RES 1965-95 - 00011383128
RESOLUTION NO. 95 -1965
A RESOLUTION CONDEMNING CERTAIN CONDUCT OF A FEW INSURANCE
CCNPANIES, AND CALLING FOR REVISION OF APPLICABLE MINNESOTA
STATUTES
WHEREAS, on May 69 19651 a series of tornadoes struck the City of
Fridley, causing loss of life, personal injury and suffering and the
destruction of large amounts of public and private property, and
WHEREAS, the President of the United States and the Governor of
the State of Minnesota and the Mayor of Fridley determined that this
event and the conditions emerging from it constituted a "DISASTER.", and
WHEREAS, official bodies of the State of Minnesota and the City of
Fridley determined that conditions existed and exist as a result of the
tornadoes which present extraordinary danger to the health, safety and
welfare of the general public which require and justify extraordinary
public action, and
WHEREAS, the Fridley City Council was advised by experts in the
fields of public health, sanitation and public safety that the security
of the entire City and its people required removal of debris and the
demolition of unsafe structures at the earliest possible time, and such
a program was properly adopted as necessary public policy, and
WHEREAS, in spite of the emergency nature of the danger, the use of
the police power has been limited and the essential elements of "due
process" have been extended to all parties, consistent with the emer-
gency circumstances, and
WHEREAS, the general level of cooperation with -this "public'polioy»
by the insurance industry has been commendable and the majority of insu-
rance companies have been a major asset to the public in this time of
disaster, and have extended themselves substantially beyond the specific
requirements of their contracts and Minnesota Statutes, and
WHEREAS, a very few insurance companies, or the individuals repre-
senting these companies, have in some cases demanded that they be accord-
ed every consideration they would be entitled to in a non - disaster situa-
tion, in the pursuit of private contractral interests and profit, and
WHEREAS, through the use of various legalistic manuevers, these com-
panies successfully-obstructed and blocked public programs adopted to
secure the health and safety of the people of Fridley, and
WHEREAS, the City of Fridley has statutory responsibility to act to
secure the health, welfare and safety of the people of Fridley, the same
being citizens of the State of Minnesota, and further responsibility to
advise other interested public authority of problems which may have
bearing on their areas of responsibility,
NOW, THEREFORE, BE'IT RESOLVED9 by the City Council of the City of
Fridley, as followsi
1. That we commend the insurance industry generally for their
concern for the people of Fridley, their efforts to handle promptly
most of the claims resulting from the tornadoes, and their cooperation
with public authorities in this period of,disaster and stress.
2. That we censure and condemn the narrow and self - serving
actions of a very few insurance companies or their representatives in
some cases, which, while perhaps within the letter of the law, have
had the effect of perpetrating conditions which are dangerous to the
people of Fridley and which have effects reaching far beyond the con-
tractual relationship between an insurance company and its policyholder.
3. 'That if the majority of insurance companies had conducted their
business in a manner similar to these few companies, or if all claims had
been handled in the objectionable manner pursued in some of them, the
City of Fridley would not have been able to cope with the problems and
stress generated by this disaster, that the effects of the disaster,
would have been compounded and deepened, and the general population of
this City would have been jeopardized to a much greater degree.
n
nSOLUTION No. 95 -1965
Continued
AND BE IT FURTHER RESOLVED as follows:
1. That the Commissioner of Insurance establish a special Blue
Ribbon Committee to examine the problems which developed out of this
disaster, especially those which developed between the City of Fridley
in the legal exercise of its authority to protect the health and safety
of the people of Fridley, and certain insurance companies in the legal
exercise of their property rights.
2. That the Commissioner of Insurance cause the preparation of
recommended legislation which would resolve these conflicts, especially
in situations declared by the Governor to constitute a public ^DISASTER*.
3. That the Commissioner of Insurance consider the documentary
evidence evolving from this disaster, both favorable and unfavorable to
the insurance companies, including but not limited to the records and
minutes of the City of Fridley, to evaluate the corporate policy of
various insurance companies in granting the right to continue in the
insurance business in the State of Minnesota.
h. That consideration be given to the need for legislation and
licensing in the fields of both public and corporate Insurance Adjust-
ment.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY
THIS 19TH DAY OF JULY, 1965.
MAYOR - Willi Nee
ATTEST:
CITY C - Marvin C. Brunsell
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