(a) On or before the first day of March of each year, each insurance company writing fire insurance on property within the city limits and its police jurisdiction shall pay to the city an amount equal to four percent of its gross premiums, including all renewal premiums, less return premiums, collected by the company on such policies in effect during the preceding year in the city and its police jurisdiction. The city shall credit one-half of this amount to the fund within 30 days of its receipt by the city. The remaining one-half shall be retained by the city and credited against the insurance companies' business license obligations.
(b) Each such insurance company, on or before the due date of such payment, shall file with the city finance director a sworn, written statement showing the gross amount of premiums, including all renewal premiums, less return premiums, received on such policies during the preceding year. Any insurance company failing to file such statement shall forfeit to the city one thousand dollars ($1,000), to be recovered against such insurance company or its agents by suit brought in the name of the city. All such forfeitures and penalties shall be credited to the fund within 30 days of their receipt by the city.
(c) If any insurance company fails to pay the fees required by this section within 30 days from the date the fees are due, the fees shall be increased by 15 percent for the first 30 days, or fraction thereof, that they are delinquent, plus interest at the rate of one percent per month; and shall be increased by an additional 15 percent for a delinquency of 60 or more days, plus interest at the rate of one percent per month. Nothing in this subsection however, shall be construed as authorizing any delay in payment, and the board or the city may file suit to recover the fees, penalties, and interest imposed by this section, with all such sums recovered becoming part of the fund.
(d) For purposes of this section, fire insurance means any line which insures property against the risk of loss by fire, including homeowners' and vehicle policies. Where a policy issued has more than one type of coverage, the company shall pay only on that portion of the premium attributable to the fire coverage.
(e) The contributions required by this section are separate and apart from any fees or taxes levied or assessed by the city and shall be in addition to any such fees or taxes. The city shall be responsible for collecting the fees required by this section.
Last modified: May 3, 2021