1. (a) This chapter applies to damage to or loss of a building or structure caused by fire or explosion only if all of the following are true:

   1. (1) The municipality in which the building or structure is located is included on the list maintained by the department under section 4.4(b) of this chapter.
   2. (2) The fire or explosion occurs on or after the effective date specified by the department for the municipality under section 4.4(b) of this chapter.
   3. (3) The amount of the final settlement concerning the damage or loss exceeds seventy-five percent (75%) of available insurance proceeds.

   4. (4) If the insurer, in good faith, withheld payment under an insurance policy due to:

      1. (A) suspected arson;
      2. (B) suspected fraud; or

      3. (C) another question concerning coverage;

         the reason for withholding payment has been resolved and final settlement concerning the damage or loss has occurred.

As added by P.L.238-2013, SEC.5.