[HISTORY: Adopted by the Board of Supervisors
of the Township of Potter as indicated in article histories. Amendments
noted where applicable.]
[Adopted 8-11-1999 by Ord. No. 77]
This article shall be known and may be cited
as the "Fire Insurance Proceeds Ordinance."
The following words and phrases when used in
this article shall have, unless the context clearly indicates otherwise,
the meanings given to them in this section:
The date agreed to by the insurer and insured as the date
of receipt of a proof of loss of a claim for fire loss to a property
or structure.
The total costs for repairs, removal or securing of a structure
thereof agreed to by a contractor including, but not limited to, all
of the following:
All costs for repairs, removal or securing of a structure
thereof actually incurred by the Township, including, but not limited
to, all of the following:
Every individual, person, firm and corporation identified
by name in a policy of insurance insuring against losses sustained
on account of fire to which this article applies.
Every insurance company, association, exchange, and other
entity doing business within the Commonwealth of Pennsylvania insuring
and paying a claim for fire damage sustained by a building or structure
located within the Township.
Fire damage sustained by any structure or building situate
within the Township.
The total value of all municipal taxes, assessments, claims,
user charges, penalties, interests and costs of collection owed to
the Township.
Includes an individual, firm, corporation and other entity.
A piece, parcel or tract of real estate located in the Township,
including every structure thereon.
Every building or other structure located upon property located
in the Township.
The tax parcel identification number assigned from time to
time to the property by the Tax Assessment Office of Beaver County,
Pennsylvania.
Section 508 of the Insurance Company Law of 1921, as amended,
40 P.S. § 638.
The Township of Potter, Beaver County, Pennsylvania.
The duly elected Real Estate Tax Collector of the Township.
No insurer shall pay a claim of an insured for
fire damage to any property or structure located within the Township
where the amount recoverable for the fire loss to the property and
structure under all policies exceeds $7,500 unless and until the insurer
complies with each of the following requirements:
Upon the written request of the named insured,
signed by every named insured, identifying the property, the name
and address of the insurer, and the agreed proof of claim date, the
Township Treasurer shall furnish the named insured, who shall then
forward to the insurer either:
B.
A certificate and bill showing:
(1)
As of the date specified in the request, the amount,
if any, of all delinquent municipal claims against the property that
have not been paid as of the date of the certificate; and
(2)
As of the date of the certificate, the amount, if
any, of all fire costs against the property that have been incurred
by the Township.
A.
Upon the receipt of a certificate issued by the Township Treasurer to an insured pursuant to § 123-3A of this article and/or Section 508(b)(1)(i) of the Act,[1] the insurer may pay the claim of the insured in accordance
with the policy terms, unless the loss agreed to between the insured
and the insurer equals or exceeds 60% of the aggregate limits of liability
on all fire insurance policies covering the property or structure.
[1]
Editor's Note: See 40 P.S. § 638(b)(1)(i).
B.
Upon the receipt of a certificate and bill pursuant to § 123-3B of this article and/or Section 508(b)(1)(ii) of the Act,[2] the insurer shall return the bill to the Township Treasurer
and transfer to the Township Treasurer the lesser of the following
amounts:
(2)
The total amount of the insurance proceeds, unless
the loss agreed to between the insured and the insurer equals or exceeds
60% of the aggregate limits of liability on all fire insurance policies
covering the property or structure.
(3)
The Township Treasurer shall receive the amount and
apply and credit it to payment of the items shown in the bill.
[2]
Editor's Note: See 40 P.S. § 638(b)(1)(ii).
C.
In the case such a loss equals or exceeds 60% of the aggregate limits of liability on all fire insurance policies covering the property or structure, the insurer shall follow the procedures set forth in § 123-6 of this article and Sections 508(c) and (d) of the Act.[3]
[3]
Editor's Note: See 40 P.S. § 638(c)
and (d).
A.
