[Ord. 656, 4/9/2015]
This Part shall be known and may be cited as the "Fire Insurance
Claim Ordinance."
[Ord. 656, 4/9/2015]
The Township, through provisions of this Part, hereby incorporates
the provisions of § 638 of the Insurance Company Law, 40
P.S. § 638, as amended, which provides the Township with
the authority to require security in the form of insurance proceeds
from an insurance company, association or exchange (hereinafter the
"insuring agent"), doing business in Pennsylvania, for the removal,
repair and securing of fire damaged buildings and other structures
subject to fire loss claims.
[Ord. 656, 4/9/2015]
[Ord. 656, 4/9/2015]
No insurance agent shall pay a claim of a named insured for
fire damage to a structure located within the Township where the amount
recoverable for the fire loss to the structure under all policies
exceeds $7,500 unless the insurance agent is furnished with a municipal
certificate from the Board of Supervisors pursuant to § 638(b)
of the Insurance Company Law, 40 P.S. § 638, as amended,
and unless there is compliance with the provisions of this Part.
[Ord. 656, 4/9/2015]
1.
Issuance of Certificate Where Delinquent Taxes or Charges are Due
and/or Costs Have Been Incurred by Township Related to the Fire Damaged
Building or Structure. Where pursuant to § 638(b)(1)(ii)
of the Insurance Company Law, 40 P.S. § 638, as amended,
the Township Treasurer is requested to issue a certificate to the
insurance agent regarding property that is subject to delinquent taxes,
assessments, penalties and user charges, the Township Treasurer shall,
within 14 days of the request, issue such certificate along with a
bill showing the amount of delinquent taxes, assessments, penalties
and user charges against the subject property that have not been paid
as of the date of the Treasurer's certificate and also showing,
as of the date of the Township Treasurer's certificate, the amount
of the total costs, if any, certified to the Township Treasurer that
have been incurred by the Township for the removal, repair or securing
of a damaged building or other structure on the property.
A.
The Township shall be responsible for certifying to the Township
Treasurer any such costs incurred by the Township for removal, repair
or securing of a damaged building or other structure on the property.
B.
The insuring agent shall, upon receipt of such certificate and bill,
return the bill to the Township Treasurer and transfer to the Township
Treasurer an amount from the insurance proceeds necessary to pay the
taxes, assessments, penalties, charges and costs as shown on the bill.
C.
The Township shall, upon receipt of such amount, apply or credit
the amount to payment of the items shown on the bill.
2.
Issuance of Certificate Where No Delinquent Taxes or Charges Are Due and No Costs Have Been Incurred by Township Related to the Fire Damaged Building or Structure. Where pursuant to § 638(b)(1)(i) of the Insurance Company Law, 40 P.S. § 638, as amended, the Township Treasurer is requested to issue a certificate to the insurance agent, or, at the discretion of the Township Treasurer, a verbal notification confirmed in writing by the insurance agent, regarding property that is not subject to delinquent taxes, assessments, penalties or user charges, the Township Treasurer shall issue such a certificate which indicates that there are no delinquent taxes, assessments, penalties or user charges against the property, and that as of the date of the Township Treasurer'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 damaged building or other structure on the property, and the insurance agent shall pay the claim of the named insured, provided however, that if the loss as agreed upon by the named insured and the insurance agent equals or exceeds 60% of the aggregate limits of liability on all fire policies covering the building or other structure, the insurance agent shall transfer proceeds, as security, to the Township in accordance with Subsections 3 and 4, which conform to § 638(c) and (d) of the Insurance Company Law, 40 P.S. § 638, as amended.
3.
Transfer of Proceeds. In accordance with § 638(c) of the
Insurance Company Law, 40 P.S. § 638, as amended, the insurance
agent shall transfer from the insurance proceeds, as security, to
the Township Treasurer:
A.
An amount in the aggregate of $2,000 for each $15,000 of a fire loss
claim and for each fraction thereof, however if the amount of such
claim is $15,000 or less, the amount transferred to the Township shall
be $2,000.
B.
If at a time of the 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 that is in an amount less
than the above formula, the insuring agent shall transfer to the Township
the amount specified in the estimate.
