MASON CITY – The Mason City Council heard about a new form of insurance available to the city Tuesday night that would allow the city to pay claims that its insurance provider has denied.
The city could come in after the denial is made and pay one claim up to $5,000 with a maximum per year of $10,000 total. The city would pay the claim and the insurance provider would reimburse the city 75% of he approved amount by the insurance company.
City Administrator Brent Trout is recommending the city purchase the insurance, and the issue will likely be on the next council agenda, up for vote.
There were several instances in the recent past where citizens came forward to the city with claims against the city and its insurance carrier denied payment. In one case, a woman encountered a Mason City Police vehicle unexpectedly on a bike path near NIACC and lost control of her bike. The woman was injured and the city insurance carrier (travelers Insurance, at the time) denied any responsibility and allowed no payment on the claim. In another case, the city demolished a man’s storage shed in his back yard while digging. Again the man’s claim was denied by the city’s insurance provider.
Mason City now has a new insurance provider, called the Iowa Communities Assurance Pool (ICAP). ICAP offers the moral obligation insurance product.
