[HISTORY: Adopted by the Board of Supervisors of the Township of
East Cocalico as indicated in article histories. Amendments noted where applicable.]
[Adopted 6-16-1999 by Ord. No. 1999-04]
As used in this article, the following terms shall have the meanings
indicated:
Any insurance company, association, or exchange doing business in
the Commonwealth of Pennsylvania.
The Township of East Cocalico, County of Lancaster, and Commonwealth
of Pennsylvania.
A.
No insurance company, association of 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
Township where the amount recoverable for the fire loss to the structure under
all policies exceeds $7,500, unless the insurer is furnished by the Secretary-Treasurer
of the Township 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") and unless there is compliance with the procedures set forth in
Section 508(c) and 508(d) of the Act.[1]
[1]
Editor's Note: See 40 P.S. § 638.
B.
Delinquent taxes, assessments, penalties or user charges.
(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 Secretary-Treasurer of the Township shall immediately render a bill for
such work, if not already done. 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 Secretary-Treasurer of the Township shall furnish a 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. Upon receipt of a certificate and bill pursuant to Subsection B(1) of this section, the insurer shall transfer to the Secretary-Treasurer of the Township 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 Secretary-Treasurer of the Township 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 Secretary-Treasurer of the Township, in the aggregate, $2,000 for each
$15,000 of such claim or fraction thereof; or
(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 Township, 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 Secretary-Treasurer
of the Township 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 receipt of the above described portion of the insurance
proceeds the Secretary-Treasurer of the Township 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 structure
as required by this article. 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, in which event the Secretary-Treasurer
of the Township shall, if such estimates deemed by the Secretary-Treasurer
of the Township to be reasonable return to the 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 in which case the Township
will complete the work.
(d)
Pay to the Secretary-Treasurer of the Township, for reimbursement
to the Township general fund, the amount of the municipal expenses paid by
the Township.
(e)
Pay the remaining balance in the fund without interest
to the named insured upon receipt of a certificate issued by the Secretary-Treasurer
of the Township 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 Township.
(f)
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 article, or to insurance
proceeds, by an action at law or in equity to enforce the Township codes or
to enter into an agreement with the named insured with regard to such other
disposition of the proceeds as the Township 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 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 article.
An insurance company, association or exchange making payment of policy
proceeds under this article for 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 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 Secretary-Treasurer of the Township shall transmit a certified copy
of this article promptly to the Pennsylvania Department of Community and Economic
Development or to the successor agency of 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, upon being found liable therefor in a civil enforcement proceeding
commenced by the Township before a Magisterial District Judge, pay a fine
of not less than $100 nor more than $600, plus all court costs, including
reasonable attorney's fees, incurred by the Township in the enforcement of
this article. No judgment shall be imposed until the date of the determination
of the violation by the Magisterial District Judge. If the defendant neither
pays nor timely appeals the judgment, the Township may enforce the judgment
pursuant to the applicable Rules of Civil Procedure. Each day a violation
exists shall constitute a separate offense. Further, the appropriate officers
or agents of the Township are hereby authorized to seek equitable relief,
including injunction, to enforce compliance herewith.