No insurance company, association or exchange doing business in the Commonwealth of Pennsylvania shall pay a claim of a named insured for fire damage to a structure located within Uwchlan Township under the terms of Section 508(a) of the Insurance Company Law of 1921, as amended, 40 P.S. § 638(a), unless the insurance company, association or exchange is furnished with a certificate pursuant to §
132-2 of this chapter and unless there is compliance with the procedures set forth in §§
132-3 and
132-4 of this chapter.
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 Township
Treasurer the amounts required by and in accordance with the procedures
set forth in 40 P.S. § 638(c). Policy proceeds remaining
after the transfer to the Township 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 Township Treasurer
shall return the amount of the fund in excess of the estimate to the
named insured if the Township has not commenced to remove, repair
or secure the building or other structure. The Township Treasurer
shall carry out the duties of this section.
Upon receipt of the proceeds by the Township as authorized by §
132-3, the Township Treasurer 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 Township. When transferring the funds as required in §
132-3, an insurance company, association or exchange shall provide the Township with the name and address of the named insured, whereupon the Township 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 Township Treasurer if the Township has not incurred any costs for repairs, removal or securing. If the Township 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 Township shall transfer the remaining funds to the named insured. Nothing in this chapter shall be construed to limit the ability of the Township to recover any deficiency. Further, nothing in this section 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 if some other reasonable disposition of the damaged property has been negotiated.
The total costs incurred by the Township for
the removal, repair or securing of a building or other structure under
this chapter shall include, but not be limited to, all administrative,
personnel and overhead costs incurred by the Township in accordance
with generally accepted accounting procedures.
Upon the enactment of this chapter, the Township
Secretary shall file an exact copy of the ordinance with the Department
of Community and Economic Development together with the name, position
and phone number of the municipal official responsible for compliance
with Section 508 of the Insurance Company Law of 1921, as amended.