[HISTORY: Adopted by the City Council of the City of Clairton
as indicated in article histories. Amendments noted where applicable.]
[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.
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.
[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]
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.
