[HISTORY: Adopted by the Board of Commissioners of the Township of Upper Chichester 8-11-1994 by Ord. No. 534; amended in its entirety 8-13-1998 by Ord. No. 564 (Ch. 7, Part 7, of the 1987 Code of Ordinances). Amendments noted where applicable.]
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 a structure located within Upper Chichester Township where the amount recoverable for the fire loss to the structure under all policies exceeds $7,500, unless the insurer is furnished by the Upper Chichester 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 (collectively, the "Act") and unless there is compliance with the procedures set forth in 508(c) and (d) of the Act.
Where there are delinquent taxes, assessments, penalties or user charges against the property ("municipal claims"), or there are expenses which Upper Chichester Township has incurred as a cost for the removal, repair or securing of a building or other structure on the property (collectively "municipal expenses"), the Upper Chichester Township Treasurer shall immediately render a bill for such work, if she has not already done so.
Upon written request of the named insurer and the date of receipt by the insurer of a loss report of the claim, the Treasurer shall furnish a certificate within 14 working days after the request, to the insurer, a certificate (or at her discretion an oral notice confirmed in writing) either:
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(1)(a), the insurer shall transfer to the Treasurer an amount from the insurance proceeds sufficient to pay such sums prior to making payment to the named insured, subject to the provisions of Subsection C hereof.
When all municipal claims and municipal expenses have been paid pursuant to Subsection B of this section, or where the Treasurer has issued a certificate described in Subsection B(1)(a) indicating that there are no municipal claims or municipal expenses, the insuring agent shall pay the claim of the named insurer; provided, however, that 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:
The insurer shall transfer from the insurance proceeds to the Treasurer, in the aggregate, $2,000 for each $15,000 of such claim or fraction thereof.
If at the time a loss report is submitted by the insured, such insured has submitted to the insurer, with a copy to Upper Chichester Township, a contractor's signed estimate of the cost of removing, repairing or securing the building or other structure in an amount 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 structure.
Upon receipt of the above-described portion of the insurance proceeds, the Treasurer shall do the following:
Place the proceeds in a separate fund to be used solely as security against the total municipal expenses anticipated by Upper Chichester Township to be required in removing, repairing or securing the building or structure as required by this chapter. Such costs shall include, without limitation, any engineering, legal or administrative costs incurred by Upper Chichester Township in connection with such removal, repair or securing or any proceedings related thereto; and
Mail to the named insured, at the address received from the insurer, a notice the proceeds have been received by Upper Chichester Township and that the procedures under this subsection shall be followed.
After the transfer, the named insured may submit to Upper Chichester a contractor's signed estimate of the cost 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 Upper Chichester Township in excess of that required to pay the municipal expenses; provided, Upper Chichester Township has not commenced to remove, repair or secure the building or other structure, in which case Upper Chichester will complete the work.
Pay to the Upper Chichester Township Treasurer, for reimbursement to the Upper Chichester Township general fund, the amount of the municipal expenses paid by Upper Chichester Township.
Pay the remaining balance in the fund (without interest) to the named insured upon receipt of a certificate issued by the Upper Chichester Township Treasurer that the repair, removal or securing of the building or other structure has been completed in accordance with all applicable codes and regulations of Upper Chichester Township.
Nothing in this section shall be construed to limit the ability of Upper Chichester Township to recover any deficiency in the amount of municipal claims or municipal expenses recovered pursuant to this chapter, or to insurance proceeds, by an action at law or in equity to enforce the codes of Upper Chichester Township or to enter into an agreement with the named insured with regard to such other disposition of the proceeds as Upper Chichester Township may deem responsible.
Nothing in this chapter 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 chapter or to make Upper Chichester Township, any Upper Chichester Township official, a municipality or public official 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 chapter.
An insurance company, association or exchange making payment of policy proceeds under this chapter for delinquent taxes or structure removal of liens or removal expenses incurred by Upper Chichester Township shall have a full benefit of such payment including all rights of subrogation and of assignment.
This chapter 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 Upper Chichester Township shall transmit a certified copy of this chapter promptly to the Pennsylvania Governor's Center for Local Government Services
Any owner of property, any named insured or insurer who violates the provisions of this chapter or who shall fail to comply with any of the requirements hereof shall be sentenced, upon conviction thereof, to a fine of not more than $1,000 plus costs and, in default of payment of said fine and costs, to a term of imprisonment not to exceed 30 days. Each day on which an offense shall continue shall be deemed a separate offense.
The provisions of this chapter, so far as they are the same as those of ordinances enforced immediately prior the enactment of this chapter are intended as a continuation of such ordinances and not as new enactments. The provisions of this chapter shall not affect any act done or liability incurred, nor shall it affect any suit or prosecution pending or to be instituted to enforce any right or penalty or to punish any offense under the authority of any ordinance repealed by this chapter.