[HISTORY: Adopted by the Board of Supervisors of the Township of Girard as indicated in article histories. Amendments noted where applicable.]
[Adopted 2-14-1995 by Ord. No. 85]
The Secretary/Treasurer or her designee is hereby appointed as the designated officer authorized to carry out all responsibilities and duties established under Section 508 of the Insurance Company Law of 1921, as amended, and this article.
Editor's Note: See 40 P.S. § 638.
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 of Girard (hereinafter "Township") where the amount recoverable for the fire loss to the building or other structure under all policies of insurance exceeds $7,500, unless the named insured or insuring agent is furnished, within 14 working days, of the request with a certificate or, at the discretion of the Township, a verbal notification by the Township Tax Collector which shall be confirmed, in writing, by the insuring agent pursuant to 40 P.S. § 638(b) and unless there is compliance with 40 P.S. § 638(c) and (d) and the provisions of this article.
Where, pursuant to 40 P.S. § 638(b), the Tax Collector issues a certificate or verbal notification indicating that there are no delinquent taxes, assessments, penalties or user charges against the real property, the insuring agent shall pay the claim of the named insured; provided, however, that if the loss agreed to by the named insured and the insuring agent(s) equals or exceeds 60% of the aggregate limits of liability on all fire policies covering the building or other structures, the following procedures must be followed:
The insuring agent shall transfer from the insurance proceeds to the Township Secretary/Treasurer in the aggregate of $2,000 for each $15,000, and each fraction of that amount of claim; this subsection to be applied such that, if the claim is $15,000 or less, the amount to be transferred to the Township 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 the foregoing transfer formula, the insuring agent shall transfer from the insurance proceeds the amount specified in the estimate.
The transfer of proceeds under this section shall be on a pro rata basis by all insuring agents insuring the building or other structure. Policy proceeds remaining after the transfer to the Township shall be disbursed in accordance with the policy terms.
After the transfer of proceeds to the Township under this section, the named insured may submit a contractor's signed estimate of the costs of removing, repairing or securing the building or other structures, and the Secretary/Treasurer or her designee shall then 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 structures.
Upon receipt of proceeds under § 110-3 of this article, the following provisions shall apply:
The Secretary/Treasurer or her designee shall place the proceeds in a separate fund to be used solely as security against the total cost of removing, repairing or securing the building or other structure which are incurred by the Township. Such costs shall include, without limitation, all engineering, legal or administrative costs incurred by the Township in connection with such removal, repair or securing of the building or other structure and/or to any proceeds related thereto; and
When transferring funds as required in 40 P.S. § 638(c) of the Insurance Company Law and §§ 110-3 and 110-4 of this article, an insuring agent shall provide the Township with the name and address of the named insured. Upon receipt of the funds so transferred and of the name and address of the named insured, the Secretary/Treasurer or her designee 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 article shall be followed; and
When repairs, removal or securing of the building or other structures have been completed in accordance with all applicable regulations and orders of the Township and the required proof of such completion has been received by the Secretary/Treasurer or her designee, and if the Township has not incurred any costs for repairs, removal or securing the building or other structures, the fund shall be returned to the named insured. If the Township has incurred costs for repairs, removal or securing of the building or other structures, such costs shall be paid from the fund and, if excess funds remain, the Township shall transfer the remaining funds to the named insured; and
To the extent that interest is earned on proceeds held by the Township pursuant to this article and not returned to the named insured, such interest shall belong to and be retained by the Township. 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 by the Township.
Nothing in this section shall be construed to limit the ability of the Township to recover any deficiency.
Nothing in this article 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 or to a third party agreeable to the named insured and the Township of some other reasonable disposition of the damaged property has been negotiated.
Where, pursuant to 40 P.S. § 638(b), the Tax Collector issues a certificate and bill showing the amount of delinquent taxes, assessments, penalties and user 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 the total costs, if any, certified to the Tax Collector that have been incurred by the Township for the removal, repair, or securing of a building or other structure on the property, the insuring agent shall return the bill to the Tax Collector and transfer to the Tax Collector an amount from the insurance proceeds necessary to pay the taxes, assessments, penalties, charges and costs as shown on the bill. The Township shall, upon receipt, apply or credit the amount to payment of the items shown on the bill.
The Township of Girard may by resolution adopt procedures and regulations to implement Act No. 98 of 1992, as amended, and this article and may by resolution fix reasonable fees to be charged for municipal activities or services provided pursuant to Act No. 98 of 1992, as amended, and this article, including but not limited to fees for issuance of certificates and bills, performance of inspections and opening of separate fund accounts.
Any owner of property, any named insured and/or any insuring agent who violates or permits a violation of this article shall, upon being found liable therefor in a civil enforcement proceeding commenced by the Township before a Magisterial District Judge, pay a fine of not more than $600, plus all court costs, including reasonable attorney's fees, incurred by the Township in the enforcement of this chapter. No judgment shall be imposed until the date of the determination of the violation by the Magisterial District Judge. If the defendant neither pays nor timely appeals the judgment, the Township may enforce the judgment pursuant to the applicable Rules of Civil Procedure. Each day a violation exists shall constitute a separate offense. Further, the appropriate officers or agents of the Township are hereby authorized to seek equitable relief, including injunction, to enforce compliance herewith.
An exact copy of this article shall be filed with the Department of Community and Economic Development together with the name, position and phone number of the municipal officer responsible for compliance with this article.