Township of Hampton, PA Insurance

The Township Manager of the Township of Hampton or such official's designee is hereby appointed as the designated officer who is authorized to carry out all responsibilities and duties stated herein.

[Amended 1-25-1995 by Ord. No. 500]

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 Township of Hampton (hereinafter the "Township") where the amount recoverable for the fire loss to the structure under all policies exceeds $7,500, unless the insuring agent is furnished by the Township Manager with a municipal certificate pursuant to § 508(B) of Act 98 of 1992,[1] and unless there is compliance with § 508(C) and (D) of Act 98 of 1992 and the provisions of this article.

[1]

Editor's Note: See 40 P.S. § 638.

[Amended 1-25-1995 by Ord. No. 500]

The Township Manager shall, upon the written request of the named insured, specifying the tax description of the property, name and address of the insurance company, association or exchange and the date agreed upon by the insurance company, association or exchange and the named insured as the date of the receipt of a loss report of the claim, furnish the insurance company, association or exchange either of the following within 14 working days of the request:

A.

A certificate or, at the discretion of the Township Manager, a verbal notification which shall be confirmed in writing by the insurer to the effect that, as of the date specified in the request, there are no delinquent taxes, assessments, penalties or user charges against the property and that, as of the date of the Manager's certificate or verbal notification, the Township has not certified any amount as total costs incurred by the Township for the removal, repair or securing of a building or other structure on the property.

B.

A certificate and bill showing the amount of delinquent taxes, assessments, 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 also showing, as of the date of the Manager's certificate, the amount of the total costs, if any, certified to the Manager that have been incurred by the Township for the removal, repair or securing of a building or other structure on the property. The Township shall certify to the insured the total amount, if any, of such costs. A tax, assessment, penalty or user charge becomes delinquent at the time and on the date a lien could otherwise have been filed against the property by the Township under applicable law.

C.

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 insurance company, association or exchange shall transfer from the insurance proceeds to the Manager of the Township in the aggregate amount $2,000 for each $15,000 and each fraction of that amount of a claim, or, if at the time of loss report the named insured has submitted a contractor's signed estimate of the costs of removing, repairing or securing the building or other structure in an amount less than the amount calculated under the foregoing transfer formula, the insurance company, association or exchange shall transfer from the insurance proceeds the amount specified in the estimate. The transfer of proceeds shall be on a pro rata basis by all companies, associations or exchanges insuring the building or other structure. The named insured may submit a contractor's signed estimate of the costs of removing, repairing or securing the building or other structure after the transfer and the designated officer shall return the amount of the fund in excess of the estimate to the named insured if the Township has not commenced to remove, repair or secure the building or other structure.

D.

Upon receipt of proceeds by the Township as authorized by this section, the Manager shall place the proceeds in a separate fund to be used solely as security against the total cost of removing, repairing or securing incurred by the Township. When transferring the funds as required in the above, an insurance company, association or exchange shall provide the Township with the name and address of the named insured, whereupon the Township shall contact the named insured, certify that the proceeds have been received by the Township and notify the named insured that the procedures under this subsection shall be followed. The fund shall be returned to the named insured when repairs, removal or securing of the building or other structure have been completed and the required proof received by the designated officer if the Township has not incurred any costs for repairs, removal or securing. If the Township 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 Township shall transfer the remaining funds to the named insured. Nothing in this section shall be construed to limit of the Township to recover any deficiency. Further, nothing in this subsection shall be construed to prohibit the Township 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 has been negotiated.

E.

Proof of payment by the insurance company, association or exchange of proceeds under a policy in accordance with the above subsection is conclusive evidence of the discharge of its obligation to the insured under the policy to the extent of the payment and of compliance by the company, association or exchange with the above subsection.

The Township Council may by resolution adopt procedures and regulations to implement Act 98 of 1992 and this article and may by resolution fix reasonable fees to be charged for municipal activities or services provided pursuant to Act 98 of 1992[1] and this article; including, but not limited to, issuance of certificates and bills, performance of inspections and opening separate fund accounts.

[1]

Editor's Note: See 40 P.S. § 638.

[Amended 4-26-1995 by Ord. No. 505]

Any person who shall violate any of the provisions of this article shall, upon conviction thereof, be sentenced to pay a fine of not more than $600 and the costs of prosecution for each violation thereof, and in default of payment of such fine and costs, to undergo imprisonment not more than 30 days. Each day's violation shall constitute a separate offense. The imposition of a penalty shall not excuse the violation or permit it to continue.