[Adopted 5-25-1995 by Ord. No. 1995-07
(Ch. 1, Part 10, of the 2003 Code)]
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 Township where
the amount recoverable for the fire loss to the structure under all policies
exceeds $7,500 unless the insurer is furnished by the Township's Treasurer
with a certificate pursuant to § 508(b) of the Insurance Company
Law of 1921, as amended by Act 98 of 1992, and Act 93 of 1994 (collectively
the "Act"), and unless there is compliance with the procedure set forth in
§ 508(c) and (d) of the Act.
When all Township claims and Township expenses have been paid pursuant to §
178-2 of this article, or where the Treasurer has issued a certificate described in §
178-2A(1) indicating that there are no Township claims or Township expenses against the property, 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 60% of the aggregate limits of liability on all fire policies covering the building or structure, the following procedures must be followed:
A. The insurer shall transfer from the insurance proceeds
to the Treasurer, in the aggregate, $2,000 for each $15,000 of such claim
or fraction thereof.
B. If at the time a loss report is submitted by the insured,
such insured has submitted to the insurer, with a copy to the Township, 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 formula, the insurer shall transfer to the Treasurer from
the insurance proceeds the amount specified in the estimate. If there is more
than one insurer, the transfer of proceeds shall be on a pro rata basis by
all insurers insuring the building or other structure.
C. Upon receipt of the above described portion of the insurance
proceeds, the Treasurer shall do the following:
(1) Place the proceeds in a separate fund to be used solely
as security against the total Township expenses anticipated by the Township
to be required in removing, repairing or securing the building or structure
as required by this article. Such costs shall include, without limitation,
any engineering, legal or administrative costs incurred by the Township in
connection with such removal, repair or securing or any proceedings related
thereto.
(2) Mail to the named insured, at the address received from
the insurer, a notice that the proceeds have been received by the Township
and that the procedures under this subsection shall be followed.
(3) After the transfer, the named insured may submit to the
Township a contractor's signed estimate of the costs of removing, repairing
or securing the building or other structure, in which event the Treasurer
shall, if such estimate is deemed by the Treasurer to be reasonable, return
to the insured the amount of the funds transferred to the Township in excess
of that required to pay the Township expenses, provided the Township has not
commenced to remove, repair or secure the building or other structure, in
which case the Township will complete the work.
(4) Pay to the Manager, for reimbursement to the Township's
General Fund, the amount of Township expenses paid by the Township.
(5) Pay the remaining balance in the fund (without interest)
to the named insured upon receipt of a certificate issued by the Codes Enforcement
Officer of the Township that the repair, removal or securing of the building
or other structure has been completed in accordance with all applicable codes
and regulations of the Township.
D. Nothing in this section shall be construed to limit the
ability of the Township to recover any deficiency in the amount of Township
claims or Township expenses recovered pursuant to the article or to insurance
proceeds by an action at law or equity to enforce the codes of the Township
or to enter into an agreement with the named insured with regard to such other
disposition of the proceeds as the Township may deem reasonable.
[Amended 2-27-1997 by Ord. No. 1997-06; 12-11-2003
by Ord. No. 2003-18]
Any person, firm or corporation who shall violate any provision of this
article, upon conviction thereof in an action brought before a district justice
in the manner provided for the enforcement of summary offenses under the Pennsylvania
Rules of Criminal Procedure, shall 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 90 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.
[Amended 12-11-2003 by Ord. No. 2003-18]
The Secretary of the Township shall transmit a certified copy of this
article promptly to the Department of Community and Economic Development of
the Commonwealth of Pennsylvania.
Nothing in this article shall be construed to affect any suit or proceeding
in any court, any rights acquired or liability incurred, any permit issued
or any cause or causes of action existing under other ordinances of the Township
prior to the enactment of this article.