[HISTORY: Adopted by the Board of Supervisors
of the Township of Hellam 2-16-1995 by Ord. No. 1995-2. Amendments noted where
applicable.]
This chapter shall be known as and may be cited
as the "Hellam Township Fire Loss Control Ordinance."
The Board of Supervisors of the Township of
Hellam, York County, Pennsylvania, has determined that it is in the
best interest of the health, safety and welfare of the citizens and
inhabitants of Hellam Township to enact this chapter adopting the
provisions and requirements relating to the payment of certain insurance
loss claims as provided in Act No. 1992-98 of the General Assembly
of the Commonwealth of Pennsylvania,[2] as amended, as hereinafter provided.
As used in this chapter, the following terms
shall have the meanings indicated:
The person duly appointed by Hellam Township Board of Supervisors
from time to time to carry out the duties and responsibilities imposed
pursuant to this chapter. Initially, the Designated Officer shall
be the Township Secretary.
Hellam Township, York County, Pennsylvania.
The person duly appointed by Hellam Township Board of Supervisors
as the Township Treasurer from time to time.
From and after the effective date of this chapter,
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, as amended, and
in accordance with the provisions of this chapter and the following
requirements and procedures:
A.Â
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 C and D of this section.
B.Â
Municipal Treasurer.
(1)Â
The Municipal Treasurer shall, upon the written request
of the named insured specifying the tax description of the property,
name and address of the insurance company, association or exchange
and the date agreed upon by the insurance company, association or
exchange and the named insured as the date of the receipt of a loss
report of the claim, furnish the insurance company, association or
exchange either of the following within 14 working days of the request:
(a)Â
A certificate or, at the discretion of the municipality,
a verbal notification which shall be confirmed in writing by the insurer
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 Treasurer's certificate
or verbal notification, no 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)Â
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 Treasurer's certificate, the amount of the total costs,
if any, certified to the 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 Treasurer the total amount,
if any, of such costs. 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 municipality under applicable
law.
(2)Â
Insurance company.
(a)Â
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)Â
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 treasurer and transfer to the 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.Â
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 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 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 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.
D.Â
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 section 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.
[Amended 9-5-1996 by Ord. No. 1996-6]
Any person, partnership or corporation who or
which shall violate any provision of this chapter shall, upon being
found liable therefor in a civil enforcement proceeding commenced
by Hellam Township, pay a fine not exceeding $600 plus all court costs,
including reasonable attorneys' fees incurred by Hellam Township.
Hellam Township police officers, the appropriate enforcement officers
of Hellam Township, or other appropriate officer or officers of Hellam
Township shall have the power to enforce the provisions of this chapter.
The amount of the fine imposed for the violation of this chapter shall
be established by the officer who determines that a violation has
occurred. Notice of the violation of this chapter and the amount of
the fine imposed shall be given by personal delivery or by certified
mail to the person violating this chapter. If the person violating
this chapter fails or refuses to pay the fine imposed within the period
specified in the notice of the violation of this chapter, the Township
shall file a civil enforcement proceeding with the Magisterial District
Judge to enforce the fine imposed. Any violation of this chapter shall
be deemed a separate offense for each and every day such violation
shall continue shall be subject to the penalties above imposed for
each and every separate offense.
