Bill > SB794

This bill amends the Insurance Company Law of 1921 to update regulations around fire loss insurance claims for municipal properties. The key changes include raising the threshold for requiring a municipal certificate from $7,500 to $18,000, increasing the amount insurance companies must transfer to municipalities from $2,000 to $4,000 for every $15,000 of a claim when loss exceeds 60% of policy limits. The bill introduces new accountability measures requiring policyholders to report to the municipal governing board within one year how insurance claim funds are being used, including providing a detailed timeline and supporting documents. If policyholders fail to report or meet their proposed timelines, the municipality can vote to confiscate the funds and deposit them into a special fund for the original claim purpose. Additionally, the bill specifies that if a municipal auditor cannot audit escrow funds, the county auditor will be responsible for this task. These provisions aim to increase transparency and ensure that insurance claim funds are used appropriately for property repairs and restoration. The bill will take effect 60 days after enactment.

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https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=S&type=B&bn=794