[HISTORY: Adopted by the Board of Supervisors
of the Township of Athens as indicated in article histories. Amendments
noted where applicable.]
[Adopted 2-27-2002 by Ord. No. 169]
A.
No insurance company, association, or exchange (hereafter
"insurer") doing business in the Commonwealth of Pennsylvania shall
pay a claim of a named insured for fire damage to a structure located
in the Township of Athens, Bradford County, Pennsylvania, where the
amount recoverable for the fire loss to the structure under all policies
exceeds $7,500, unless the insurer is furnished by the Treasurer of
Athens Township with a certificate pursuant to § 508(b)
of the Insurance Company Law of 1921, as amended by Act 98 of 1992
and Act 93 of 1994 (collectively, the "Act") and unless there is compliance
with the procedure set forth in Sections 508(c) and 508(d) of the
Act.
B.
In the event that there are delinquent taxes, assessments,
penalties, or user charges against the property (hereinafter "municipal
claims") or there are expenses which the Township has incurred as
costs for removal, repair, or securing of a building or other structure
on the property (collectively "municipal expenses"), the Secretary
of the Township shall immediately render a bill for such work, if
not already done. Upon written request of the named insured specifying
the description of the property, the name and address of the insurer,
and the date of receipt by the insurer of a loss report of the claim,
the Treasurer of the Township shall furnish a certificate within 14
days after the request of the insurer either:
C.
Taxes, assessments, penalties, and surcharges shall be deemed delinquent for this purpose if a lien should have been filed for such claims under applicable law. Upon receipt of a certificate and bill pursuant to Subsection B(2) of this section, the insurer shall transfer to the Secretary of the Township an amount from the insurance proceeds sufficient to pay said sums prior to making payment to the named insured, subject to the provisions of § 97-3 hereof.
D.
When all municipal claims and municipal expenses have
been paid pursuant to this section or when the Township Treasurer
has issued a certificate described herein, indicating that there are
no municipal claims or municipal expenses against the property, the
insurer shall pay the claim of the named insured; provided, however,
that if the loss agreed upon by the named insured and the insured
equals or exceeds 60% of the aggregate amounts of liability on all
fire policies covering the building or structure, the following procedures
must be followed:
(1)
The insurer shall transfer from the insurance proceeds
to the Township Treasurer in the aggregate amount $2,000 for each
$15,000 of such claim or fraction thereof.
(2)
If at the time a loss report is submitted by the insured,
such insured has submitted to the insurer, with a copy to the Township,
a contractor-signed estimate of the cost of removing, repairing, or
securing the building or other structure in an amount less than the
amount calculated under the foregoing transfer formula, the insured
shall then transfer to the Secretary of the Township of Athens from
the insurance proceeds the amount specified in the estimate. If there
is more than one insurer, the transfer of proceeds shall be on a prorated
basis by all insurers insuring the building or other structure.
(3)
Upon receiving the above-described portion of the
insurance proceeds, the Secretary of the Township of Athens shall
do the following:
(a)
Place the proceeds in a separate fund to be used solely
as security against the total municipal expenses as anticipated by
the Township to be required in removing, repairing, or securing the
building or structure as required by this article. Such costs shall
include, without limitation, any engineering, legal or administrative
costs incurred by the Township in connection with such a removal,
repair, or securing or any proceedings related thereto;
(b)
Mail to the named insured at the address received
from the insurer a notice that the proceeds have been received by
the Township and that the procedures under this section of the article
have been followed;
(c)
After the transfer, the named insured may submit to
the Township of Athens a contractor's signed estimate of the cost
of removing, repairing, or securing the building or structure, in
which event the Township Secretary shall, if such estimates are deemed
by the Township Secretary to be reasonable, return to the insured
the amount of the funds transferred to the Township of Athens in excess
of that amount required to pay the municipal expenses; provided, however,
that the Township has not commenced to remove, repair, or secure the
building or other structure, in which case the Township shall complete
the work;
(d)
Pay to the Treasurer of the Township, for reimbursement
to the Township general fund, the amount of municipal expenses paid
by the Township;
(e)
Pay the remaining balance in the fund without interest
to the named insured upon receipt of a certificate issued by the Township
Secretary that the repair, removal, or security of the building or
other structure has been completed in accordance with all applicable
codes and regulations of the Township;
(f)
Nothing in this section shall be construed to limit
the ability of the Township to recover any deficiency in the amount
of municipal claims or municipal expenses recovered pursuant to this
article or to insurance proceeds by an action at law or equity to
enforce the Township Code or to enter into an agreement with a named
insured with regard to such disposition of the proceeds as the Township
may deem appropriate.
Nothing in this article shall be construed to
make an insurance company, association, or exchange liable for any
amount in excess of proceeds payable under its insurance policy or
for any other act performed pursuant to this article or to make the
Township of Athens or any public official of the Township an insured
under a policy of insurance or to create an obligation to pay delinquent
property taxes or unpaid removal liens or expenses other than as provided
in this article.
An insurance company, association, or exchange
making payment of policy proceeds under this article for delinquent
taxes or structural removal liens or removal expenses incurred by
the Township of Athens shall have full benefit of such payment, including
all rights of subrogation and of assignment.
This article shall be construed to accomplish
its purpose and to deter the commission of arson-related crimes, to
discourage the abandonment of property and to prevent urban blight
and deterioration.
The Secretary of the Township of Athens shall
transmit a certified copy of this article promptly upon its enactment
to the Pennsylvania Department of Community and Economic Development.
Any owner of property, any named insured or
insurer who violates the provisions of this article or fails to comply
with any of the requirements hereof shall be sentenced, upon conviction
thereof, to pay a fine not more than $1,000, plus costs, and in default
of payment of said fine and costs to undergo a term of imprisonment
not to exceed 30 days. Each day in which an offense shall continue
shall be deemed a separate offense.
