[Adopted 3-4-1998 by Ord. No. 370]
The Township of Rostraver hereby appoints the
Township Secretary as the designated officer who is authorized to
carry out all responsibilities and duties stated herein.
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 Township of Rostraver (hereinafter
the "municipality") where the amount recoverable for the fire loss
to the structure under all policies exceeds $7,500, unless the insuring
agent is furnished by the Municipal Treasurer with a municipal certificate
pursuant to Section 508(b) of the Insurance Company Law of 1921, as
amended [and unless there is compliance with Section 508(c) and
(d) of the Insurance Company Law of 1921, as amended, and the provisions of this article].
Where, pursuant to Section 508(b)(1)(i) of the
Insurance Company Law of 1921, as amended, the Municipal Treasurer issues a certificate or, at the
discretion of the municipality, a verbal notification which shall
be confirmed in writing by the insuring agent, 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 agreed upon by the named
insured and the insuring agent equal or exceeds 60% of the aggregate
limits of liability on all fire policies covering the building or
other structure, the following procedures must be followed:
A. The insuring agent shall transfer from the insurance
proceeds to the designated officer of the municipality in the aggregate
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 municipality shall
be $2,000; or
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 municipality from the insurance
proceeds the amount specified in the estimate.
C. The transfer of proceeds shall be on pro rata basis
by all companies, associations or exchanges insuring the building
or other structure.
D. 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 designated officer
shall return the amount of the funds transferred to the municipality
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.
E. Upon receipt of proceeds under this section, the municipality
shall do the following:
(1) The designated officer shall place the proceeds in
a 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 municipality. 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.
(2) It is the obligation of the insuring agent, when transferring
the proceeds, to provide the municipality 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 municipality and notify the named insured that the procedures
under this subsection shall be followed.
(3) When repairs, removal or securing of the building
or other structure have been completed in accordance with all applicable
regulations and orders of the municipality and the required proof
of such completion received by the designated officer, and if the
municipality has not incurred any costs for repairs, removal or securing,
the fund shall be returned to the named insured. If the municipality
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 municipality shall transfer the remaining
funds to the named insured.
(4) To the extent that interest is earned on proceeds
held by the municipality pursuant to this section, but not returned
to the named insured, such interest shall belong to the municipality.
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 that the proceeds are returned.
F. Nothing in this section shall be construed to limit
the ability of the municipality to recover any deficiency. Furthermore,
nothing in this section shall be construed to prohibit the municipality
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.
The Township of Rostraver may by resolution
adopt procedures and regulations to implement the Insurance Company
Law of 1921, as amended, and this article, and may by resolution fix
reasonable fees to be charged for municipal activities or services
provided pursuant to the Insurance Company Law of 1921, as amended,
and this article; including, but not limited to, issuance of certificates
and bills, performance of inspections and opening separate fund accounts.
[Amended 2-23-2000 by Ord. No. 421]
Any 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.
This article shall become effective immediately
and a copy shall be filed with the Pennsylvania Department of Community
and Economic Development, together with the name, position and phone
number of the designated officer.