[HISTORY: Adopted by the Board of Supervisors
of the Township of Tobyhanna as indicated in article histories. Amendments
noted where applicable.]
[Adopted 10-13-2008 by Ord. No. 471]
A.
When there is fire damage to a property, structure
or building in Tobyhanna Township (hereinafter "Property"), no insurance
company, association or exchange (hereinafter "Insurer") doing business
in the Commonwealth of Pennsylvania shall pay a claim of a named insured
for fire damage to the Property within the Township of Tobyhanna,
Monroe County, Pennsylvania, where the amount recoverable for the
fire loss to the Property under all policies exceeds $7,500, unless
the Insurer is furnished by the Treasurer of the Township of Tobyhanna
with a certificate pursuant to § 508(b) of the Insurance
Company Law of 1921, as amended by Act 98 of 1992 and Act 93 of 1994,
40 P.S. § 638 (collectively the "Act"), and unless there
is compliance with the procedures set forth in Sections 508(c) and
508(d) of the Act, as amended.
B.
Where there are delinquent taxes, assessments, penalties
or user charges against the Property (hereinafter "Municipal Claims"),
or there are expenses which the Township has incurred as costs for
removal, repair or securing of the Property in a manner acceptable
to the Township (hereinafter "Municipal Expenses"), the Secretary
of the Township shall immediately render a bill for such work, if
he/she has not already done so.
(1)
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 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 of this section, the Insurer shall transfer to the Secretary 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(3) hereof.
C.
When all Municipal Claims and Municipal Expenses have been paid pursuant to Subsection B of this section, or when the Township Treasurer has issued a certificate described in Subsection B(1)(a) indicating that there are no Municipal Claims or Municipal Expenses against the Property, the Insurer shall pay the claim of the named insured in accordance with the policy terms, unless 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 Property. In the case of such a loss, the Insurer, the insured and the Township shall follow the following procedures:
(1)
The Insurer shall transfer from the insurance proceeds
to the Township Treasurer, 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 Property in a manner acceptable to the Township in
an amount less than the amount calculated under the foregoing transfer
formula, the Insurer shall transfer to the Secretary of the Township
of Tobyhanna 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 Property.
(3)
Upon receipt of the above-described portion of the
insurance proceeds, the Secretary of the Township of Tobyhanna, Monroe
County, Pennsylvania, 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 Property as required by this article and in a manner acceptable
to the Township. 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 of Tobyhanna a contractor's signed estimate of the
cost of removing, repairing or securing the Property in a manner acceptable
to the Township, in which event the Township Secretary shall, if such
estimates are deemed by the Township Secretary to be reasonable, return
to the insured the amount of the funds transferred to the Township
of Tobyhanna 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 Property, in which case the Township
will complete the work;
(d)
Pay to the 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 Township Secretary that the repair, removal or securing of
the Property in a manner acceptable to the Township has been completed
in accordance with all applicable codes and regulations of the Township;
and
(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 Code 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 of Tobyhanna 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 of the Township of Tobyhanna shall
transmit a certified copy of this article promptly to 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 be sentenced,
upon conviction thereof, to pay a fine not greater than $600, plus
costs, and, in default of payment of said fine and costs, to a term
of imprisonment not to exceed 30 days. Each day in which an offense
shall continue shall be deemed a separate offense.
