[Adopted 2-10-2021 by Ord. No. 969]
The Township Manager or other duly authorized representative
appointed by the Township Board of Commissioners is hereby appointed
as the designated officer who is authorized to carry out all responsibilities
and duties stated herein and in accordance with Section 638 of the
Insurance Department Act of 1921, as amended, 40 P.S. § 638
("Section 638").
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 Springfield Township 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 Township Treasurer with
a municipal certificate pursuant to Section 638(b) and unless there
is compliance with Section 638(c) and (d) and the provisions of this
article. Any request to the Township Treasurer for a municipal certificate
shall be in writing.
Upon receipt of proceeds under §
49-3 (Payment procedures), the municipality shall do the following:
A. 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 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 proceeding related thereto.
B. It is the obligation of the insuring agent when transferring the
proceeds to provide the Township 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 Township and notify the named insured that the procedures under
this subsection shall be followed.
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 Township and the required proof of such completion
is received by the designated officer, and if the Township has not
incurred any costs for repairs, removal or securing, the funds shall
be returned to the named insured. If the 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,
the Township shall transfer the remaining funds to the named insured.
D. To the extent that interest is earned on any proceeds held by the
Township that, pursuant to this section, are 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 returned proceeds shall be distributed to the named insured at
the time that the proceeds are returned.
Nothing in this article shall be construed to limit the ability
of the Township to recover any deficiency. Furthermore, nothing in
this article 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 if some other reasonable disposition
of the damaged property, as determined by the parties, has been negotiated.
An insuring agent making payments of policy proceeds under Section
638 for delinquent taxes or structural removal liens or removal expenses
incurred by the Township shall have full benefit of such payment,
including all rights of subrogation and of assignment.
The Board of Commissioners may by resolution adopt procedures
and regulations to implement Section 638 and this article and may
by resolution fix reasonable fees to be charged for municipal activities
or services provided pursuant to Section 638 and this article, including
but not limited to issuance of certificates and bills, performance
of inspections and opening separate fund accounts.
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.