4.
Pro Rata Transfer. The transfer of proceeds shall be on a pro rata
basis by all companies, associations or exchanges insuring the damaged
building or structure.
5.
Post Transfer Contractor's Estimate. After the transfer of proceeds,
the named insured may submit a contractor's signed estimate of
the costs of removing, repairing or securing the damaged building
or other structure, and the Township Treasurer shall return the amount
of secured proceeds in excess of the estimate to the named insured,
if the Township has not otherwise commenced removing, repairing or
securing the damaged building or other structure.
6.
Accounting Procedure for Transferred Proceeds. Upon receipt of security
under this section, the Township shall conform to the following procedure,
pursuant to § 638(d) of the Insurance Company Law, 40 P.S.
§ 638, as amended:
A.
The Township Treasurer shall place the proceeds in a separate fund
to be used solely as security against the total costs of removing,
repairing, or securing the damaged building or structure incurred
by the Township. Such costs shall include, without limitation, any
engineering, legal or administrative costs incurred by the Township
in connection with such removing, repairing or securing of the building
or any procedure related thereto.
B.
When transferring the proceeds, it is the obligation of the insurance
agent to provide the Township with the name and address of the named
insured, whereupon the Township Treasurer 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 section
and § 638(d) of the Insurance Company Law, 40 P.S. § 638,
as amended shall be followed.
C.
The proceeds shall only be returned to the named owner upon the following
stated occurrences: the damaged building or other structure has been
properly repaired, removed or secured in accordance with all applicable
laws, regulations and requirements of the Township; the requisite
proof of such completion has been received by the Township Treasurer;
and the Township has not incurred any costs associated with repairing,
removing or securing the damaged building or other structure.
D.
If the Township has incurred costs associated with repairing, removing
or securing the building or other structure, such costs shall be paid
from the secured funds. If excess funds remain, the Township Treasurer
shall transfer the remaining funds to the named insured.
E.
Any interest earned on proceeds held by the Township that are not
returned to the named insured shall belong to the Township. Any interest
earned on proceeds that are returned to the named insured shall be
distributed to the named insured at the time said proceeds are returned.
7.
Township's Ability to Recover Deficiency. Nothing in this Part
shall be construed to limit the ability of the Township to recover
any deficiency.
8.
Agreement with Named Insured. Nothing in this subsection shall be
construed to prohibit the Township and the named insured from entering
into an agreement which permits the transfer of funds to the named
insured if some other reasonable disposition of the damaged property
has been negotiated.
[Ord. 656, 4/9/2015]
The Board of Supervisors may by resolution adopt procedures
and regulations to implement § 638 of the Insurance Company
Law, 40 P.S. § 638, as amended, and this Part, and may by
resolution fix reasonable fees to be charged for municipal activities
or services provided pursuant to § 638 of the Insurance
Company Law, 40 P.S. § 638, as amended, and this Part including,
but not limited to, issuance of certificates and bills, performance
of inspections and opening separate fund accounts.
[Ord. 656, 4/9/2015]
Any person, firm, or corporation who shall violate any provision
of this Part, or fails to comply therewith, or with any of the requirements
thereof, upon conviction thereof in an action brought before a magisterial
district judge in the manner provided for the enforcement of summary
offenses under the Pennsylvania Rules of Criminal Procedure, shall
be sentenced to pay a fine of not less than $100 nor more than $1,000
plus costs, including reasonable attorney fees incurred by the Township,
and, in default of payment of said fine and costs, to a term of imprisonment
to the extent permitted by law for the punishment of summary offenses.
A separate offense shall arise for each day or portion thereof in
which a violation of this Part is found to exist and for each section
of this Part found to have been violated. The Township may also commence
appropriate actions in equity or other to prevent, restrain, correct,
enjoin, or abate violations of this Part. All fines and penalties
collected for violations of this Part shall be paid to the Township
Treasurer. The initial determination of ordinance violation is hereby
delegated to the Township Manager, Police Department, the Code Official,
the authorized designee of the Township Manager, and to any other
officer or agent that the Township Manager or the Board of Supervisors
shall deem appropriate.