KRS 304.20-210: Notification of insurer of existence of lien -- Payment by insurer to

taxing authority.

(1) 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 w hich

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 add ress, 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 rig ht 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.

(2) 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 oth er

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.