40-3901. Cities; payment of proceeds of fire insurance policies; procedure; release of proceeds.
40-3901
40-3901. Cities; payment of proceeds of fire insurance policies;procedure; release of proceeds.(a) The governing body of any city is hereby authorized to establish, byordinance, a procedure for the payment ofnot to exceed 15%of the proceeds of any insurance policy based upon a covered claim paymentmade for damage or loss to a building or other structure, caused by or arisingout of any fire, explosion or windstorm. Theordinance shallapply only to a coveredclaim payment which is in excess of 75% of the face value of the policycovering a building or other insured structure.
(b) The insurer first shall pay all amounts due the holder ofa firstreal estate mortgage against the building or other structure pursuant tothe terms of the policy and endorsements thereto and then shall withholdfrom the covered claim payment a sum not to exceed the amount authorized pursuant to subsection(a) and shall pay such moneys to the city todepositinto an interest-bearing account, unless the city has issued a certificatepursuant to K.S.A. 40-3906, and amendments thereto.
(c) The city shall release the insured's proceeds and any interest whichhas accrued on such proceeds received under subsection (b) within 30 daysafter receipt of such moneys, unless the city has instituted legal proceedingsunder the provisions of K.S.A. 12-1752, and amendments thereto. If thecity has proceeded underthe provisions of K.S.A. 12-1752, and amendments thereto, all moneys inexcessof that necessary to comply with the provisions of K.S.A. 12-1750 etseq., and amendments thereto,for the removal of the building or structure, less salvage value, shallbe paid to the insured.
History: L. 1982, ch. 192, § 2;L. 1997, ch. 102, § 2; July 1.