[HISTORY: Adopted by the Borough Council of the Borough of Bath as indicated in article histories. Amendments noted where applicable.]
Fire company — See Ch. 60.
[Adopted 4-3-1995 by Ord. No. 487 (Ch. 87, Art. I, of the 2005 Code of Ordinances)]
The Treasurer of the Borough of Bath or such official's designee is hereby appointed as the designated officer who is authorized to carry out all responsibilities and duties stated herein.
A "fire loss" or claim for fire damages is defined as any loss occurring after the effective date of this article and covered under a policy of fire insurance, including all endorsements or riders to the policy.
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 Bath (hereinafter the "Borough") 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 Borough Treasurer with a municipal certificate pursuant to Section 508(b) of the Insurance Company Law of 1921, as amended (the "Insurance Law"), and § 361-4 of this article, and unless there is compliance with Section 508(c) and (d) of the Insurance Law and the provisions of this article.
Editor's Note: See 40 P.S. § 638(b).
The Borough Treasurer shall, upon the written request of the named insured specifying the tax description of the property, name and address of the insuring agent and 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, furnish the insuring agent either of the following within 14 working days of the request:
A certificate to the effect that, as of the date specified in the request, there are no delinquent taxes, assessments, penalties or user charges against the property and that, as of the date of the Borough Treasurer's certificate, the Borough has not certified any amount as total costs incurred by the Borough for the removal, repair or securing of a building or other structure on the property; or
A certificate and bill showing the amount of delinquent taxes, assessments, penalties and use charges against the property as of the date specified in the request that have not been paid as of the date of the certificate and also showing, as of the date of the Borough Treasurer's certificate, the amount of the total costs, if any, certified to the Borough Treasurer that have been incurred by the Borough for the removal, repair or securing of a building or other structure on the property. For the purposes of this clause, the Borough shall provide to the Borough Treasurer the total amount, if any, of such costs, if available, or the amount of costs known to the Borough at the time of the Borough Treasurer's certificate.
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 Borough under applicable law.
Upon receipt of a certificate pursuant to § 361-4A(1) of this article, the insuring agent shall pay the claim of the named insured in accordance with policy terms, except that if 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 insurance policies covering the building or other structure, the procedures set forth in § 361-7 below shall be followed.
Upon the receipt of a certificate and bill pursuant to § 361-4A(2) of this article, the insuring agent shall return the bill to the Borough Treasurer and transfer to the Borough Treasurer an amount from the insurance proceeds necessary to pay the taxes, assessments, penalties, charges costs as shown on the bill, or the full amount of the insurance proceeds, whichever is the lesser amount. The Borough shall receive the amount and apply or credit it to payment of the items shown in the bill. Further, terms of § 361-7 shall be followed, if applicable. Nothing in this section shall be construed to limit the ability of the Borough to recover any deficiency.
Where pursuant to Section 508(b)i(1)(i) of the Insurance Law and § 361-4A(1) of this article, the Borough Treasurer issues a certificate indicating that there are 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 agreed upon by the named insured and the insuring agent equals or exceeds 60% of aggregate limits of liability on all fire insurance policies covering the building or other structure, the following procedures must be followed:
The insuring agent shall transfer from the insurance proceeds to the Borough Treasurer in 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 shall be $2,000; or
If at the time of a 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 in an amount less than the amount calculated under Subsection A(1) above, the insuring agent shall transfer to the Borough from the insurance proceeds the amount specified in the estimate.
The transfer of proceeds to the Borough shall be on a pro rata basis by all companies, associations or exchanges insuring the building or other structure. Policy proceeds remaining after the transfer to the Borough shall be disbursed in accordance with the policy terms.
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 Borough Treasurer shall return the amount of the funds transferred to the Borough in excess of the estimate to the named insured, if the Borough has not commenced to remove, repair or secure the building or other structure.
Upon receipt of proceeds under this section, the Borough shall do the following:
The Borough 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 building or structure which are incurred by the Borough. Such costs shall include, without limitation, any engineering, legal or administrative costs incurred by the Borough in connection with such removal, repair or securing of the building or any proceedings related thereto;
It is the obligation of the insuring agent, when transferring the proceeds, to provide the Borough 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 Borough Treasurer shall contact the named insured, certify that the proceeds have been received by the Borough and notify the named insured that the procedures under this subsection shall be followed;
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 and the required proof of such completion received by the Borough Treasurer, and if the Borough has not incurred any costs for repairs, removal or securing, the fund shall be returned to the named insured. If the Borough has incurred costs for repairs, removal or securing of the building or other structure, the costs shall be paid from the fund and if excess funds remain, the Borough shall transfer the remaining funds to the named insured;
To the extent that interest is earned on proceeds held by the Borough pursuant to this section and such proceeds are not returned to the named insured, such interest shall belong to the Borough. To the extent that 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.
Nothing in this section shall be construed to limit the ability of the Borough to recover any deficiency. Furthermore, nothing in this subsection shall be construed to prohibit the Borough 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.
The Borough Council may by resolution adopt procedures and regulations to implement Section 508 of the Insurance Law and this article and may by resolution fix reasonable fees to be charged for municipal activities or services provided pursuant to the Insurance Law and this article, including but not limited to issuance of certificates and bills, performance of inspections and opening separate fund accounts.
Editor's Note: See 40 P.S. § 638.
[Amended 11-5-2018 by Ord. No. 2018-678]
Any owner of property, any named insured or any insuring agent who or which violates any provision of this article shall, upon a judicial determination thereof, be subject to a judgment for each such violation of not more than $1,000, reasonable attorney's fees, plus costs of suit. All such sums shall be paid to the Borough of Bath. In addition, court costs and reasonable attorney fees incurred by the Borough in enforcement proceedings shall be assessed against violator and awarded to the Borough.