[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,[1] and this article.
[1]
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:
A.
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
B.
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.
C.
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.
D.
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:
A.
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
B.
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
C.
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
D.
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.
E.
Nothing in this section shall be construed to limit
the ability of the Township to recover any deficiency.
F.
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.
