Township of Nether Providence, PA
Delaware County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the Board of Commissioners of the Township of Nether Providence: Art. I, 12-10-1992 as Ord. No. 579. Amendments noted where applicable.]
[Adopted 12-10-1992 as Ord. No. 579]
No insurance company, association or exchange shall pay a claim of a named insured for fire damage to a structure located within Nether Providence Township without complying with the provisions of this chapter and the Pennsylvania Act of May 17, 1921 (P.L. 682, No. 284, as amended.)[1]
[1]
Editor's Note: See Title 40, Insurance, of the Purdon's Pennsylvania Statutes.
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 with Nether Providence Township where the amount recoverable for the fire loss to the structure under all policies exceeds five thousand dollars ($5,000.), 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. 
Procedure for receipt of certificate.
(1) 
The Nether Providence Township Treasurer shall, upon the written request of the named insured specifying the tax description of the property and the date agreed upon by the insurance company, association or exchange and the named insured as the date of the receipt of a proof of loss of the claim, furnish the named insured either of the following, which shall then be supplied by the named insured to the company, association or exchange:
(a) 
A certificate 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 Treasurer's certificate, Nether Providence Township has not certified any amount as total costs incurred by Nether Providence Township for the removal, repair or securing of a building or other structure on the property; or
(b) 
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 Treasurer's certificate, the amount of the total costs, if any, certified to the Treasurer that have been incurred by Nether Providence Township for the removal, repair or securing of a building or other structure on the property. For the purposes of this subsection, Nether Providence Township shall certify to the Treasurer the total amount, if any, of such costs.
(2) 
Payment of claim.
(a) 
Upon receipt of a certificate pursuant to Subsection B(1)(a) of this section, the insurance company, association or exchange shall pay the claim of the named insured in accordance with the policy terms, unless the loss agreed to between the named insured and the company, association or exchange equals or exceeds sixty per centum (60%) of the aggregate limits of liability on all fire policies covering the building of the structure. In the case of such a loss, the insurance company, association or exchange, the insured property owner and Nether Providence Township shall follow the procedures set forth in Subsections C and D of this section.
(b) 
Upon the receipt of a certificate and bill pursuant to Subsection B(1)(b) of this section, the insurance company, association or exchange shall return the bill to the Treasurer and transfer to the Treasurer an amount from the insurance proceeds necessary to pay the taxes, assessments, penalties, charge and costs as shown on the bill. Nether Providence Township shall receive the amount and apply or credit it to payment of the items shown in the bill.
C. 
When the loss agreed to between the named insured and the company, association or exchange equals or exceeds sixty per centum (60%) of the aggregate limits of liability on all fire polices covering the building or other structure, the insurance company, association or exchange shall transfer from the insurance proceeds to the designated officer of Nether Providence Township in the aggregate one thousand dollars ($1,000.) for each twenty thousand dollars ($20,000.), and each fraction of that amount, of a claim; if at the time of a proof of loss agreed to between the named insured and the insurance company, association or exchange the named insured has submitted a contractor's signed estimate of the costs of removing, repairing or securing the building or other structure, the insurance company, association or exchange shall transfer from the 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 Nether Providence Township shall be on pro rata basis by all companies, associations or exchanges insuring the building or other structure. Policy proceeds remaining after the transfer to Nether Providence 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 designated officer shall return the amount of the fund in excess of the estimate to the named insured if Nether Providence Township has not commenced to remove, repair or secure the building or other structure.
D. 
Upon receipt of proceeds by Nether Providence Township as authorized by this section, the designated officer 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 Nether Providence Township. Such costs shall include, without limitation, all engineering, legal and administrative costs incurred by Nether Providence Township in connection with such removal, repair or securing of the structure or any proceedings related thereto. When transferring the funds as required in Subsection C of this section, an insurance company, association or exchange shall provide Nether Providence Township with the name and address of the named insured, whereupon Nether Providence Township shall contact the named insured, certify that the proceeds have been received by Nether Providence 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 designated officer of Nether Providence Township has not insured any costs for repairs, removal or securing. If Nether Providence Township has incurred for repairs, removal or securing of the building or other structure, the costs shall be paid from the fund, and, if excess funds remain, Nether Providence Township shall transfer the remaining funds to the named insured. Nothing in this section shall be construed to limit the ability of Nether Providence Township to recover any deficiency. Further, nothing in this subsection shall be construed to prohibit Nether Providence 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.
The Manager of Nether Providence Township or such official's designee is hereby designated as the township officer authorized to carry out the duties of § 157-2 of this chapter.
The Board of Commissioners, by resolution, may adopt and amend rules and regulations establishing procedures to implement the provisions of this chapter and fixing reasonable fees to be charged for the issuance of certificates and bills, the performance of inspections and for the establishment and supervision of fund accounts.
To the extent that interest is earned on proceeds held by Nether Providence Township pursuant to this chapter and not returned to the named insured, such interest shall belong to Nether Providence Township. 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.
Any person, any owner of a structure located within Nether Providence Township or any insurance company, association or exchange that violates this chapter or any provision hereof shall be punishable by a fine not exceeding one thousand dollars ($1,000.), plus costs of prosecution, for each violation and, in default of payment of such fine and costs, by imprisonment for a term not exceeding thirty (30) days.