[HISTORY: Adopted by the Board of Supervisors of the Township
of Hanover 6-14-2011 by Ord. No. 11-06. Amendments noted where applicable.]
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 building or structure located
within the Township (the "property") where the amount recoverable
for the fire loss to the structure under all policies exceeds $7,500,
unless the insurer is furnished by the Township Treasurer or its designated
officer with a certificate pursuant to Section 508 (b) of the Insurance
Company Law of 1921[1] as amended by Act 98 of 1992 and Act 93 of 1994 (collectively
the "Act") and unless there is compliance with the procedures set
forth in Section 508 (c) and 508 (d) of the Act.
[1]
Editor's Note: Editor's Note: See 40 P.S. § 341
et seq.
B.
Bill and certificate.
(1)
Where there are delinquent taxes, assessments, penalties or user
charges against the property ("municipal claims"), or there are expenses
which the Township has incurred as costs for removal, repair or securing
of a building or other structure on the property (collectively "municipal
expenses"), the Township Treasurer or its designated officer shall
immediately render a bill for such work, if not already done. Upon
written request of the named insured specifying description of the
property, the name and address of the insurer and the date of receipt
by the insurer of a loss report of the claim, the Township Treasurer
or its designated officer shall furnish a certificate (the "Treasurer's
certificate") within 14 days after the request to the insurer either:
(2)
Taxes, assessments, penalties and user charges shall be deemed delinquent
for this purpose if a lien could have been filed for such claims under
applicable law.
(3)
Upon receipt of a Treasurer's certificate and bill pursuant to Subsection B(1) of this section, the insurer shall transfer to the Township Treasurer or designated officer an amount from the insurance proceeds sufficient to pay said sums prior to making payment to the named insured, subject to the provisions of Subsection C hereof.
C.
When all municipal claims and municipal expenses have been paid pursuant to Subsection B of this section or when the Township's Treasurer or designated officer has issued a Treasurer's certificate described in Subsection B(1) of this section, indicating that there are no municipal claims or municipal expenses against the property, the insurer shall pay the claim of the named insured; provided, however, that if the loss 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 or structure on the property, the following procedures must be followed:
(1)
The insurer shall transfer from the insurance proceeds to the Township
Treasurer or designated officer, in the aggregate, $2,000 for each
$15,000 for such claim or fraction thereof;
(2)
If at the time a loss report is submitted by the named insured, such
named insured has submitted to the insurer, with a copy to the Township,
a contractor's signed estimate of the cost of removing, repairing
or securing the building or other structure on the property in an
amount less than the amount calculated under the foregoing transfer
formula, the insurer shall transfer to the Township Treasurer or designated
officer from the insurance proceeds, the amount specified in the estimate.
If there is more than one insurer, the transfer of proceeds shall
be on a prorata basis by all insurers insuring the building or other
structure on the property;
(3)
Upon receipt of the above-described portion of the insurance proceeds,
the Township Treasurer or designated officer shall do the following:
(a)
Place the proceeds in a separate fund to be used solely as security
against the total municipal expenses anticipated by the Township to
be required in removing, repairing or securing the building or other
structure on the property as required by this chapter. Such costs
shall include, without limitation, any engineering, legal or administrative
costs incurred by the Township in connection with such removal, repair
or securing, or any proceedings related thereto;
(b)
Mail to the named insured at the address received from the insurer
a notice that the proceeds have been received by the Township and
that the procedures under this subsection shall be followed;
(c)
After the transfer, the named insured may submit to the Township
a contractor's signed estimate of the cost of removing, repairing
or securing the building or other structure on the property in which
event the Township's designated officer shall, if such estimates
deemed by the Township Treasurer or designated officer to be reasonable,
return to the named insured, the amount of the funds transferred to
the Township in excess of that amount required to pay the municipal
expenses; provided, however, that the Township has not commenced to
remove, repair or secure the building or other structure on the property,
in which case the Township will complete the work;
(d)
When repairs, removal, or securing of the building or other
structure has been completed in accordance with all applicable regulations
and orders of the Township and if the Township has not incurred any
costs for repairs, removal or securing, the remaining balance of the
funds, without interest, shall be returned to the named insured upon
receipt of a Treasurer's certificate issued by the Township Treasurer
or designated officer that the repair, removal or securing of the
building or other structure on the property has been completed in
accordance with all applicable ordinances and regulations of the Township.
D.
Nothing in this section shall be construed to limit the ability of
the Township to recover any deficiency in the amount of municipal
claims or municipal expenses recovered pursuant to this chapter, or
to insurance proceeds, by an action at law or in equity to enforce
the Township ordinances or regulations, or to enter into an agreement
with the named insured with regard to such other disposition of the
proceeds as the Township may deem reasonable.
Nothing in this chapter shall be construed to make an insurer
liable for any amount in excess of proceeds payable under its insurance
policy or for any other act performed pursuant to this chapter or
to make the Township or any public official of the Township an insured
under a policy of insurance or to create an obligation to pay delinquent
property taxes or unpaid removal liens or expenses other than as provided
in this chapter.
An insurer making payment of policy proceeds under this chapter
of delinquent taxes or structural removal liens or removal expenses
incurred by the Township shall have full benefit of such payment including
all rights of subrogation and of assignment.
This chapter shall be liberally construed to accomplish its
purpose to deter the commission of arson and related crimes, to discourage
the abandonment of property and to prevent urban blight and deterioration.
The Township Treasurer or designated officer shall transmit
a certified copy of this chapter promptly to the Pennsylvania Department
of Community and Economic Development.
The Township may by resolution adopt procedures and regulations
to implement the Act and this chapter and may by resolution fix reasonable
fees to be charged for municipal activities or services provided pursuant
to the Act and this chapter, including but not limited to issuance
of the Treasurer's certificates and bills, performance of inspections
and opening separate fund accounts.
The Manager of the Township or such official's designee
or designees are hereby appointed as the designated officer or officers
who are authorized to carry out all responsibilities and duties stated
herein.
Any owner of property, any named insured or insurer who violates
the provisions of this chapter or who shall fail to comply with any
of the provisions of this chapter or who shall fail to comply with
any of the requirements hereof shall be sentenced upon conviction
thereof to pay a fine not greater than $1,000 plus costs and, in default
of payment of said fine and costs, to a term of imprisonment not to
exceed 30 days. Each day in which an offense shall continue shall
be deemed a separate offense.
