2014 Kentucky Revised Statutes CHAPTER 304 - INSURANCE CODE Subtitle 20 - Casualty Insurance Contracts 20.20-210 Notification of insurer of existence of lien -- Payment by insurer to taxing authority.
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304.20-210 Notification of insurer of existence of lien -- Payment by insurer to
taxing authority.
(1)
(2)
Prior to the payment of any insurance proceeds for loss or damage to real
estate caused by fire, but within twenty (20) days of the filing of any notice of
claim for fire insurance proceeds by an insured, provided the amount of the
proceeds for the loss payable under the policy is ten thousand dollars
($10,000) or more, the insurer required to pay such proceeds shall notify the
county clerk of the county in which such loss or damage has been sustained
and demand in writing, by registered or certified mail, that a statement
indicating the amount of all liens existing and referred to by KRS 304.20-200 to
304.20-250 be delivered to such insurer at a specified address, in person or by
registered or certified mail, within fifteen (15) days from the date of receipt by
the county clerk of such demand. Upon the failure of the county clerk to notify
the insurer of the existence of any such liens in said manner, the right of the
state or the county, city or other taxing district to claim against any such
proceeds shall terminate and the lien as to said proceeds shall no longer be
effective. The insurer may rely conclusively upon the amount of the taxes due
as set forth in such notice of lien in making any payments of proceeds to any
person. The county clerk performing such service shall receive a fee of five
dollars ($5) from the insurer.
Within twenty (20) days of receipt of a notice of lien received from the county
clerk pursuant to this section and a final determination of the insurer's
obligation to pay fire insurance proceeds, the insurer shall pay all or a portion
of the proceeds otherwise payable to the insured directly to the state or the
county, city or other taxing district in satisfaction of the total amount of
delinquent real estate taxes as set forth on the statement of lien and shall
deduct the amount thereof from the proceeds otherwise payable to the insured.
A receipt by the county clerk or taxing authority shall be evidence of payment
of such amount by the insurer on account of its liability under its policy to the
insured.
Effective:July 15, 1980
History: Created 1980 Ky. Acts ch. 278, sec. 2, effective July 15, 1980.
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