By: Diane Benjamin
While I was reading a mountain of stories from before the Coliseum was built, I saw mention of the City obtaining insurance to protect them from fraud or theft involving the management company.
I filed this FOIA request:
My request was denied in full.
The interesting part is the reason given for denial:
The denial doesn’t say they don’t have insurance, only that they haven’t filed.
Even if a claim had to wait to be resolved until the felony cases are completed, shouldn’t the insurance company have been contacted? I asked for “correspondence”, not just claims.
I’m sure there is a time limit to file a claim.
Somebody needs to explain why taxpayer money is again not protected.
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They never learn so they…
I have unfortunately dealt with this and with insurance for loss d/t theft/embezzlement you don’t have to wait to file or receive. You can collect your payment from insurance upon indictment. You only have to provide the case numbers (which are public information on the pacer website) and information regarding how/when the money was taken.
Thanks. They need to explain why they haven’t filed.
I would think the criminal case would have little bearing on the insurance payout as the burdens of proof are lessor in a civil matter as opposed to a criminal matter where the the burden of proof is much higher.
Maybe they are afraid an insurance company will blame them! I do.
I think you have the answer Diane…what percentage of the fault lie with the leaders.
99.2
From a legal perspective I would surmise given the complexity and nature of the theft of government funds charges, any claims that would potentially be filed would not be done so until it is determined if there might be any reimbursement-oriented aspects in the disposition of the case, and if so, how much if any, those charged are able to reimburse the City from personal assets, etc, if a conviction occurs. It would be logical to wait to file a claim instead of being paid by an insurance claim prematurely and then any reimbursement-oriented punishment be imposed – which many times is the case.
If a claim is subsequently filed considering that possibility, the amount of the claim would be based upon the amount that could not be recovered from personal assets, etc. from the defendant(s).
Just a consideration.
Don’t you think the insurance company had to be contacted? Court could take years, they certainly have time limits for reporting even if a resolution will be delayed.
Yes, you are correct, they should typically be notified. But, there are exceptions in some cases.
Here is what my research uncovered regarding some “genericl” procedures for municipalities required by Insurance companies for filing claims:
The insured shall on the happening of any event which may give rise to a claim under
its policy-
1) inform the Insurer as soon as reasonably possible and
furnish particulars of any other insurance covering such events;
2) as soon as possible after the event notify the police and the Municipality’s
appropriate departments of any claim involving theft of property and take all reasonable steps to discover the guilty party and to recover the property stolen or lost;
3) claims must be reported in XX days unless such claim is the subject of pending legal action a claim may be delayed, and each state and company have varying time requirements.
THIS IS NOT COMPREHENSIVE, NOT ILLINOIS LAW NOR IS IT NECESSARILY A SPECIFIC PROCEDURE FOLLOWED BY ANYONE
These are, however, generic procedures and may offer some insight on what a municipality would be required to do. It would also explain why there has been no contact at this point. But, don’t rule out the possibility that preliminary contact or sharing of information was performed via telephone and not electronically or by document.
Correction: I should have stated restitution in my post, not reimbursement.
When we the people ask for records regarding our government and its activities, including where our money goes, how can they redact the information? I can see redacting information in criminal cases, but this is about our government. Ooops, I forgot we are in Illinois and I guess our general assembly passed those rules. I will shut up. I did spell cesspool wrong-sorry!
I’ll bet ya REMCO insured them. LOL