[HISTORY: Adopted by the Board of Commissioners of the Township
of Rochester as indicated in article histories. Amendments noted where
applicable.]
[Adopted 8-17-1993 by Ord. No. 341]
The Township's Secretary or such official's designee is hereby
appointed as the designated officer who is authorized to carry out
all responsibilities and duties stated herein.
A.Â
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
within Rochester 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 pursuant to
Section 508(B) of Act 98 of 1992[1] and unless there is compliance with Section 508(C) and
(D) of Act 98 of 1992[2] and the provisions of this article.[3]
B.Â
Where pursuant to Section 508(B)(1)(I) of Act 98 of 1992[4] 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 agent 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:
(1)Â
The insuring agent shall transfer from the insurance proceeds to
the designated officer of the municipality in the aggregate of $2,000
for each $15,000 of a claim or 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 the municipality shall be $2,000; or if
at the time of a proof of loss agreed to between the named insured
and the insuring agent the named insured has submitted a contractor's
signed estimate of the costs of removing, repairing or securing the
building or other structure, the insuring agent shall transfer to
the municipality from the insurance proceeds the amount specified
in the estimate.[5]
(2)Â
The transfer of proceeds shall be on a pro rata basis by all companies,
associations or exchanges insuring the building or other structure.
(3)Â
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 in an amount less than the amount calculated under
the foregoing transfer formula, and the designated officer shall return
the amount of the funds transferred to the municipality 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.[6]
(4)Â
Upon the receipt of proceeds under this section, the municipality
shall do the following:
(a)Â
The designated 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 municipality. Such costs shall 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.
(b)Â
It is the obligation of the insuring agent when transferring
the proceeds to provide the municipality 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 designated officer shall
contact the named insured, certify that the proceeds have been received
by the municipality and notify the named insured that the procedures
under this subsection shall be followed.
(c)Â
When repairs, removal or securing of the building or other structure
has been completed in accordance with all applicable regulations and
orders of the municipality and the required proof of such completion
received by the designated officer, and if the municipality has not
incurred any costs for repairs, removal or securing, the fund shall
be returned to the named insured. If the municipality 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 municipality shall transfer the remaining funds to the named insured.
(d)Â
To the extent that interest is earned on proceeds held by the
municipality pursuant to this section and not returned to the named
insured, such interest shall belong to the municipality. 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.
(5)Â
Nothing in this section shall be construed to limit the ability of
the municipality to recover any deficiency. Furthermore, nothing in
this section shall be construed to prohibit the municipality 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.
[4]
Editor's Note: See 40 P.S. § 638(b)(1).
The Commissioners of Rochester Township 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 of certificates and bills,
performance of inspections and opening separate fund accounts.
[1]
Editor's Note: See 40 P.S. § 638.
An 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.
[Adopted 4-15-2021 by Ord. No. 484]
The First Class Township Code, at 53 P.S. § 56516,[1] authorizes the Township to make regulations within the
Township for the management of fire and prevention thereof.
[1]
Editor's Note: See now 53 P.S. § 56579.7.
The Rochester Fire Department ("Department") operates within
the Township to provide fire protection.
The Township wishes to provide for reimbursement to the Rochester
Fire Department for any and all costs and/or expenses incurred by
the Department which may be obtainable by the Department through the
submission of claims only to the individual owners' insurance carriers.
This includes property insurance, vehicle insurance, or any other
applicable insurance coverage.
It is the finding of the Township that individual property owners,
or vehicle owners, may maintain insurance coverage within their own
casualty insurance policies, homeowners' policies, and/or other applicable
policies that would provide reimbursement to the Fire Department for
firefighting and other services rendered in response to emergency
service requests.
The Department is hereby authorized and directed, by and through
its officers and authorized representatives, to ascertain what insurance
coverages may be applicable and available under any given circumstance,
and to take all necessary and affirmative steps to apply for and receive
reimbursement from any insurance carriers for any cost and/or expense
incurred for services, supplies and/or equipment used for or provided
to the property owner/vehicle owner by the Department.
Under no circumstances shall any property owner/vehicle owner
ever receive a bill from the Department for fire protection or other
services provided by the Department under this article if no insurance
coverage is available or for any amount of service cost that exceed
what is covered by insurance.
This article shall be liberally construed to accomplish its
purpose to compensate and/or reimburse the Township from insurance
proceeds only for costs and/or expenses incurred while providing services
pursuant to their duties for the Fire Department.
Rates to be charged will be based on the attached fee sheet[1] and will only be for use of Rochester Fire Department
equipment. Actual costs of services that are usual, customary, and
reasonable will be totaled and forwarded onto the insurance carrier.
Insurance carriers are to submit payment to Rochester Township within
60 days of receipt. The Rochester Township Commissioners may from
time to time amend the fee sheet by resolution.
[1]
Editor's Note: The current fee sheet is on file in the Township
offices.
