Township of Lancaster, PA Insurance

The Treasurer of Lancaster Township, or designee, is hereby appointed as the designated officer who is authorized to carry out all responsibilities and duties stated herein.

No insurance company, association, or exchange (hereinafter the "insuring agent") doing business in the Commonwealth of Pennsylvania shall pay a claim of a named insured for fire damage to a structure located in Lancaster Township (hereinafter the "municipality") where the amount recoverable for the fire loss to the structure under all policies exceeds $7,500 unless the named insured or insuring agent is furnished by the Municipal Treasurer with a municipal certificate or verbal notification confirmed in writing by the insuring agent pursuant to Section 508(b) of Act 98 of 1992 as amended by Act 93 of 1994[1] and unless there is compliance with Section 508(c) and (d) of Act 98 of 1992 amended by Act 93 of 1994 and the provisions of this article.

[1]

Editor's Note: See 40 P.S. § 638.

Where pursuant to Section 508(b)(1)(I) of Act 98 of 1992, the Municipal Treasurer issues a certificate indicating that there are no delinquent taxes, assessments, penalties or user charges against real property, the insuring agent shall pay the claim of the named insured, provided however, that if the loss agreed upon by the named insured and the insuring agency equals or exceeds 60% of the aggregate limits of liability on all fire policies covering the building or structure, the following procedures must be followed:

A.

The insuring agent shall transfer from the insurance proceeds to the Treasurer of Lancaster Township in the aggregate $2,000 for each $15,000 of a claim and for each fraction of that amount of a claim, this section to be applied such that if the claim is $15,000 or less, the amount transferred to Lancaster Township shall be $2,000.

B.

If at the time of a loss report the named insured has submitted a contractor's signed estimate of the costs of removing, repairing or securing the building or other structure in the amount less than the amount calculated as provided in Subsection A above, the insuring agent shall transfer to Lancaster Township from the insurance proceeds the amount specified in the estimate.

C.

The transfer of proceeds shall be on a pro rata basis by all companies, associations or exchanges insuring the building or other structure.

D.

After the transfer, the named insured may submit a contractor's signed estimate of the costs of removing, repairing or securing the building or other structure, and the Treasurer shall return the amount of the funds transferred to Lancaster Township in excess of the estimate to the named insured, if the municipality has not commenced to remove, repair or secure the building or other structure.

E.

Upon receipt of proceeds under this section, Lancaster Township shall do the following:

(1)

The Treasurer shall place the proceeds in the separate fund to be used solely as security against the total costs of removing, repairing or securing the building or structure which are incurred by Lancaster Township. Such costs will include, without limitation, any engineering, legal or administrative costs incurred by the municipality in connection with such removal, repair or securing of the building or any proceedings related thereto; and

(2)

It is the obligation of the insuring agent when transferring the proceeds to provide Lancaster Township with the name and address of the named insured. Upon receipt of the transferred funds and the name and address of the named insured, certify that the proceeds have been received by the Lancaster Township and notify the named insured that the procedures under this subsection shall be followed; and

(3)

When repairs, removal or securing of the building or other structure have been completed in accordance with all applicable regulations and orders of Lancaster Township and the required proof of such completion received by the Treasurer, and if Lancaster Township has not incurred any costs for repairs, removal or securing, the fund shall be returned to the named insured. If Lancaster Township has incurred costs for repairs, removal or securing of the building or other structure, the costs shall be paid from the fund and if excess funds remain, Lancaster Township shall transfer the remaining funds to the named insured; and

(4)

To the extent that interest is earned on proceeds held by Lancaster Township pursuant to this section and not returned to the named insured, such interest shall belong to the township. To the extent that proceeds are returned to the named insured, interest earned on such proceeds shall be distributed to the named insured at the time that the proceeds are returned.

F.

Nothing in this section shall be construed to limit the ability of Lancaster Township to recover any deficiency. Furthermore, nothing in this subsection shall be construed to prohibit Lancaster Township and the named insured from entering into an agreement that permits the transfer of funds to the named insured if some other reasonable disposition of the damaged property has been negotiated.

The Board of Supervisors may by resolution adopt procedures and regulations to implement Act 98 of 1992[1] and this article, and may by resolution fix reasonable fees to be charged for municipal activities or services provided pursuant to Act 98 of 1992 and this article, including but not limited to issuance of certificates and bills, performance of inspections, and opening separate fund accounts.

[1]

Editor's Note: See 40 P.S. § 638.

Any owner of property, any named insured or any insuring agent who violates this article shall be subject to a penalty of up to $1,000 per violation.

The Treasurer of Lancaster Township shall file an exact copy of Ord. No. 1999-2 with the Pennsylvania Department of Community and Economic Development together with the name and phone number of the Treasurer of Lancaster Township, as required by the provisions of Act 93 of 1994.