[HISTORY: Adopted by the Board of Supervisors of the Township
of Westtown as indicated in article histories. Amendments noted where
applicable.]
[Adopted 5-1-2017 by Ord.
No. 2017-1]
A.
No insurance company, association or exchange (hereinafter "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 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 Treasurer with a municipal certificate
pursuant to Section 508(b) of Act 98 of 1992 as amended, 40 P.S. § 638(b),
and unless there is compliance with Section 508(c) of Act 98 of 1992
as amended, 40 P.S. § 638(c) and the provisions of this
article.
A.
The Township Treasurer or Assistant Treasurer shall, within 14 business
days of the written request of the named insured and receipt of a
certification fee established by resolution of the Board from time
to time, provide a fire loss certificate to the insuring agent specifying:
(1)
The tax description and physical address of the property;
(2)
The name and address of the insuring agent;
(3)
The date agreed upon by the insuring agent and the named insured
as the date of the receipt of a loss report of the claim; and
(4)
The amount of any delinquent taxes, assessments, penalties or user
charges against the property and the amount of any costs incurred
by the Township for the removal, repair or securing of a building
or other structure on the property.
(a)
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 or ordinance.
B.
Upon receipt of a fire loss certificate showing any costs owed, the
insuring agent shall return the bill to the Township Treasurer and
transfer to the Township an amount from the insurance proceeds necessary
to pay the taxes, assessments, penalties, charges and costs shown
on the fire loss certificate. The Township shall receive the amount
and credit it to payment of the items shown in the fire loss certificate.
A.
No 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 Westtown Township under the terms of Section 508(a) of the Insurance Company Law of 1921, as amended, 40 P.S. § 638(a), unless the insuring agent is furnished with a certificate pursuant to § 99-2A of this article and unless there is compliance with the procedures set forth in § 99-2B and § 99-3 of this article.
B.
Where the loss agreed to between the named insured and the insuring
agent is less than 60% of the aggregate limits of liability on all
fire policies covering the building or other structure, the insuring
agent shall pay the claim of the named insured in accordance with
the policy terms.
C.
Where the loss 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 or structure, the following
procedures must be followed:
(1)
The insuring agent shall transfer funds from the insurance proceeds
to the designated officer of the Township 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 Township shall be $2,000; or
(2)
If at the time of a proof of loss 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 structure, the insuring agent shall transfer to
the Township from the insurance proceeds the amount specified in the
estimate.
(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 shall submit a contractor's
signed estimate within 60 days of the costs of removing, repairing
or securing the building or other structure, and the designated officer
shall return the amount of the funds transferred to the Township 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.
(5)
Upon receipt of proceeds under this section, the Township shall do
the following:
(a)
The designated officer shall place the proceeds in a 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 Township. Such costs shall include all reasonable and customary
engineering, legal or administrative costs incurred by the Township
in connection with such removal, repair, or securing of the building
or any proceedings related thereto; and
(b)
It is the obligation of the insuring agent when transferring
the proceeds to provide the Township with the name and address of
the named insured. Upon receipt of the transferred funds and the name
and address of the name 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; and
(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 Township and the required proof of such completion
received by the designated officer:
[1]
If the Township has not incurred any costs for repairs, removal
or securing, including all administrative, personnel, overhead, engineering
and legal costs, the funds shall be returned to the named insured.
[2]
If the Township has incurred costs for repairs, removal or securing
of the building or other structure, including all administrative,
personnel, overhead, engineering and legal costs, the costs shall
be paid from the fund and if excess funds remain, the Township shall
transfer the remaining funds to the named insured.
(6)
Nothing in this section shall be construed to limit the ability of
the Township to recover any deficiency. Furthermore, 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.
A.
Upon the enactment of this article, the Township Secretary shall
file an exact copy of the article with the Department of Community
Affairs together with the name, position and phone number of the municipal
official responsible for compliance with Section 508 of the Insurance
Company Law of 1921, as amended, 40 P.S. § 638.
A.
Any owner of property, any named insured or any insuring agent who
shall be convicted of a violation of any provision of this article
or rule and/or regulation issued pursuant to this article before any
District Justice shall be sentenced to pay a fine of not more than
$1,000 per violation, together with attorneys' fees and the costs
of prosecution, and/or sentenced to a period of imprisonment in the
county jail for a term not to exceed 30 days.
