[HISTORY: Adopted by the City Council of the City of Pottsville:
Art. I, 3-13-1995 as Ord. No. 532; Art. II, 3-13-1995 as Ord. No. 533. Amendments
noted where applicable.]
[Adopted 3-13-1995 as Ord.
No. 532]
The Treasurer of the City of Pottsville or such official's designee
(hereinafter, the "Municipal Officer") is hereby appointed as the designated
officer who is authorized to carry out all responsibilities and duties of
the municipality stated herein.
As used in this Article, the following terms shall have the meanings
indicated:
FIRE LOSS or CLAIM FOR FIRE DAMAGE
Any loss occurring after the effective date of this Article and covered
under a policy of fire insurance, including any endorsements or riders to
the policy.
No insurance company, association or exchange (hereinafter the "insurer")
doing business in the Commonwealth of Pennsylvania shall pay a claim of a
named insured for fire damage to a structure located within the City of Pottsville
(hereinafter named the "municipality") where the amount recoverable for the
fire loss to the structure under all policies exceeds seven thousand five
hundred dollars ($7,500.), unless the insurer is furnished by the Municipal
Officer with a municipal certificate pursuant to Section 508(b) and unless there is compliance with Sections 508(c) and (d) and the provisions of this Article. The city has adopted an ordinance
requiring payment of delinquent taxes from fire insurance proceeds and herein provides notice of said adoption to the insurer.
After full compliance with the requirements of Section 508(b)(1)(i)
and the Delinquent Taxes Ordinance, the insurer shall pay the claim of the named insured; provided,
however, that if the loss agreed upon by the named insured and the insurer
equals or exceeds sixty percent (60%) of the aggregate limits of liability
on all fire policies covering the building structure, the following procedures
shall be followed:
A. The insurer shall transfer from the insurance proceeds
to the Municipal Officer the aggregate of two thousand dollars ($2,000.) for
each fifteen thousand dollars ($15,000.) of a claim and for each fraction
of that amount of a claim, provided that:
(1) This section is to be applied such that if the claim
is fifteen thousand dollars ($15,000.) or less, the amount transferred to
the municipality shall be two thousand dollars ($2,000.).
(2) 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 insurer shall transfer
to the municipality from the insurance proceeds the amount based upon the
estimate.
B. 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.
C. After the transfer, the named insured may submit a contractor's
signed estimate of the costs of removing, repairing or securing the building
or other structure, and the designated officer shall return the amount of
the funds transferred to the municipality 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. Upon receipt of proceeds under this section, the municipality
shall do the following:
(1) The Municipal Officer shall place the proceeds in the
separate fund to be used solely as security against the total costs of removing,
repairing, or securing the building or structure which are incurred by the
municipality. Such costs shall include, without limitation, any engineering,
legal or administrative costs incurred by the municipality in connection with
such removal, repair or securing of the building or any proceedings related
thereto.
(2) It is the obligation of the insurer when transferring
the proceeds to provide the municipality with the name and address of the
named insured. Upon receipt of the transferred funds and the name and address
of the named insured, the Municipal Officer 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.
(3) When repairs, removal or securing of the building or
other structure have been completed in accordance with all applicable regulations
and orders of the municipality and the required proof of such completion received
by the Municipal Officer, and if the municipality has not incurred any costs
for repairs, removal or securing, the fund shall be returned to the named
insured. If the municipality has incurred costs for repairs, removal or securing
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.
(4) To the extent that interest is earned on proceeds held
by the municipality pursuant to this section, and retained by it, such interest
shall belong to the municipality. 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.
E. Nothing in this section shall be construed to limit the
ability of the municipality to recover any deficiency. Furthermore, nothing
in this Article 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.
The City Council of the City of Pottsville may by resolution adopt procedures
and regulations to implement Section 508 and this Article and may by resolution fix reasonable fees to
be charged for municipal activities or services provided pursuant to Section
508 and this Article, including but not limited to issuance of certificates
and bills, performance of inspections and opening separate fund accounts.
Any owner of property, any named insured or any insurer who violates
this Article shall be subject to a penalty of up to one thousand dollars ($1,000.)
per violation.
[Adopted 3-13-1995 as Ord.
No. 533]
The Treasurer of the City of Pottsville or such official's designee
(hereinafter, the "Municipal Officer") is hereby appointed as the designated
officer who is authorized to carry out all responsibilities and duties of
the municipality stated herein.
As used in this Article, the following terms shall have the meanings
indicated:
FIRE LOSS or CLAIM FOR FIRE DAMAGE
Any loss occurring after the effective date of this Article and covered
under a policy of fire insurance, including any endorsements or riders to
the policy.
No insurance company, association or exchange (hereinafter the "insurer")
doing business in the Commonwealth of Pennsylvania shall pay a claim of a
named insured for fire damage to a structure located within the City of Pottsville
(hereinafter the "municipality") where the amount recoverable for the fire
loss to the structure under all policies exceeds seven thousand five hundred
dollars ($7,500.), unless the insurer and the named insured comply with the
provisions of Section 508(b) and the provisions of this Article. The city has adopted a Fire
Insurance Escrow Ordinance and herein provides notice of said adoption to the insurer.
A. The Municipal Officer shall, upon the written request
of the named insured specifying the tax description of the property, the name
and address of the insurer and the date agreed upon by the insurer and the
named insured as the date of the receipt of a loss report of the claim, furnish
the insurer either of the following within fourteen (14) working days of the
request:
(1) 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 Municipal Officer's certificate or verbal
notification, the municipality has not 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
(2) A certificate and bill showing the amount of delinquent
taxes, assessments, penalties and use 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 Municipal Officer's certificate,
the amount of the total costs, if any, certified to the Municipal Officer
that have been incurred by the municipality for the removal, repair or seeing
of a building or other structure on the property.
B. For the purposes of this clause, the municipality shall
provide to the Municipal Officer the total amount, if any, of such costs,
if available, or the amount of costs known to the municipality at the time
of the Municipal Officer's certificate.
C. 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.
Upon the receipt of a certificate pursuant to §
137-10A(1) of this Article, the insurer shall pay the claim of the named insured in accordance with the policy terms. The city has adopted a Fire Insurance Escrow Ordinance and herein provides notice of said adoption to the insurer.
Upon the receipt of a certificate and bill pursuant to §
137-10A(2) of this Article, the insurer shall return the bill to the Municipal Officer and transfer to the Municipal Officer an amount from the insurance proceeds necessary to pay the taxes, assessments, penalties, charges and costs as shown on the bill, or the full amount of the insurance proceeds, whichever is the lesser amount. The municipality shall receive the amount and apply or credit it to payment of the items shown in the bill.
Nothing in this Article shall be construed to limit the ability of the
municipality to recover any deficiency.
The transfer of proceeds to the Municipal Officer shall be on a pro
rata basis by all insurers with applicable policies of insurance providing
protection for fire loss.
The City Council of the City of Pottsville may by resolution adopt additional
procedures and regulations to implement Section 508 and this Article and may by resolution fix reasonable fees to
be charged for municipal activities or services provided pursuant to Section
508 and this Article, including but not limited to issuance of certificates
and bills.
Any owner of property, any named insured or any insurer who violates
this Article shall be subject to a penalty of up to one thousand dollars ($1,000.)
per violation.