[HISTORY: Adopted by the Board of Supervisors
of the Township of Hamilton as indicated in article histories. Amendments
noted where applicable.]
[Adopted 9-7-1999 by Ord. No. 85]
This article shall be known as and may be cited
as the “Hamilton Township Fire Loss Control Ordinance.”
The Board of Supervisors of Hamilton Township,
Adams County, Pennsylvania, has determined that it is in the best
interest of the health, safety and welfare of the citizens and inhabitants
of Hamilton Township to enact this article adopting the provisions
and requirements relating to the payment of certain insurance loss
claims as provided in Act No. 1992-98[1] of the General Assembly of the Commonwealth of Pennsylvania,
as hereinafter provided.
[1]
Editor's Note: See 40 P.S. § 638.
As used in this article, the following terms
shall have the meanings indicated:
The person duly appointed by Hamilton Township Board of Supervisors
from time to time to carry out the duties and responsibilities imposed
pursuant to this article.
Hamilton Township, Adams County, Pennsylvania.
The person duly appointed by Hamilton Township Board of Supervisors
as the Township Secretary/Treasurer from time to time.
From and after the effective date of this article,
it shall be unlawful for any person to pay or cause to be paid the
proceeds of any insurance claim or policy to a named insured except
in compliance with Act No. 1992-98 of the General Assembly of the
Commonwealth of Pennsylvania, enacted July 9, 1992, and in accordance
with the provisions of this article and the following requirements
and procedures:
A.
No insurance company, association or exchange doing business in this commonwealth shall pay a claim of a named insured for fire damage to a structure located within the municipality where the amount recoverable for the fire loss to the structure under all policies exceeds $7,500 unless the insurance company, association or exchange is furnished with a certificate pursuant to Subsection B of this section and unless there is compliance with the procedures set forth in Subsections B and C of this section.
[Amended 9-13-2004 by Ord. No. 108]
B.
(1)
The Municipal Secretary/Treasurer shall, upon the
written request of the named insured specifying the tax description
of the property and the date agreed upon by the insurance company,
association or exchange and the named insured as the date of the receipt
of a proof of loss of the claim, furnish the named insured either
of the following, which shall then be supplied by the named insured
to the company, association or exchange:
(a)
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
Secretary/Treasurer's certificate, the municipality has certified
any amount as total costs incurred by the municipality for the removal,
repair or securing of a building or other structure on the property;
or
(b)
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, as of the date of
the Secretary/Treasurer's certificate, the amount of the total costs,
if any, certified to the Secretary/Treasurer that have been incurred
by the municipality for the removal, repair or securing of a building
or other structure on the property. For the purposes of this subsection,
the municipality shall certify to the Secretary/Treasurer the total
amount, if any, of such costs.
(2)
Payment.
(a)
Upon receipt of a certificate pursuant to Subsection B(1)(a) of this section, the insurance company, association or exchange shall pay the claim of the named insured in accordance with the policy terms, unless the loss agreed to between the named insured and the company, association or exchange equals or exceeds 60% of the aggregate limits of liability on all fire policies covering the building or other structure. In the case of such a loss, the insurance company, association or exchange, the insured property owner and the municipality shall follow the procedures set forth in Subsections C and D of this section.
(b)
Upon the receipt of a certificate and bill pursuant to Subsection B(1)(b) of this section, the insurance company, association or exchange shall return the bill to the Secretary/Treasurer and transfer to the Secretary/Treasurer an amount from the insurance proceeds necessary to pay the taxes, assessments, penalties, charges and costs as shown on the bill. The municipality shall receive the amount and apply or credit it to payment of the items shown in the bill.
C.
When the loss agreed to between the named insured
and the company, association or exchange equals or exceeds 60% of
the aggregate limits of liability on all fire policies covering the
building or other structure, the insurance company, association or
exchange shall transfer from the insurance proceeds to the designated
officer of the municipality in the aggregate of $2,000 for each $15,000
and each fraction of that amount of a claim, or, if at the time of
a proof of loss agreed to between the named insured and the insurance
company, association or exchange 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 insurance
company, association or exchange shall transfer from the insurance
proceeds the amount specified in the estimate. The transfer of proceeds
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 municipality 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 municipality shall be disbursed in accordance with the policy
terms. The named insured may submit a contractor's signed estimate
of the costs of removing, repairing or securing the building or other
structure after the transfer, and the designated officer shall return
the amount of the fund in excess of the estimate to the named insured
if the municipality has not commenced to remove, repair or secure
the building or other structure.
[Amended 9-13-2004 by Ord. No. 108]
D.
Upon receipt of proceeds by the municipality as authorized by this section, the designated officer shall place the proceeds in a separate fund to be used solely as security against the total cost of removing, repairing or securing incurred by the municipality. When transferring the funds as required in Subsection C of this section, an insurance company, association or exchange shall provide the municipality with the name and address of the named insured, whereupon the municipality shall contact the named insured, certify that the proceeds have been received by the municipality and notify the named insured that the procedures under this subsection shall be followed. The fund shall be returned to the named insured when repairs, removal or securing of the building or other structure have been completed and the required proof received by the designated officer if the municipality has not incurred any costs for repairs, removal or securing. If the municipality 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 municipality shall transfer the remaining funds to the named insured. Nothing in this section shall be construed to limit the ability of the municipality to recover any deficiency. Further, nothing in this subsection shall be construed to prohibit the municipality 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.
Any person who violates or permits a violation
of this article shall, upon conviction in a summary proceeding brought
before a District Justice under the Pennsylvania Rules of Criminal
Procedure, be guilty of a summary offense and shall be punishable
by a fine of not more than $1,000, plus costs of prosecution. In default
of payment thereof, the defendant may be sentenced to imprisonment
for a term not exceeding 90 days. Each day or portion thereof that
such violation continues or is permitted to continue shall constitute
a separate offense, and each section of this article that is violated
shall also constitute a separate offense. Hamilton Township police
officers, or other appropriate officer(s) of Hamilton Township, shall
have the power to enforce the provisions of this article. All fines
collected for the violation of this article shall be paid over to
the municipality.
