[HISTORY: Adopted by the Board of Supervisors of the Township
of Middletown as indicated in article histories. Amendments noted
where applicable.]
[Adopted 11-9-1999 by Ord. No. 99-18 (Ch. 7, Part 3, of the
1992 Code)]
No insurance company, association or exchange ("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 of Middletown where the amount recoverable for the fire loss
to the structure under all policies exceeds $7,500, unless the insurer
is furnished by the Township's Treasurer 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, and unless there is compliance
with the procedures set forth in § 508(c) and (d) of the
Act.[1]
[1]
Editor's Note: See 40 P.S., § 638.
A.
Where there are delinquent taxes, assessments, penalties or user
charges against the property ("Township claims"), or there are expenses
which the Township has incurred as costs for the removal, repair or
securing of a building or other structure on the property ("Township
expenses"), the Township Manager shall immediately render a bill for
such work, if he/she has not already done so.
B.
Upon written request of the named insured, which request must specify
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 Township Treasurer shall furnish a certificate within 14 working
days after the request to the insurer; the certificate (or at his
discretion an oral notification confirmed in writing) either:
(1)
Stating that there are no unpaid Township claims or Township
expenses against the property; or
(2)
Specifying the nature and amount of such claims or expenses,
accompanied by a bill for such amounts. 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.
When all Township claims and Township expenses have been paid pursuant to § 283-102, or where the Treasurer has issued a certificate described in § 282-102B indicating that there are no Township claims or Township expenses against the property, the insurer shall pay the claim of the named insured; provided, however, 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:
A.
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.
B.
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 less than the amount calculated under
the foregoing transfer formula, the insurer shall transfer to the
Treasurer 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 structures.
C.
Upon receipt of the above-described portion of the insurance proceeds,
the Treasurer shall do the following:
(1)
Place the proceeds in a separate fund to be used solely as security
against the total Township 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
relating thereto.
(2)
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 section shall be followed.
(3)
After the transfer, the named insured may submit to the Township
a contractor's signed estimate of the costs of removing, repairing
or securing the building or other structure, in which event the Treasurer
shall, if such estimate is deemed by the Treasurer to be reasonable,
return to the insured the amount of the funds transferred to the Township
in excess of that required to pay the Township expenses, provided
the Township has not commenced to remove, repair or secure the building
or other structure, in which case the Township will complete the work.
(4)
Pay to the Township Manager for reimbursement to the Township
general fund the amount of the Township expenses paid by the Township.
(5)
Pay the remaining balance in the funds (without interest) to
the named insured upon receipt of a certificate issued by the Building
Inspector or Director of Licenses and Inspections 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.
D.
Nothing in this section shall be construed to limit the ability of
the Township to recover any deficiency in the amount of Township claims
or Township expenses recovered pursuant to this article or to insurance
proceeds by an action at law or equity to enforce the codes of the
Township or enter into an agreement with the named insured with regard
to such other disposition of the proceeds as the Township may deem
reasonable.
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 liable, upon summary conviction,
to fines and penalties not exceeding $1,000, in addition to any other
recovery allowed by law, which fines and penalties may be collected
by suit or summary proceeding brought in the name of the Township
before any Magisterial District Judge or recovered as debts of the
like amount are now by law recoverable.
