[Ord. 99-01, 5/12/1999, § 1]
This Part is adopted pursuant to and implements the provisions of § 508 of the Insurance Company Law of 1921, as amended, 40 P.S. § 638. 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 East Fallowfield Township, if the amount recoverable under any or all insurance policies exceeds $7,500, unless the insurance company, association, or exchange is furnished with a certificate pursuant to § 7-102 of this Part and unless there is compliance with the procedures set forth in §§ 7-103 and 7-104 of this Part.
[Ord. 99-01, 5/12/1999, § 2; as amended by Ord. 2010-01, 3/23/2010]
1.
The Township 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, and the payment of a certification fee, as shall be established from time to time by resolution of the Board of Supervisors, for the administrative expense of processing the request and copying, furnish the insurance company, association, or exchange either of the following within 14 working days of the request:
A.
A certificate or, at the discretion of the Township, a verbal notification which shall be confirmed in writing by the insured 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, the Township has not certified any amounts as total costs incurred by the Township for the removal, repair or securing of a building or other structure on the property.
B.
A certificate and bill showing the amount of delinquent taxes, assessments, penalties, or user charges against the property as of the date specified 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 Township for the removal, repair, or securing of a building or other structure on the property. For the purposes of this Part, 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 Township under applicable law or ordinance.
2.
Receipt of Certificate.
A.
Upon receipt of a certificate pursuant to Subsection 1A 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 Township shall follow the procedures set forth in §§ 7-103 and 7-104 of this Part, the insurance company, association, or exchange shall transfer to the treasurer the amount from the insurance proceeds shown on the bill by separate draft from the amounts transferred under § 7-103 of the chapter. The Township shall receive the amount and apply or credit it to payment of the items shown in the bill.
B.
Upon the receipt of a certificate and bill pursuant to Subsection 1B 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 shown on the bill. In the case of a loss subject to §§ 7-103 and 7-104 of this Part, the insurance company, association, or exchange shall transfer to the treasurer the amount from the insurance proceeds shown on the bill by separate draft from the amounts transferred under § 7-103 of the chapter. The Township shall receive the amount and apply or credit it to payment of the items shown in the bill.
[Ord. 99-01, 5/12/1999, § 3]
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 structure 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. The Township Board of Supervisors Chairman shall determine whether the damaged building is to be removed, repaired, and/or secured; this determination is to be made after consultation with the Township Codes Enforcement Officer or such other Township staff member or other individual or agent considered appropriate by the Chairman of the Board of Supervisors.
[Ord. 99-01, 5/12/1999, § 4]
Upon receipt of the proceeds by the Township as authorized by § 7-103, the Township Treasurer shall place the proceeds in a separate fund to be used solely as security against the total cost of removing, repairing, and/or securing incurred by the Township. When transferring the funds as required in § 7-103, 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 security 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 Part 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.
[Ord. 99-01, 5/12/1999, § 5]
The total costs incurred by the Township for the removal, repair, or securing of a building or other structure under this Part shall include, but not be limited to, all administrative, personnel and overhead costs, attorneys' fees and court costs incurred by the Township in accordance with generally accepted accounting procedures.
[Ord. 99-01, 5/12/1999, § 6]
Upon the enactment of this Part, the Township Secretary shall file an exact copy of this Part with the Department of Economic and Community Development, together with the name, position, and phone number of the municipal official responsible for compliance with § 508 of the Insurance Company Law of 1921, 40 P.S. § 638, as amended.
