[HISTORY: Adopted by the Board of Supervisors of Mount PleasantTownship
as indicated in article histories. Amendments noted where applicable.]
[Adopted 7-13-1994 by Ord. No. 55]
Whenever a fire loss is sustained by the owner of property within Mount
Pleasant Township the Township shall issue a municipal certificate within
the following guidelines:
A.
No insurance company, association or exchange doing business in this commonwealth shall pay a claim of a named insured for fire damage to a structure located within Mount Pleasant Township where the amount recoverable for the fire loss to the structure under all policies exceeds $7,500, unless the insurance company, association or exchange is furnished with a certificate pursuant to Subsection B of this section and unless there is compliance with the procedure set forth in Subsections C and D of this section.
[Amended 11-14-2003 by Ord. 94]
B.
Issuance of certificates by Township; insurance company
procedure.
(1)
The Mount Pleasant Township Secretary/Treasurer shall,
upon the written request of the named insured specifying the tax description
of the property and the date agreed upon by the insurance company, association
or exchange and the named insured as of the date of the receipt of proof of
loss report of the claim, furnish the insurance company, association or exchange
either of the following within 14 working days of the request:
[Amended 11-14-2003 by Ord. No. 94]
(a)
A certificate 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 Secretary/Treasurer's
certificate, Mount Pleasant Township has not certified any amount as total
costs incurred by Mount Pleasant Township for the removal, repair or securing
of a building or other structure on the property; or
(b)
A certificate and bill showing the amount of delinquent
taxes, assessments, penalties and user charges against the property as of
the date specified in the request that have not been paid as of the date of
the certificate and also showing, as of the date of the Secretary/Treasurer's
certificate, the amount of total costs, if any, certified to the Secretary/Treasurer
that have been incurred by the municipality for the removal, repair or securing
of a building or other structure on the property. For the purposes of this
subsection, the municipality shall certify to the Secretary/Treasurer the
total amount, if any, of such costs. 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 under applicable law.
(2)
Procedure following issuance of certificate.
(a)
Upon the receipt of a certificate pursuant to Subsection B(1)(a) 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 case of such a loss, the insurance company, association or exchange, the insured property owner and Mount Pleasant Township shall follow the procedures set forth in Subsections C and D of this section.
(b)
Upon the receipt of the certificate and bill pursuant to Subsection B(1)(b) of this section, the insurance company, association or exchange shall return the bill to the Secretary/Treasurer and transfer to the Secretary/Treasurer an amount from the insurance proceeds necessary to pay the taxes, assessments, penalties, charges and costs as shown on the bill. The municipality shall receive the amount and apply or credit it to payment of the items shown in the bill.
C.
When the loss agreed to between the named insured and
the company, association or exchange equals 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 designated officer of the municipality in the aggregate $2,000
for each $15,000 and each fraction of that amount of a claim, or, if at that
time of a proof of loss agreed to between the named insured and the insurance
company, association or exchange 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 insurance company, association or exchange
shall transfer from the insurance proceeds the amount specified in the estimate.
The transfer of 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 the municipality 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 other structure
after the transfer, and the designated
officer shall return the amount of the fund in excess of the estimate to the
named insured if the municipality has not commenced to remove, repair or secure
the building or other structure.
[Amended 11-14-2003 by Ord. No. 94[1]]
D.
Upon receipt of proceeds by Mount Pleasant Township as authorized by this section, the designated officer shall place the proceeds in a separate fund to be used solely as security against the total cost of removing, repairing or securing incurred by Mount Pleasant. When transferring the funds as required in Subsection C of this section, an insurance company, association or exchange shall provide Mount Pleasant Township with the name and address of the named insured, whereupon Mount Pleasant Township shall contact the named insured, certify that the proceeds have been received by Mount Pleasant Township and notify the named insured that the procedures under this subsection shall be followed. The fund shall be returned to the named insured when repairs, removal or securing of the building or other structure have been completed and the required proof received by the designated officer if Mount Pleasant Township has not incurred any costs for repairs, removing or securing. If Mount Pleasant Township 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, Mount Pleasant Township shall transfer the remaining funds to the named insured. Nothing in this section shall be construed to limit the ability of Mount Pleasant Township to recover any deficiency. Further, nothing in this subsection shall be construed to prohibit Mount Pleasant 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.
E.
Proof of payment by the insurance company, association or exchange of proceeds under a policy in accordance with Subsection C of this section is conclusive evidence of this discharge of its obligation to the insured under the policy to the extent of the payment and of compliance by the company, association or exchange with Subsection C of this section.
F.
Nothing in this section shall be construed to make an
insurance company, association or exchange liable for any amount in excess
of proceeds payable under its insurance policy or for any other act performed
pursuant to this section or to make Mount Pleasant Township or any public
official and insured under a policy of insurance or to create an obligation
to pay delinquent property taxes or unpaid removal liens or expenses other
than as provided in this section.
G.
An insurance company, association or exchange making
payments of policy proceeds under this section for delinquent taxes or structure
removal liens or removal expenses incurred by Mount Pleasant Township shall
have a full benefit of such payment, including all rights of subrogation and
of assignment.
H.
This section shall be liberally construed to accomplish
its purpose to deter the commission of arson and related crimes, to discourage
the abandonment of property and to prevent urban blight and deterioration.
I.
A copy of this article shall be filed with the Pennsylvania
Department of Community and Economic Development, together with the name,
position and telephone number of the municipal official responsible for compliance
with this section.
[Added 11-14-2003 by Ord. No. 94]
The Township Secretary/Treasurer is hereby designated as the designated officer referred to in § 115-1.