When the loss agreed to between the insured and the
insurer equals or exceeds 60% of the aggregate limits of liability
on all fire insurance policies covering the property or structure,
the insurer shall transfer to the Township Treasurer from the insurance
proceeds the amount required to pay all of the following:
(2)
As of the agreed proof of claim date either:
(a)
If the named insured has submitted a written
estimate from and signed by a contractor estimating the total contractor
fire costs against the property, the amount specified in the written
estimate; or
(b)
If the named insured has not submitted a written
estimate from and signed by a contractor estimating the total contractor
fire costs against the property, in the aggregate $2,000 for each
$15,000 and each fraction of that amount of the claim.
B.
The transfer of proceeds shall be on a pro rata basis
by every insurer insuring the property and/or structure. The insurance
policy proceeds remaining after the transfer to the Township Treasurer
may be disbursed in accordance with the policy terms or Section 508(c)
of the Act.
C.
At the time the insurer transfers to the Township
Treasurer any insurance proceeds, the insurer shall also provide the
Township Treasurer with the name and address of every named insured.
A.
Upon receipt of fire insurance proceeds as contemplated
by this article and the Act, the Township Treasurer shall do all of
the following:
B.
Every fund shall comply with the following requirements:
(1)
A separate account must be established for each insured
fire loss, provided that in the event the amount received for any
one loss is in excess of the amount that may be federally insured
by any one institution, then the amount received shall be placed so
that the entire amount received, and any interest thereafter earned,
may be fully insured.
(2)
The account shall bear the name of each insured followed
by the identifier "Fire Escrow Fund";
(3)
The account shall contain the social security number
or the federal tax identification number, if applicable, of one of
the named insureds;
(4)
Until the proceeds are disbursed according to the
provisions of this article or the provisions of the Act, all interest
earned on said proceeds shall remain in said account or accounts and
shall be available to pay any of the total fire costs against the
property incurred by the Township; and
(5)
No account may be established or funds placed with
any institution having a mortgage or judgment lien against the real
estate.
Upon receipt of any insurance proceeds by the
Township Treasurer pursuant to this article or Section 508(d) of the
Act, the Township Treasurer shall notify every named insured in writing
at the last known address of the insured, as supplied by the insurer
making said transfer, all of the following:
A.
If the Township has incurred any fire costs against
the property, all such fire costs shall be paid from the fund.
B.
All funds held by the Township Treasurer pursuant
to the provisions of this article and the Act, exclusive of all municipal
claims against the property, all fire costs against the property,
as shown on said bill, and all fire costs against the property after
submission of said bill, shall be returned to the insured when satisfactory
proof has been submitted to the Township Treasurer of all of the following:
A.
In the event that the amount of the fund held by the
Township Treasurer, including interest thereon, is insufficient to
pay the entire amount of the fire costs against the property incurred
by the Township, the Township shall, and is hereby authorized to,
with or without further notice, commence any and all legal action
at law and/or equity against every insured, and every person claiming
or having an ownership interest in and to the property, for the balance
of entire amount of the fire costs against the property incurred by
the Township.
B.
In the event that the Township does commence a legal
action at law and/or equity against any insured, and/or any person
claiming or having an ownership interest in and to the property, the
Township is authorized to collect in addition to the balance of the
entire amount of fire costs against the property incurred by the Township,
all attorneys' fees actually incurred by the Township in the prosecution
of said action and all expenses and costs thereof in addition to any
other amounts recoverable by law.
In the event the insured shall submit to the
Township Treasurer a written estimate from and signed by a contractor
estimating the total contractor fire costs against the property after
the insurer makes a transfer to the Township Treasurer from the insurance
proceeds and the escrow fund has been established, the Township Treasurer
shall return to the insured the amount of the fund in excess of the
written estimate of the total contractor fire costs so submitted by
the insured upon the following conditions:
A.
The Township has not commenced to remove, repair or
secure the property or structure; and
B.
Satisfactory proof has been submitted to the Township
Treasurer, by inspection or otherwise, that the contractor who submitted
the written estimate has commenced removing, repairing or securing
the property or structure.
