02-25-2015 Council Packet - Laserfiche WebLink

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RELEVANT LINKS: M1l Ina. Sint. i (5A.sable. Mina. Stu. § OA. O. actin I um. Stat. ; 6:m.$0. sill d. . If the commissioner does not receive the written report, the commissioner will provide a written reminder notice. If the commissioner does not receive the report within 30 days after providing the written reminder, the city will be treated as having made a written request to be deleted. D. Discontinuing the account If the city no longer wishes to have the escrow or trust account and wants to be removed from the commissioner's list, the city Hurst notify the commissioner in writing that it wants to be deleted from the list. The city may stop operating the escrow or trust account for more than six months after notifying the commissioner. The city must give 30 days written notice before it stops using the account. After the commissioner receives the city's written request, the commissioner shall prepare and distribute an amendment to the list, indicating the deletion. The deletion shall be effective on the date specified by the commissioner in the amendment. The commissioner must then notify the city and insurance companies of the effective date of the deletion, which must be not less than 30 days after the insurance companies receive notice. A city must continue to use its escrow or trust account for any loss which occurs before the effective date of the deletion. C. Funding and using the account Once the city has set up the account, it cannot use it unless there is an insured building in the city that has been damaged by fire or explosion. liven then, the account is only used after the statutory process is followed. 1. Funding the account When a property owner files a claim fbr a loss to his or her insured real property due to fire or explosion and a final settlement is reached on the loss, the insurer must withhold from payment of the settlement the lesser of 25 percent of the actual cash value of the insured's real property at the time of the loss or 25 percent of the final settlement. (The property owner with insurance is known as "the insured"). For purposes of this law, a final settlement is the determination of the amount owed to the insured by any of the following means: o Acceptance of a proof of loss by the insurer. o Execution of a release by the insured. • Acceptance of an arbitration award by both the insured and the insurer. • A court judgment. League of Minnesota Cilias Information Memo. 6/24/2013 Dangerous Properties Page 6 5