[Adopted 10-4-1994 by Ord. No. 94-17]
The Director of Administrative Services is hereby appointed
as the designated officer who is authorized to carry out all responsibilities
and duties stated herein.
[Amended 12-22-1994 by Ord. No. 94-25]
No insurance company, association or exchange (hereinafter the
"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 Borough of Bellevue where the amount recoverable
for the fire loss to the structure under all policies exceeds $7,500
unless the insuring agent is furnished by the Borough Treasurer with
a municipal certificate pursuant to § 508(b) of Act 98 of
1992, and unless there is compliance with § 508(c)
and (d) of Act 98 of 1992 and the provisions of this article.
[Amended 12-22-1994 by Ord. No. 94-25]
Where, pursuant to § 508(B)(1)(i) of Act 98 of 1992,
the Borough Treasurer issues a certificate indicating that there are
no delinquent taxes, assessments, penalties or user charges against
real property, the insuring agent shall pay the claim of the named
insured; provided, however, that if the loss agreed upon by the named
insured and the insuring agent equals or exceeds 60% of the aggregate
limits of liability on all fire policies covering the building restructure,
the following procedures must be followed:
A. The insuring agent shall transfer from the insurance proceeds to
the designated officer of the Borough of Bellevue in the aggregate
of $2,000 for each $15,000 of a claim or a fraction thereof rather
than the $1,000 for each $20,000 of a claim previously required.
B. If, at the time of a proof of loss agreed to between the named insured
and the insuring agent, the named insured has submitted a contractor's
signed estimate of the costs of removing, repairing or securing the
building or other structure, the insuring agent shall transfer to
the Borough of Bellevue from the insurance proceeds the amount specified
in the estimate.
C. The transfer of proceeds shall be on a pro rata basis by all companies,
associations or exchanges insuring the building or structure.
D. 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 Borough of Bellevue in
excess of the estimate to the named insured, if the Borough of Bellevue
has not commenced to remove, repair or secure the building or other
structure.
E. Upon receipt of proceeds under this section, the Borough of Bellevue
shall do the following:
(1) The designated officer shall place the proceeds in a separate fund
to be used solely as security against the total costs of removing,
repairing or securing the building or structure which were incurred
by the Borough, such costs shall include, without limitation, any
engineering, legal or administrative costs incurred by the Borough
of Bellevue in connection with such removal, repair or securing of
the building or any proceeds related thereto;
(2) It is the obligation of the insuring agent when transferring the
proceeds to provide the Borough of Bellevue with the name and address
of the named insured. Upon receipt of the transferred funds and the
name and address of the named insured, certify that the proceeds have
been received by the Borough of Bellevue and notify the named insured
that the procedures under this section 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 Borough and the required proof of such completion
received by the designated officer and if the Borough of Bellevue
has not incurred any costs for repairs, removal or securing of the
building, the fund shall be returned to the named insured. If the
Borough of Bellevue 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 Borough of Bellevue shall transfer
the remaining funds to the named insured; and
(4) To the extent that interest is earned on proceeds held by the Borough
of Bellevue pursuant to this section and not returned to the named
insured, such interest shall belong to the Borough of Bellevue. 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.
F. Nothing in this section shall be construed to limit the ability of
the Borough of Bellevue to recover any deficiency. Furthermore, nothing
in this section shall be construed to prohibit the Borough of Bellevue
and the named insured from entering into an agreement that permits
the transfer of funds to the named insured or some other reasonable
disposition of the damaged property has been negotiated.
G. The Borough Treasurer is required to provide a certificate of delinquent
claims directly to the insurance company.
Any owner of property, any named insured or any insuring agent
who shall violate any section of this article shall, upon conviction
thereof, be sentenced to pay a fine of not more than $1,000 plus costs
and, in default of payment of said fine and costs, to a term of imprisonment
not to exceed 30 days. Each day that a violation of this article continues
or each section of this article which shall be found to have been
violated shall constitute a separate offense.
[Added 12-22-1994 by Ord. No. 94-25]
The Director of Administrative Services is hereby directed to
file a certified copy of this article with the Department of Community
and Economic Development within 10 days after the same becomes effective.