Notwithstanding any provision of this article
or the Act, the Board of the Township, any insured, and/or any person
claiming or having an ownership interest in the property may enter
into a written agreement that permits the transfer of the escrow fund
held by the Township as security for the total costs of removing,
repairing, or securing the property or structure from the Township
Treasurer to or for the benefit of the named insured upon terms and
conditions satisfactory to the Board of the Township.
The contents of the application for a certificate
submitted to the Township Treasurer by the insured for a certificate
or a certificate and bill to be issued pursuant to this article, shall
contain all information requested by the Township Treasurer, which
shall include, but not be limited to, the following:
A.
Full, legal name of every insurer;
B.
Complete mailing address for every insurer;
C.
Every claim number assigned by each and every insurer;
D.
Date of fire loss;
E.
Agreed proof of claim date (date agreed upon by the
insurer and the insured as the date of the receipt of a proof of loss
of the claim);
F.
Proper name of every named insured as contained in
every policy applicable;
G.
Complete mailing address for every named insured;
H.
Every known telephone number of each named insured;
I.
Tax parcel number of the property;
J.
Beaver County Deed Book volume(s) and page(s) for
the property;
K.
Complete legal name and mailing address of every mortgage
and judgment lien holder; and
L.
Such other information as may be determined from time
to time by the Township Treasurer in order to implement the provisions
of this article.
The Township Engineer and/or the Township Code
Enforcement Officer shall perform every inspection required to be
done or performed by this article or the Act to confirm the completion
or failure to complete any act by an insured or any contractor of
an insured, and the costs thereof shall be paid by the insured from
the fund held by the Township Treasurer as costs and as provided by
this article.
Whenever any report of an inspection performed
by the Township Engineer and/or the Township Code Enforcement Officer
pursuant to this article or any other inspection finds or discloses
that the property and/or structure involved in the loss requires removal,
repair or securing, the Township shall notify every named insured
of all of the following:
A.
The fact of that an inspection occurred;
B.
The date said inspection occurred;
C.
The contents of the report of inspection, including
any recommendations concerning corrective action required to be done;
D.
The date by which the insured must commence corrective
action to remove, repair or secure the structure;
E.
The date by which the insured must complete corrective
action to remove, repair or secure the structure;
F.
Notice that the Township shall undertake and perform
all corrective action in the event the insured shall fail to commence
corrective action by the corrective action commencement date;
G.
Notice that the Township shall complete all corrective
action in the event the insured shall fail to complete corrective
action by the corrective action commencement date; and
H.
Notice that the Township shall collect all costs as
provided in this article.
In the event that the insured fails to commence
the corrective action required by the report of inspection of the
Township Engineer and/or the Township Code Enforcement Officer and/or
any other person authorized by the Township by the corrective action
commencement date contained in the notice to be given pursuant to
this article, the Township may, without further notice to the insured,
and without the necessity of securing bids therefore, commence corrective
action for the removal, repairing or securing of the property and/or
structure by either using Township employees and equipment or entering
into contracts with third parties or both.
A.
Every notice pursuant to this article shall be served
upon every named insured by depositing same in the United States Mail,
either certified mail, return receipt requested, or first class mail,
addressed to the address of the insured as follows:
B.
Every notice shall be conclusively deemed to be received
by every insured and every person claiming an ownership interest in
the property upon deposit of the notice in the mail addressed to the
insured.
When any property or structure within the Township
is damaged by fire and in the opinion of the Chief of the Volunteer
Fire Department (Fire Chief) the amount of the damage amounts to at
least $7,500, the Fire Chief shall deliver a report of damage to the
Township Treasurer, which report shall include the identity of every
owner thereof and every insurer known to the Fire Chief.
The Township is hereby authorized to adopt resolutions
from time to time to fix reasonable fees to be charged for certificates,
certificates and bills, performance of inspections and opening separate
fund accounts.
This article shall be liberally construed to
accomplish its purpose to deter to the commission of arson and related
crimes, to discourage the abandonment of property, and to prevent
blight and deterioration.
