[HISTORY: Adopted by the Council of the City of Latrobe 10-13-2015 by Ord. No. 2015-7.[1]Amendments noted where applicable.]
GENERAL REFERENCES
Fire Department — See Ch. 271.
Fire limits; fireproof construction — See Ch. 275.
Fire prevention standards — See Ch. 279.
[1]
Editor's Note: This ordinance also superseded former
Ch. 273, Fire Insurance Claims, adopted 4-12-2004 by Ord. No. 2004-4.
Ordinance No. 1993-4, entitled "Ordinance Adopting Procedures
Under Section 508(C) and (D) of the Fire Insurance Company Law of
1921, As Amended," be and the same is hereby repealed in its entirety.
The City Manager, or such official's designee, is hereby
appointed as the designated officer who is authorized to carry out
all responsibilities and duties stated herein.
No insurance company, association or exchange (herein 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
with the City where the amount recoverable for the fire loss to the
structure under all policies exceeds $7,500, unless the insuring agent
is furnished by the City Manager with a municipal certificate pursuant
to Section 508(B) of Act 98 of 1992, as amended, and unless there
is compliance with Section 508(C) of Act 98 of 1992, as amended, and
the provisions of this chapter.[1]
[1]
Editor's Note: See 40 P.S. § 638.
Where, pursuant to Section 508(B)(1)(I) of Act 98 of 1992,[1] as amended, the City Manager issues a certificate indicating
that there are no delinquent taxes, assessments, or water, sewer or
sanitation user charges, or any interest or penalties thereon related
to the damaged subject 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:
A.
The insuring agent shall transfer from the insurance proceeds to
the designated officer of the City in the aggregate of $2,000 for
each $15,000 of a claim and for 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 City shall be $2,000; or
B.
If at the time of a proof of loss agreed 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 and the estimate is less than $2,000,
the insuring agent shall transfer to the City from the insurance proceeds
the amount specified in the estimate.
C.
The transfer of proceeds shall be on a pro-rata basis by all companies,
associations or exchanges insuring the building or other structure.
D.
After the transfer, the named insured shall submit a contractor's
signed estimate within 60 days 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 has not commenced
to remove, repair, or secure the building or other structure.
E.
Upon receipt of proceeds under this section, the City shall do the
following:
(1)
The designated officer shall place the proceeds in a 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 all reasonable and customary
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; and
(2)
It is the obligation of the insuring agent 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, certify that the proceeds have been received
by the City and notify the named insured that the proceedings under
this subsection shall be followed; and
(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 required proof of such completion is received
by the designated officer, and if the City has not incurred any costs
for repairs, removal or securing, and proof has been submitted to
the City that the contractor has been paid, and any taxes, assessments,
water, sewer or sanitation or other user charges, or any interest
or penalties thereon relating to the damaged subject property have
been paid, 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, or any taxes, assessments, water, sewer or sanitation
or other user charges, or any interest or penalties thereon relating
to the damaged subject property have not been paid, the costs shall
be paid from the fund. Further, if the contractor has not been paid,
the City shall retain such amount until the City is authorized by
agreement between the insured and contractor to disburse said funds
or is directed by order of court to disburse said funds. If excess
funds remain, the City shall transfer the remainder of the funds to
the named insured; and
(4)
To the extent that interest is earned on proceeds held by the City
pursuant to this section, and not returned to the named insured, 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.
(5)
Nothing in this section shall be construed to limit the ability of
the City to recover any deficiency. Furthermore, nothing in this subsection
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, or an agreed-upon third party, if some other reasonable
disposition of the damaged property has been negotiated.
[1]
Editor's Note: See 40 P.S. § 638.
The Council of the City may, by resolution, adopt procedures
and regulations to implement Act 98 of 1992, as amended,[1] and this chapter and may, by resolution, fix reasonable
fees to be charged for municipal activities or services provided pursuant
to Act 98 of 1992, as amended, and this chapter, 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 insuring agent
who violates this chapter shall be subject to a penalty of up to $1,000
per violation.
