[HISTORY: Adopted by the City Council of the City of Monessen as
indicated in article histories. Amendments noted where applicable.]
[Adopted 2-15-1995 by Ord. No. 1-1995]
The City Treasurer (hereinafter "the Municipal Officer") is hereby appointed
as the designated officer who is authorized to carry out all responsibilities
and duties of the City of Monessen.
As used in this article, the following terms shall have the meanings
indicated:
Any loss occurring after the effective date of this article and covered
under a policy of fire insurance, including any endorsements or riders to
the policy.
A.
No insurance company, association or exchange (hereinafter
"insurer") doing business in the Commonwealth of Pennsylvania shall pay a
claim of a named insured for fire damage to a structure located within the
City of Monessen where the amount recoverable for the fire loss to the structure
under all policies exceeds $7,500, unless the insurer is furnished by the
Municipal Officer with a municipal certificate pursuant to Section 508(b)[1] and unless there is compliance with Section 508(c) and (d) and
the provisions of this article.
[1]
Editor's Note: See 40 P.S. § 638.
B.
After full compliance with the requirements of Section
508(b)(1)(i),[2] the insurer shall pay the claim of the named insured; provided,
however, that if the loss is agreed upon by the named insured and the insurer
equals or exceeds 60% of the aggregate limits of liability on all fire policies
covering the building structure, the following procedures shall be followed:
(1)
The insurer shall transfer from the insurance proceeds
to the Municipal Officer the aggregate of $2,000 for each $15,000 of a claim
and for each fraction of that amount of a claim, provided that this section
is to be applied such that if the claim is $15,000 or less, the amount transferred
to the City shall be $2,000; and that, 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 an amount
less than the amount calculated under the foregoing transfer formula, the
insurer shall transfer to the city from the insurance proceeds the amount
based upon the estimate.
(2)
The transfer of proceeds shall be on pro rata basis by
all companies, associations or exchanges insuring the building or other structure.
Policy proceeds remaining after the transfer to the city shall be disbursed
in accordance with the policy terms.
[2]
Editor's Note: See 40 P.S. § 638.
C.
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 designated officer shall return the amount of
the funds transferred to the city in excess of the estimate to the named insured
if the city had not commenced to remove, repair or secure the building or
other structure.
D.
Upon receipt of proceeds under this section, the city
shall do the following:
(1)
The Municipal Officer 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 the
city. Such costs shall include, without limitation, any engineering, legal
or administrative costs incurred by the city in connection with such removal,
repair or securing of the building or any proceedings related thereto.
(2)
It is the obligation of the insurer when transferring
the proceeds to provide the city with the name and address of the named insured.
Upon receipt of the transferred funds and the name and address of the named
insured, the Municipal Officer shall contact the named insured, certify that
the proceeds have been received by the city and notify the named insured that
the procedures under this subsection shall be followed.
(3)
When repairs, removal or securing of the building or
other structure have been completed in accordance with all applicable regulations
and orders of the city and the required proof of such completion received
by the Municipal Officer, and if the city has not incurred any costs for repairs,
removal or securing, the fund shall be returned to the named insured. If the
city 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, the city shall transfer the remaining funds to the named insured.
(4)
To the extent that interest is earned on proceeds held
by the city pursuant to this section, and retained by it, such interest shall
belong to the city. 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.
E.
Nothing in this section shall be construed to limit the
ability of the city to recover any deficiency. Furthermore, nothing in this
article shall be construed to prohibit the city 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.
A.
The City of Monessen may by resolution adopt procedures
and regulations to implement Section 508[1] and this article and may by resolution fix reasonable fees to
be charged for municipal activities or services provided pursuant to Section
508 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 insurer who violates
this article shall be subject to a penalty of up to $1,000 per violation.
[Adopted 3-15-1995 by Ord. No. 2-1995]
The Treasurer of the City of Monessen or such official's designee
(hereinafter "the Municipal Officer") is hereby appointed as the designated
officer who is authorized to carry out all responsibilities and duties of
the municipality stated herein.
As used in this article, the following terms shall have the meanings
indicated:
Any loss occurring after the effective date of this article and covered
under a policy of fire insurance, including any endorsements or riders to
the policy.
A.
No insurance company, association or exchange (hereinafter
the "insurer") doing business in the Commonwealth of Pennsylvania shall pay
a claim of a named insured for fire damage to a structure located within the
City of Monessen (hereinafter the "municipality") where the amount recoverable
for the fire loss to the structure under all policies exceeds $7,500, unless
the insurer and the named comply with the provisions of Section 508(b)[1] and the provisions of this article.
[1]
Editor's Note: See 40 P.S. § 638.
B.
The Municipal Officer shall, upon the written request
of the named insured specifying the tax description of the property, name
and address of the insurer and the date agreed upon by the insurer and the
named insured as the date of the receipt of a loss report of the claim, furnish
the insurer either of the following within 14 working days of the request:
(1)
A certificate, or at the discretion of the municipality,
a verbal notification which shall be confirmed in writing by the insurer to
the effect that, as of the date specified in the request, there are no delinquent
taxes, assessments, penalties or user charges against the property and that,
as of the date of the Municipal Officer's certificate or verbal notification,
the municipality has not certified any amount as total costs incurred by the
municipality for the removal, repair or securing of a building or other structure
on the property; or
(2)
A certificate and bill showing the amount of delinquent
taxes, assessments, penalties and use charges against the property as of the
date specified in the request that have not been paid as of the date of the
certificate and also showing, as of the date of the Municipal Officer's
certificate, the amount of the total costs, if any, certified to the Municipal
Officer that have been incurred by the municipality for the removal, repair
or securing of a building or other structure on the property. For the purposes
of this clause, the municipality shall provide to the Municipal Officer the
total amount, if any, of such costs, if available, or the amount of costs
known to the municipality at the time of the Municipal Officer's certificate.
A tax, assessment, penalty or user charge becomes delinquent at the time and
on the date a lien could otherwise have been filed against the property by
the municipality under applicable law.
C.
Upon the receipt of a certificate pursuant to clause
2.2(A) of this article, the insurer shall pay the claim of the named insured
in accordance with the policy terms.
D.
Upon the receipt of a certificate and bill pursuant to Subsection B of this article, the insurer shall return the bill to the Municipal Officer and transfer to the Municipal Officer an amount from the insurance proceeds necessary to pay the taxes, assessments, penalties, charges and costs as shown on the bill or the full amount of the insurance proceeds, whichever is the lesser amount. The municipality shall receive the amount and apply or credit it to payment of the items shown in the bill.
E.
Nothing in this section shall be construed to limit the
ability of the municipality to recover any deficiency.
A.
The transfer of proceeds to the Municipal Officer shall
be on a pro rata basis by all insurers with applicable policies of insurance
providing protection for fire loss.
B.
The City of Monessen may by resolution adopt additional
procedures and regulations to implement Section 508[1] and this article and may by resolution fix reasonable fees to
be charged for municipal activities or services provided pursuant to Section
508 and this article, including but not limited to issuance of certificates
and bills.
[1]
Editor's Note: See 40 P.S. § 638.
Any owner of property, any named insured or any insurer who violates
this article shall be subject to a penalty of up to $1,000 per violation.