Borough of Dalton, PA Chapter 224 Insurance

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

Article I Fire Insurance Claims

[Adopted 5-12-1994 by Ord. No. 5-1994]

§ 224-1 Designated officer.

The Secretary of the Borough of Dalton is hereby appointed as the designated officer who is authorized to carry out all responsibilities and duties stated herein.

§ 224-2 Municipal certificate required; claims payment procedure.

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

[1] Editor's Note: Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. I).

B. Where, pursuant to § 508(B)(1)(I) of Act 98 of 1992, the Secretary issues a certificate indicating that there are no delinquent taxes, assessments, penalties or user charges against real property, the insuring agent shall pay the claim of the named insured; provided however, that if the loss is agreed upon by the named insured and the insuring agent equals or exceeds 60% of the aggregate limits of liability on all fire policies covering the building restructure, the following procedures must be followed:

(1) The insuring agent shall transfer from the insurance proceeds to the Secretary of the Borough of Dalton in the aggregate of $2,000 for each $15,000 of a claim and for each fraction of that amount of a claim, this section to be applied such that, if the claim is $15,000 or less, the amount transferred to the Borough of Dalton shall be $2,000; or[2]

[2] Editor's Note: Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. I).

(2) If at the time of a loss report agreed to between the named insured and the insuring agent the named insured has submitted a contractor's signed estimate of the costs of removing, repairing or securing the building or other structures in an amount less than the amount calculated under the foregoing transfer formula, the insuring agent shall transfer to the Borough of Dalton from the insurance proceeds the amount specified in the estimate.[3]

[3] Editor's Note: Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. I).

(3) The transfer of proceeds shall be on pro rata basis by all companies, associations or exchanges insuring the building or other structure.

(4) After the transfer, the named insured may submit a contractor's signed estimate of the costs of removing, repairing or securing the building or other structure, and the Secretary of the Borough of Dalton shall return the amount of the funds transferred to the Borough of Dalton in excess of the estimate to the named insured, if the Borough of Dalton has not commenced to remove, repair or secure the building or other structure.

(5) Upon receipt of proceeds under this section, the Borough of Dalton shall do the following:

(a) The Secretary of the Borough of Dalton shall place the proceeds in the separate fund to be used solely as security against the total costs of removing, repairing or securing the building or structure which are incurred by the Borough of Dalton. Such costs shall include, without limitation, any engineering, legal or administrative costs incurred by the municipality in connection with such removal, repair or securing of the building or any proceedings related thereto;

(b) It is the obligation of the insuring agent when transferring the proceeds to provide the Borough of Dalton with the name and address of the named insured. Upon receipt of the transferred funds and the name and address of the named insured, the designated officer shall contact the named insured, certify that the proceeds have been received by the Borough of Dalton and notify the named insured that the procedures under this subsection shall be followed;

(c) When repairs, removal or securing of the building or other structure have been completed in accordance with all applicable regulations and orders of the Borough of Dalton and the required proof of such completion received by the Secretary of the Borough of Dalton, and if the Borough of Dalton has not incurred any costs for repairs, removal or securing, the fund shall be returned to the named insured. If the Borough of Dalton has incurred costs for repairs, removal or securing of the building or other structure, the cost shall be paid from the fund, and if excess funds remain, the Borough of Dalton shall transfer the remaining funds to the named insured; and

(d) To the extent that interest is earned on proceeds held by the Borough of Dalton pursuant to this section and not returned to the named insured, such interest shall belong to the Borough of Dalton. To the extent that the proceeds are returned to the named insured, interest earned on such proceeds shall be distributed to the named insured at the time that the proceeds are returned.

(6) Nothing in this article shall be construed to limit the ability of the Borough of Dalton to recover any deficiency. Furthermore, nothing in this article shall be construed to prohibit the Borough of Dalton and the named insured from entering into an agreement that permits the transfer of funds to the named insured or some other reasonable disposition of the damaged property is negotiated.

§ 224-3 Additional regulations.

The governing body may fix reasonable fees to be charged for municipal activities of certificates and bills, performance of inspections and opening separate fund accounts.

§ 224-4 Violations and penalties. [1]

An owner of property, any named insured or any insuring agent who violates this article shall, upon conviction in a summary proceeding under the Pennsylvania Rules of Criminal Procedure, be guilty of a summary offense and shall be punishable by a fine of not more than $1,000, plus court costs and reasonable attorneys' fees incurred by the Borough in the enforcement proceedings. Upon judgment against any person, on default of the payment of the fine or penalty imposed and the costs, the defendant may be sentenced and committed to undergo imprisonment for not more than 30 days, provided that each violation of any provision of this article and each day the same is continued shall be deemed a separate offense.

[1] Editor's Note: Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. I).

§ 224-5 Authority.

This article is enacted by the Borough of Dalton under the authority of the Act of Legislature, February 1, (1966) 1965, P.L. 1656, No. 581, known as the Borough Code, § 1005, as recodified and amended (see now 8 Pa.C.S.A. § 1005), and any other applicable law arising under the laws of the Commonwealth of Pennsylvania.