[HISTORY: Adopted by the Board of Commissioners of the Township
of Upper Gwynedd 1-25-2016 by Ord.
No. 2016-02. Amendments noted where applicable.]
A.
No insurance company, association or exchange doing business in this commonwealth shall pay a claim of a named insured for fire damage to a structure located within Upper Gwynedd Township ("the Township") where the amount recoverable for the fire loss to the structure under all policies exceeds $7,500 unless the insurance company, association or exchange is furnished with a certificate pursuant to Subsection B of this section and unless there is compliance with the procedures set forth in Subsections C and D of this section.
B.
Upon the written request of the named insured specifying the tax
description of the property, name and address of the insurance company,
association or exchange and the date agreed upon by the insurance
company, association or exchange and the named insured as the date
of the receipt of a loss report of the claim, the Township Treasurer,
for taxes, and the Township Manager or his designated agent, for all
other municipal charges or claims, shall furnish the insurance company,
association or exchange either of the following within 14 working
days of the request:
(1)
A certificate or, at the discretion of the Township, 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 certificate or verbal notification, the Township
has not certified any amount as total costs incurred by the Township
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 user 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 certificate, the amount of
the total costs, if any, certified by the Township that have been
incurred by the Township for the removal, repair or securing of a
building or other structure on the property. For the purposes of this
subsection, the Township shall certify the total amount, if any, of
such costs. 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 Township under applicable law.
C.
When the loss agreed to between the named insured and the company,
association or exchange equals or exceeds 60% of the aggregate limits
of liability on all fire policies covering the building or other structure,
the insurance company, association or exchange shall transfer from
the insurance proceeds to the Township Manager in the aggregate $2,000
for each $15,000, and each fraction of that amount of a claim, or,
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 insurance
company, association or exchange shall transfer from the insurance
proceeds the amount specified in the estimate. The transfer of proceeds
shall be on a pro rata basis by all companies, associations or exchanges
insuring the building or other structure. Policy proceeds remaining
after the transfer to the Township shall be disbursed in accordance
with the policy terms. The named insured may submit a contractor's
signed estimate of the costs of removing, repairing or securing the
building or other structure after the transfer, and the Township Manager
shall return the amount of the fund in excess of the estimate to the
named insured if the Township has not commenced to remove, repair
or secure the building or other structure.
D.
Upon receipt of proceeds by the Township as authorized by this section, the Township Manager shall place the proceeds in a separate fund to be used solely as security against the total cost of removing, repairing or securing incurred by the Township. When transferring the funds as required in Subsection C of this section, an insurance company, association or exchange shall provide the Township with the name and address of the named insured, whereupon the Township shall contact the named insured, certify that the proceeds have been received by the Township and notify the named insured that the procedures under this subsection shall be followed. The fund shall be returned to the named insured when repairs, removal or securing of the building or other structure have been completed and the required proof received by the Township Manager if the Township has not incurred any costs for repairs, removal or securing. If the 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, the Township shall transfer the remaining funds to the named insured. Nothing in this section shall be construed to limit the ability of the Township to recover any deficiency. Further, nothing in this subsection shall be construed to prohibit the 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.
E.
Proof of payment by the insurance company, association or exchange of proceeds under a policy in accordance with Subsection C of this section is conclusive evidence of the discharge of its obligation to the insured under the policy to the extent of the payment and of compliance by the company, association or exchange with Subsection C of this section.
F.
Nothing in this section 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 section or to make the Township 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 section.
G.
An insurance company, association or exchange making payments of
policy proceeds under this section for delinquent taxes or structure
removal liens or removal expenses incurred by the Township shall have
a full benefit of such payment, including all rights of subrogation
and of assignment.
The Township Secretary shall file an exact copy of this chapter
with the Department of Community and Economic Development, together
with the name, position and phone number of the Township Manager.
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 failure of any insurance company, association or exchange
to comply with the provisions of this chapter shall render said insurance
company, association or exchange liable to the Township for all delinquent
taxes, assessments, penalties and user charges against the property
and, in addition, reasonable attorneys' fees relating to the collection
thereof.
