City of Clairton, PA
Allegheny County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the City Council of the City of Clairton as indicated in article histories. Amendments noted where applicable.]
GENERAL REFERENCES
Financial policies about delinquent accounts — See Ch. 34.
Claim collections — See Ch. 170.
Fees — See Ch. 195.
Fire prevention — See Ch. 199.
[Adopted 11-10-1992 by Ord. No. 1532]
This article may be known and cited as the "Fire Insurance Escrow Ordinance."
[Amended 2-14-1995 by Ord. No. 1592]
The Commonwealth of Pennsylvania has enacted Act 93 of 1994, effective January 11, 1995,[1] which further amends the Insurance Company Law of 1921, as amended,[2] to provide procedures for payment of certain fire loss claims. The Council of the City of Clairton finds it necessary and advisable and declares the purpose of this article to be to deter the commission of arson and related crimes, to discourage the abandonment of property, to prevent urban blight and deterioration and to provide for the collection of delinquent municipal taxes, assessments, penalties and user charges against real estate by adopting this article pursuant to Section 508 of the Insurance Law of 1921, as amended,[3] to provide for the payment of proceeds from certain fire loss claims to the City.
[1]
Editor's Note: See 40 P.S. § 638.
[2]
Editor's Note: See 40 P.S. § 361 et seq.
[3]
Editor's Note: See 40 P.S. § 638.
The City Manager or the City Manager's designee is hereby appointed as the designated officer who is authorized to carry out all responsibilities and duties stated herein.
[Amended 2-14-1995 by Ord. No. 1592]
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 City of Clairton (hereinafter the "City") 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 Financial Officer with a municipal certificate within 14 working days of a request for the same, pursuant to Section 508(b) of Act 93 of 1994[1] and unless there is compliance with Sections 508(c) and (d) of Act 93 of 1994[2] and the provisions of this article.
[1]
Editor's Note: See 40 P.S. § 638(b).
[2]
Editor's Note: See 40 P.S. § 638(c) and (d).
[Amended 2-14-1995 by Ord. No. 1592]
A. 
Where, pursuant to Section 508(b)(1)(ii) of Act 93 of 1994,[1] the Financial Officer issues a certificate and bill for delinquent taxes, assessments, penalties and user charges against the property and also the total costs, if any, incurred by the City for the removal, repair or securing of a building or other structure on the property, the insuring agent shall transfer to the Financial Officer an amount from the insurance proceeds necessary to pay the taxes, assessments, penalties, charges and costs as shown on the bill, which amount shall be applied or credited by the City to payment of the items shown on the bill. 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 City under applicable law.
[1]
Editor's Note: See 40 P.S. § 638(b)(1)(ii).
B. 
Where, pursuant to Section 508(b)(1)(i) of Act 93 of 1994,[2] the Financial Officer issues a certificate or, at the discretion of the City, a verbal notification which shall be confirmed in writing by the insured to the effect that there are no delinquent taxes, assessments, penalties or user charges against the property, the insuring agent shall pay the claim of the named insured; provided, however, that if the loss as agreed upon by the name insured and the insuring agent 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:
(1) 
Amount to be transferred.
(a) 
The insuring agent shall transfer from the insurance proceeds to the designated officer of the City in the aggregate of $2,000 for each $15,000 and each fraction of that amount of a claim; or
(b) 
If, at the time of a loss report, the named insured or insuring agent 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 insuring agent shall transfer to the City from the insurance proceeds the amount specified in the estimate.
[2]
Editor's Note: See 40 P.S. § 638(b)(1)(i).
The City Council may by resolution adopt procedures and regulations to implement Act 98 of 1992[1] and this article and may by ordinance fix reasonable fees to be charged for municipal activities or services provided pursuant to Act 98 of 1992 and this article, including but not limited to issuance of certificates and bills, performance of inspections and opening separate fund accounts.[2]
[1]
Editor's Note: See 40 P.S. § 638.
[2]
Editor's Note: See also Ch. 195, Fees.
Any owner of property, any named insured or any insuring agent who violates this article shall be subject to a penalty of up to $1,000 per violation.
[Added 2-14-1995 by Ord. No. 1592]
A certified copy of this article shall be filed with the Department of Community Affairs.[1]
[1]
Editor's Note: Now the Department of Community and Economic Development, pursuant to Act 58-1996.