[HISTORY: Adopted by the Borough Council of the Borough of Moosic
as indicated in article histories. Amendments noted where applicable.]
GENERAL REFERENCES
Fire prevention — See Ch. 154.
[Adopted 3-9-1993 by Ord. No. 7-1993]
In certain fire losses, the insurance company, association or exchange
shall transfer insurance proceeds to a designated officer of the Borough as
a portion of the insurance proceeds to be held as security against the total
cost of removing, repairing or securing the damaged building, providing for
fees, penalties for violation of this article and setting forth procedures
and requirements pertaining to such insurance proceeds pursuant to Act 98
of 1992.[1]
[1]
Editor's Note: See 40 P.S. § 638 et seq.
Procedures and requirements pursuant to Act 98 of 1992 are hereby as
follows:
A.
The Tax Collector of the Borough of Moosic is hereby
appointed as the designated officer who is authorized to carry out all responsibilities
and duties stated herein.
B.
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 Moosic where the amount recoverable for the fire loss to the
structure under all policies exceeds $7,500, unless the named insured or insuring
agent is furnished by the Tax Collector of the Borough of Moosic with a municipal
certificate pursuant to Section 508(B) of Act 98 of 1992 and unless there
is compliance with Section 508(C) and (D) of Act 98 of 1992 and the provisions
of this article. Where, pursuant to Section 508(B)(1)(I) of Act 98 of 1992,
the Tax Collector 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 is agreed upon 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:[1]
(1)
The insuring agent shall transfer from the insurance
proceeds to the Tax Collector of the Borough of Moosic in the aggregate sum
of $2,000 for each $15,000 of a claim and for each fraction of that amount
of a claim, this section to be applied such that if the claim is $15,000 or
less, the amount transferred to the Borough of Moosic shall be $2,000; or
(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 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 Borough of Moosic from the insurance proceeds the amount specified
in the estimate.
(3)
The transfer of proceeds shall be on pro rata basis by
all companies, associations or exchanges insuring the building or other structure.
(4)
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 Tax Collector of the Borough of Moosic shall return
the amount of the funds transferred to the Borough of Moosic in excess of
the estimate to the named insured, if the Borough of Moosic has not commenced
to remove, repair or secure the building or other structure.
(5)
Upon receipt of proceeds under this section, the Borough
of Moosic shall do the following:
(a)
The Tax Collector of the Borough of Moosic shall place
the proceeds in the separate fund to be used solely as security against the
total costs of removing, repairing, or securing the building or structure,
which are incurred by the Borough of Moosic; such costs shall include, without
limitation, any engineering, legal or administrative costs incurred by the
municipality in connection with such removal, repair or securing of the building
or any proceedings related thereto; and
(b)
It is the obligation of the insuring agent when transferring
the proceeds to provide the Borough of Moosic 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 designated officer shall contact the named
insured, certify that the proceeds have been received by the Borough of Moosic
and notify the named insured that the procedures under this subsection shall
be followed; and
(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 Borough of Moosic and the required proof of such completion
received by the Tax Collector of the Borough of Moosic, and if the Borough
of Moosic has not incurred any costs for repairs, removal or securing, the
fund shall be returned to the named insured; if the Borough of Moosic has
incurred costs 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 Borough
of Moosic shall transfer the remaining funds to the named insured; and
(d)
To the extend that interest is earned on proceeds held
by the Borough of Moosic pursuant to this section, and not returned to the
named insured, such interest shall belong to the Borough of Moosic. To the
extent that the 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.
(6)
Nothing in this article shall be construed to limit the
ability of the Borough of Moosic to recover any deficiency. Furthermore, nothing
in this article shall be construed to prohibit the Borough of Moosic 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.
The governing body may fix reasonable fees to be charged for Borough
activities of certificates and bills, performance of inspections and opening
separate fund accounts.
An owner of property, any named insured or any insuring agent who violates
this article shall be subject to a penalty of up to $1,000 per violation,
plus costs of prosecution, and, in default of payment of such fine and costs,
to imprisonment for not more than 30 days.
