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 Upper Hanover Township (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 Manager with a certificate pursuant to Section 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 Section 508(c) and (d) of the Act.
The Township Manager is hereby appointed as
the designated officer who is authorized to carry out all the responsibilities
and duties as stated herein. It shall be the duty of the Township
Manager to issue the certifications required under this chapter. However,
the Township Manager shall only be responsible for ascertaining the
amount of any and all real estate taxes due, assessment penalties
or user charges against real property.
Where, pursuant to Section 508(b)(1)(i) of Act
98 of 1992, the Township Manager issues a certificate or, at the discretion
of Upper Hanover Township, a verbal notification, which shall be confirmed
in writing by the insurer, 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 as agreed upon by the named insurer and
the insuring agent equals or exceeds 60% of the aggregate limits of
liability on all fire policies covering the building or other structure,
the following procedure must be followed:
A. The insuring agent shall transfer from the insurance
proceeds to the Township Manager in the aggregate of $2,000 for each
$15,000 of a claim, this section to be applied such that, if the claim
is $15,000 or less, the amount transferred to the Township shall be
$2,000.
B. If at the time of a loss report the named insured
has submitted 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 transfer formula,
the insuring agent shall transfer to the Township from the insurance
proceeds the amount specified in the estimate.
C. The transfer proceeds shall be on a pro rata basis
by all companies, associations or exchanges insuring the building
or other structure. Policy proceeds remaining after the transfer to
Upper Hanover Township shall be disbursed in accordance with policy
terms.
D. After the transfer, the named insured may submit a
contractor's signed estimate of the cost of the removing, repairing
or securing the building or other structure and the Township Manager
shall return the amount of the funds transferred to the Township 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.
E. When transferring funds under this section, an insurance
company, association or exchange shall provide the Township with the
name and address of the named insured.
F. Upon receipt of the information set forth in Subsection
E of this section, the Township shall contact the named insured to certify that the proceeds have been received by the Township and notify the named insured that the procedure under this section be followed.
G. Upon receipt of the proceeds under this section, the
Township shall do the following:
(1) The Township Manager shall place the proceeds in a
separate fund to be used solely as security against the total cost
of removing, repairing or securing the building or structure which
are incurred by the Township. Such costs shall include, without limitation,
any engineering, legal or administrative costs incurred by the Township
in connection with such removal, repair or securing of the building
or any proceedings related thereto.
(2) 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 is received by the Township Manager, and if the Township
has not incurred any cost for repairs, removal or securing, the funds
shall be returned to the named insured. If the Township has incurred
cost for repairs, removal or securing of the building or other structure,
the cost shall be paid from the fund and, if excess funds remain,
the Township shall transfer the remaining funds to the named insured.
(3) To the extent that interest is earned on the proceeds
held by the Township pursuant to this section and not returned to
the named insured, such interest shall belong to the Township. 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 the proceeds are returned.
H. Nothing in this section shall be construed to limit
the ability of the Township to recover any deficiency. Furthermore,
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 or from negotiating some
other reasonable disposition of the damaged property.
Where, pursuant to Section 508(b)(1)(ii), Act
98 of 1992, the Township Manager issues a certificate and bill showing
the amount of delinquent taxes, assessment, penalties and user charges
against the real property have not been paid as of the date of the
certificate and also showing, as of the date of the certificate, the
amount of the total costs, if any, certified to the Township Manager
that have been incurred by the Township for removal, repair or securing
of the building or other structure on the real property, the insuring
agent shall return the bill to the Township Manager and transfer to
the Township Manager an amount from the insurance proceeds necessary
to pay the taxes, assessment, penalties, charges and costs as shown
on the bill. The Township, upon receipt of the amount, shall apply
or credit it to the payment of the items shown on the bill. A tax
assessment, penalty or user charge becomes delinquent at the time
and/or on the date a lien could have otherwise been filed against
the property by Upper Hanover Township under applicable law.
The Township Supervisors may, by resolution,
adopt procedures and regulations to implement Act 98 of 1992 and this
chapter, and may, by resolution, fix reasonable fees to be charged
for Township activities or services provided pursuant to Act 98 of
1992 and this chapter, including, but not limited to, the issuance
of certifications and bills, the performance of inspections, and the
opening of separate fund accounts.
Any owner of property, any named insured, any
insurer, person, firm or corporation who violates the provisions of
this section or shall to fail to comply with any of the requirements
herein stated shall be liable, upon summary conviction, to fines and
penalties not exceeding $1,000, which fines and penalties may be collected
by suit or summary proceedings brought in the name of the Township
before any Magisterial District Judge or recovered as debts of the
like amount are now by law recoverable.