon receipt of the evidence of a contract to repair, the insurer notifies the municipality that this section does not apply due to the existence of the evidence. (b) If: (1) the requirements of subsection (a) are not met; and (2) the enforcement authority of a municipality that receives notice from an insurer under section 4.5(a) of this chapter certifies to the insurer the amount of demolition or rehabilitation expenses that the municipality anticipates incurring or has incurred under IC 36-7-9 in connection with the building or structure; the insurer shall remit to the municipality or the enforcement authority the amount determined under subsection (d). (c) To require the remittance of money under this section, an enforcement authority must: (1) provide the certification under subsection (b) within fifteen (15) days after the enforcement authority receives notice under section 4.5(a) of this chapter; and (2) comply with subsection (d). (d) The amount that must be remitted to the municipality or the enforcement authority under subsection (b) is the lesser of: (1) ten percent (10%) of the available insurance proceeds, if any; (2) an amount equal to the amount certified; or (3) the following: (A) Seven thousand dollars ($7,000) for a residential building or structure. (B) Fifteen thousand dollars ($15,000) for a nonresidential building or structure. For purposes of this subsection, "a residential building or structure" means real property consisting of not more than four (4) residential units, one (1) of which is the principal place of residence of the named insured. (e) The amount remitted under this section shall be placed by the enforcement authority in an interest bearing escrow account to be administered by the enforcement authority and the municipality. The insured shall be notified by the enforcement authority of the actions taken under this section. As added by P.L.247-1989, SEC.2. Amended by P.L.123-1992, SEC.2; P.L.238-2013, SEC.8.

Ind. Code § 27-2-15-6 Claims against set aside; use of funds

Sec. 6. (a) Upon a judgment being rendered under IC 36-7-9-13(c) or IC 36-7-9-13(d), the municipality is entitled to the available insurance proceeds set aside only: (1) to the extent of the costs set forth in IC 36-7-9-12; and (2) for demolition and rehabilitation expenses certified under section 5(b) of this chapter. Available insurance proceeds set aside under section 5 of this chapter may not be used to pay the costs of fire service, police service, or any other service provided in the normal course of the municipality's business. (b) All claims by the municipality against the available insurance proceeds must be made within one (1) year after the date of the fire or explosion or within one (1) year after the final outcome of a case or appeal initiated under IC 36-7-9, whichever is later. Proceeds in the escrow account that are not claimed in this manner shall be paid to the insured. As added by P.L.247-1989, SEC.2. Amended by P.L.238-2013, SEC.9.

Ind. Code § 27-2-15-7 Immunity of insurers

Sec. 7. An insurer complying with this chapter or attempting in good faith to comply with this chapter is immune from civil and criminal liability in connection with actions taken under this chapter, and those actions, including withholding payment of any insurance proceeds under this chapter or releasing or disclosing any information under this chapter, may not be considered to violate IC 27-4-1. As added by P.L.247-1989, SEC.2.

Ind. Code § 27-2-15-8 Satisfaction of contractual liability

Sec. 8. Insurance proceeds set aside in an escrow account under section 5 of this chapter shall be considered as having been paid to the insured in satisfaction of any contractual liability under the policy. As added by P.L.247-1989, SEC.2.

Ind. Code § 27-2-15-9 Immunity

Sec. 9. The department, the commissioner and employees of the department, the state fire marshal, a deputy fire marshal, an enforcement authority, or an officer of a municipality complying with this chapter or attempting in good faith to comply with this chapter is immune from civil and criminal liability in connection with actions taken under this chapter. As added by P.L.247-1989, SEC.2. Amended by P.L.238-2013, SEC.10.

Ind. Code § 27-2-15-10 Rules

Sec. 10. The insurance commissioner may adopt rules under IC 4-22-2 necessary to implement this chapter. These rules must include a procedure for the administration of escrow accounts established under section 5 of this chapter, including the disposition of any funds in the escrow account not claimed under section 6 of this chapter. As added by P.L.247-1989, SEC.2.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/27Fetched: 10/17/2026

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