[HISTORY: Adopted by the City Council of the City of Lower
Burrell as indicated in article histories. Amendments noted where
applicable.]
[Adopted 3-8-1993 by Ord. No. 4-1993; amended in its entirety
at time of adoption of Code (see Ch. 1, General Provisions, Art. I)]
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 where the amount recoverable for the fire loss to the structure
under all policies exceeds $7,500, unless the insurer is furnished
by the City Treasurer with a certificate pursuant to Section 508(b)
of the Insurance Company Law of 1921, as amended by Act 98 of 1992,
and Act 93 of 1994 (collectively, the "Act"),[1] and unless there is compliance with the procedures set
forth in Section 508(c) and (d) of the Act.[2]
B.
Where there are delinquent taxes, assessments, penalties or user
charges against the property ("municipal claims"), or there are expenses
which the City has incurred as a cost for the removal, repair or securing
of a building or other structure on the property (collectively "municipal
expenses"), the Treasurer of the City shall immediately render a bill
for such work, if he has not already done so. Upon written request
of the named insured specifying the tax 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 Treasurer shall furnish,
within 14 working days after the request, to the insurer, a certificate
(or at his discretion an oral notice confirmed in writing) either:
(1)
Stating that there are no unpaid municipal claims or municipal expenses
against the property; or
(2)
Specifying the nature and amount of such claims or expenses, accompanied
by a bill for such amounts.
(3)
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. Upon receipt of a certificate and bill pursuant to Subsection B(1) of this section, the insurer shall transfer to the Treasurer an amount from the insurance proceeds sufficient to pay such 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 where the Treasurer has issued a certificate described in Subsection B(1) 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, the following procedures must be followed:
(1)
The insurer shall transfer from the insurance proceeds to the Treasurer,
in the aggregate, $2,000 for each $15,000 of such claim or fraction
thereof.
(2)
If at the time a loss report is submitted by the insured, such insured
has submitted to the insurer, with a copy to the City, a contractor's
signed estimate of the cost 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 Treasurer 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 pro rata basis by all insurers insuring the building
or other structure.
(3)
Upon the Treasurer's receipt of the above described portion of the
insurance proceeds, the following procedure shall be followed:
(a)
The Treasurer shall place the proceeds in a separate fund to
be used solely as security against the total municipal expenses anticipated
by the City to be required in removing, repairing or securing the
building or structure as required by this article. Such costs shall
include, without limitation, any engineering, legal or administrative
costs incurred by the City in connection with such removal, repair
or securing or any proceedings related thereto; and
(b)
The Treasurer shall mail to the named insured, at the address
received from the insurer, a notice the proceeds have been received
by the City and that the procedures under this subsection shall be
followed.
(c)
After the transfer, the named insured may submit to the City
a contractor's signed estimate of the cost of removing, repairing
or securing the building or other structure, in which event the Treasurer
shall, if such estimate is deemed by the Treasurer to be reasonable,
return to the insured the amount of the funds transferred to the City
in excess of that required to pay the municipal expenses; provided
the City has not commenced to remove, repair or secure the building
or other structure, in which case the City will complete the work.
(d)
The named insured shall pay to the Treasurer, for reimbursement
to the City general fund, the amount of the municipal expenses paid
by the City.
(e)
The Treasurer shall pay the remaining balance in the fund (without
interest) to the named insured upon receipt of a certificate issued
by the Treasurer that the repair, removal or securing of the building
or other structure has been completed in accordance with all applicable
codes and regulations of the City.
(f)
Nothing in this section shall be construed to limit the ability
of the City to recover any deficiency in the amount of municipal claims
or municipal expenses recovered pursuant to this article, or to insurance
proceeds, by an action at law or in equity to enforce the codes of
the City or to enter into an agreement with the named insured with
regard to such other disposition of the proceeds as the City may deem
responsible.
Nothing in this article shall be construed to make an insurance
company, association or exchange liable for any amount in excess of
proceeds payable under its insurance policy or for any other act performed
pursuant to this article or to make this City, any City official,
a municipality or public official 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 article.
An insurance company, association or exchange making payment
of policy proceeds under this article for delinquent taxes or structure
removal liens or removal expenses incurred by the City shall have
a full benefit of such payment including all rights of subrogation
and of assignment.
This article 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 Clerk of the City shall transmit a certified copy of this
article promptly to the Pennsylvania Department of Community and Economic
Development.
Any owner of property, any named insured or insurer who violates
the provisions of this article or who shall fail to comply with any
of the requirements hereof shall be sentenced, upon conviction thereof,
to a fine of not more 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 on which an offense shall continue shall be deemed
a separate offense.
