Withholding of Insurance Proceeds; Exceptions

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Sec. 5. An authorized agency that is investigating a fire believed to have been caused by arson may, in writing, order an insurer to withhold payment of the proceeds of an insurance policy on the damaged or destroyed property for up to thirty (30) days from the date of the order. The insurer may not make a payment during that time, except for payments:

(1) for emergency living expenses;

(2) for emergency action necessary to secure the premises;

(3) necessary to prevent further damage to the premises; or

(4) to a mortgagee who is not the target of investigation by the authorized agency.

As added by P.L.247-1989, SEC.1.


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