Bill Text: IA HF137 | 2017-2018 | 87th General Assembly | Introduced

Iowa House Bill 137 (Prior Session Legislation)

Introduced

Bill Title: A bill for an act relating to demolition reserves on fire and casualty claims on property and requesting an interim study on such reserves.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2017-01-31 - Introduced, referred to Commerce. H.J. 150. [HF137 Detail]

Download: Iowa-2017-HF137-Introduced.html


House File 137 - Introduced




                                 HOUSE FILE       
                                 BY  WOLFE and MOMMSEN

                                      A BILL FOR

  1 An Act relating to demolition reserves on fire and casualty
  2    claims on property and requesting an interim study on such
  3    reserves.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    TLSB 2005HH (3) 87
    av/nh

PAG LIN



  1  1    Section 1.  Section 515.139, subsection 1, unnumbered
  1  2 paragraph 1, Code 2017, is amended to read as follows:
  1  3    An insurer shall reserve ten twenty thousand dollars or ten
  1  4  twenty percent, whichever amount is greater, of the payment for
  1  5 damages to the property excluding personal property on which
  1  6 the insurer has issued a fire and casualty insurance policy as
  1  7 demolition cost reserve if the following are applicable:
  1  8    Sec. 2.  DEMOLITION RESERVE ON FIRE AND CASUALTY CLAIMS
  1  9 ON PROPERTY == STUDY REQUEST.  The legislative council is
  1 10 requested to establish an interim study committee for the
  1 11 purpose of reviewing section 515.139 to consider whether the
  1 12 statute adequately meets the needs of cities of various sizes
  1 13 and geographic locations in the state, and reporting its
  1 14 findings and recommendations, if any, to the general assembly.
  1 15                           EXPLANATION
  1 16 The inclusion of this explanation does not constitute agreement with
  1 17 the explanation's substance by the members of the general assembly.
  1 18    This bill provides that an insurer that has issued a fire
  1 19 and casualty insurance policy for the payment of damages to
  1 20 property, excluding personal property, located in a city
  1 21 must reserve an amount equal to $20,000 or 20 percent of the
  1 22 payment for damages, whichever is greater, as a demolition
  1 23 cost reserve. Currently, the required amount is $10,000 or 10
  1 24 percent of the payment, whichever is greater.
  1 25    A city can claim proceeds from the reserve if the city incurs
  1 26 costs to demolish a building where damage to the property
  1 27 renders it uninhabitable or unfit for its purpose, without
  1 28 repair, and proof of loss indicates that damage to the insured
  1 29 structure or building exceeds 75 percent of the face value of
  1 30 the policy covering the building or structure.
  1 31    The bill also includes a request that the legislative
  1 32 council establish an interim study committee for the purpose of
  1 33 reviewing the demolition reserve statute to consider whether
  1 34 the statute adequately meets the needs of cities of various
  1 35 sizes and geographic locations in the state.
       LSB 2005HH (3) 87
       av/nh