Township of West Bradford, PA Chapter 191 Fire Insurance Claims

[HISTORY: Adopted by the Board of Supervisors of the Township of West Bradford 3-13-2012 by Ord. No. 2012-03. Amendments noted where applicable.]

§ 191-1 Designated officer.

The Township Treasurer or such official's designee is hereby appointed as the designated officer authorized to carry out all responsibilities and duties stated herein.

§ 191-2 Municipal certificate.

A. No insurance company, association or exchange (hereinafter "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 West Bradford Township (hereinafter "Township") 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 designated officer with a municipal certificate pursuant to Section 508(B) of Act 98 of 1992, as amended, and unless there is compliance with both Section 508(C) of Act 98 of 1992, as amended, and the provisions of this chapter.[1]

[1] Editor's Note: See 40 P.S. § 638.

B. If the designated officer issues a municipal certificate that confirms there are delinquent taxes, assessments, penalties and/or user charges against the subject property, the insuring agent shall, within 14 days of the receipt of the municipal certificate, transfer to the designated officer funds from the insurance proceeds equal to the amount due to the Township, and prior to the insuring agent paying a claim to the named insured in accordance with the policy terms. In addition, 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 or structure, the insuring agent must follow the procedures set forth in § 191-3 of this chapter prior to the insuring agent paying a claim to the named insured in accordance with the policy terms.

C. If the designated officer issues a municipal certificate that confirms there are no delinquent taxes, assessments, penalties and/or user charges against real property, the insuring agent shall pay the claim of the named insured in accordance with the policy terms; 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 or structure, the insuring agent shall first follow the procedures set forth in § 191-3 of this chapter.

§ 191-3 Escrow.

A. The insuring agent shall follow the below procedure when 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 or structure:

(1) The insuring agent shall transfer from the insurance proceeds to the designated officer an amount in the aggregate of $2,000 for each $15,000 of a claim and for each fraction of that amount of a claim; if the claim is $15,000 or less, the amount transferred to the designated officer shall be $2,000.

(2) 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 to remove, repair or secure the building or other structure, the insuring agent shall transfer from the insurance proceeds to the designated officer the amount specified in the estimate.

(3) The transfer of proceeds shall be on a pro rata basis by all companies, associations or exchanges insuring the building or other structure.

(4) Within 60 days after the transfer, the named insured shall submit a contractor's signed estimate for the costs to remove, repair or secure the building or other structure, and the designated officer shall return any amount of funds transferred to the Township in excess of said estimate, provided the Township has not commenced to remove, repair or secure the building or other structure.

(5) Upon receipt of proceeds under this section:

(a) The designated officer shall place the proceeds in a separate fund to be used solely as security against the total costs to remove, repair or secure the building or structure as incurred by the Township. Such costs shall include all reasonable and customary engineering, legal or administrative costs incurred by the Township in connection with such removal, repair or securing of the building or structure.

(b) It is the obligation of the insuring agent when transferring the proceeds to the Township to provide the Township 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 Township shall certify that the proceeds have been received by sending written notification to the named insured that states the proceeds have been received, and procedures under this chapter shall be followed.

(c) When repairs, removal or securing of the building or other structure have been completed in accordance with all applicable regulations and orders of the Township, and the required proof of such completion received by the designated officer, and if the Township has not incurred any costs for such repairs, removal or securing, the funds shall be returned to the named insured. If the Township has incurred costs for repairs, removal or securing of the building or other structure, these costs shall be paid from the funds, and if excess funds remain, the Township shall transfer the excess funds to the named insured.

B. Nothing in this section shall be construed to limit the ability of the Township to recover any deficiency. Furthermore, nothing in this subsection 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 to the satisfaction of both parties.

§ 191-4 Enabling procedures and fees.

The Township may by resolution adopt those procedures and regulations required to implement Act 98 of 1992, as amended, and this chapter; may by resolution fix reasonable fees to be charged for Township services provided pursuant to Act 98 of 1992, as amended, and this chapter, including but not limited to the issuance of municipal certificates, the performance of inspections and the creation of escrow fund accounts.

§ 191-5 Copy to be filed with state.

Upon the enactment of this chapter, the Township Secretary shall file an exact copy with the Commonwealth of Pennsylvania, Department of Community and Economic Development, Governor's Center for Local Government Services, together with the name, position and telephone number of the Township official responsible for compliance with Section 508 of the Insurance Company Law of 1921, as amended.