[HISTORY: Adopted by the Borough Council of the Borough of Tarentum 10-21-2002
by Ord. No. 02-4. (This ordinance also superseded former
Ch. 123, Fire Insurance, adopted 12-27-1999 by Ord.
No. 99-2.) Amendments noted where applicable.]
GENERAL REFERENCES
Fire prevention — See Ch. 127.
The Borough Treasurer or Borough Manager 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 (hereinafter 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 within the Borough
of Tarentum (hereinafter the "Borough") where the amount recoverable for the
fire loss to the structure under all policies exceeds $7,500, unless the named
insured or insuring agent is furnished by the Borough Treasurer or Borough
Manager with a Borough certificate pursuant to Section 638(b) of the Insurance
Company Law and unless there is compliance with Section 638(c) and (d) of
the Insurance Company Law and the provisions of this chapter.
A.
Where, pursuant to Section 638(b)(1)(i) of 40 P.S., the
Borough Treasurer or Borough Manager issues a certificate indicating that
there are no delinquent taxes, assessments, penalties or user charges against
real 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 limit of liability on
all fire policies covering the building restructure, the following procedures
must be followed:
(1)
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 insuring agent shall transfer from the insurance proceeds to the Borough
Treasurer 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 Borough shall
be $2,000; or
(2)
If at the time of a proof of loss agreed to between the
name 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, the insuring agent shall transfer to the Borough from
the insurance proceeds the amount specified in the estimate.
B.
The transfer of proceeds shall be on a pro rata basis
by all companies, associations or exchanges insuring the building or other
structure.
C.
After the transfer, the named insured may submit a contractor's
signed estimate 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 Borough in excess of the estimate to the named
insured if the Borough has not commenced to remove, repair or secure the building
or other structure.
D.
Upon receipt of proceeds under this section, the Borough
shall do the following:
(1)
The Borough Treasurer or Borough Manager shall place
the proceeds in the 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 Borough. Such costs shall include, without limitation,
any engineering, legal or administrative costs incurred by the Borough 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 Borough with the name and address of the named
insured. Upon receipt of the transferred funds and the name and address of
the named insured, the Borough Treasurer or Borough Manager shall contact
the named insured, certify that the proceeds have been received by the Borough
and notify the named insured that the proceeds 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 Borough and the required proof of such completion received
by the Borough Treasurer or Borough Manager, and if the Borough has not incurred
any costs for repairs, removing or securing, the fund shall be returned to
the named insured. If the Borough 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 Borough shall transfer the remaining
funds to the named insured; and
(4)
To the extent that interest is earned on proceeds held
by the Borough pursuant to this section and not returned to the named insured,
such interest shall belong to the Borough. 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.
E.
Nothing in this section shall be construed to limit the
ability of the Borough to recover any deficiency. Furthermore, nothing in
this subsection shall be construed to prohibit the Borough 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
had been negotiated.
A.
Where, pursuant to 40 P.S. 638 et seq. the Borough Treasurer
or Borough Manager issues a certificate and bill showing the amount of delinquent
taxes, assessment, 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 where the Borough Treasurer or Borough Manager also shows
as of the date of the Treasurer's certificate the amount of the total
costs, if any, certified to the Treasurer or Manager that have been incurred
by the Borough for the removal, repair or securing of a building or other
structure on the property, the Treasurer or Manager shall total all costs
and tender as part of the certificate to the insurance company.
B.
Upon receipt of the certificate pursuant to (1) Subsection
(b)(1)(ii) of 40 P.S. § 638, the insuring agent shall return the
bill to the Treasurer or Manager and transfer to the Treasurer or Manager
an amount from the insurance proceeds necessary to pay the taxes, assessment,
penalties, charges and costs as shown on the bill. The Borough shall receive
the amount and apply or credit to payment of the items shown in the billing.
The Council of the Borough of Tarentum may by, resolution, adopt procedures
and regulations to implement Act 93 of 1994 as amended and this chapter and
may, by resolution, fix reasonable fees to be charged for Borough activities
or services provided pursuant to Act 93 of 1994 and this chapter, including
but not limited to issuance of certificates and bills, performance of inspections
and opening separate fund accounts.
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.
