Insurance okays payment for employee theft claim

City of Harlan filed claim for loss and costs associated with special audit investigation -- Iowa AG and DCI continue their investigation

HARLAN – The City of Harlan will accept insurance reimbursement from its insurance carrier, EMC Insurance, totaling $128,543.67 as payment for an employee theft claim submitted by the city in November stemming from a special state audit investigation.
    The Harlan City Council voted 5-0 Tuesday, Dec. 5 directing city management to sign a release and subrogation receipt with EMC, and the city in turn will be issued a check for its loss.
    EMC Insurance reviewed the claim and honored payment.  Documentation provided by the city to EMC included a completed Iowa State Audit Report received June 27 and proof of loss claim forms with associated narrative information.
    The audit report outlined improper and unsupported disbursements, much attributed to former city administrator Terry Cox.  
    Gene Gettys, Jr., the current Harlan city administrator and former mayor of Harlan, said the insurance company is paying for proof of loss such as improper disbursements ($123,543.67), but not for those deemed unsupported ($21,328.65).  In addition, the city’s deductible is $5,000, but the city also is receiving $10,000, a portion of the total claims expenses incurred by the city.
 

 
 

 

Harlan Newspapers

1114 7th Street
P.O. Box 721
Harlan, IA 51537-0721

(800) 909-6397
news2@harlanonline.com

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